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12 October 2020 | Story Andre Damons
Prof Ivan Turok
Prof Ivan Turok, National Research Foundation research professor at the University of the Free State (UFS) and distinguished research fellow at the Human Sciences Research Council (HSRC).

New evidence provides a detailed picture of the extraordinary economic fallout from the COVID-19 pandemic. All regions lost about a fifth of their jobs between February-April, although the cities began to show signs of recovery with the easing of the lockdown to level 3. Half of all adults in rural areas were unemployed by June, compared with a third in the metros. So the crisis has amplified pre-existing disparities between cities and rural areas.

Prof Ivan Turok, National Research Foundation research professor at the University of the Free State (UFS) and distinguished research fellow at the Human Sciences Research Council (HSRC), and Dr Justin Visagie, a research specialist with the HSRC, analysed the impact of the crisis on different locations in a research report (Visagie & Turok 2020).

The main conclusion is that government responses need to be targeted more carefully to the distinctive challenges and opportunities of different places. A uniform, nationwide approach that treats places equally will not narrow (or even maintain) the gaps between them, just as the blanket lockdown reflex had adverse unintended consequences for jobs and livelihoods.

According to the authors, the crisis has also enlarged the chasm between suburbs, townships and informal settlements within cities. More than a third of all shack dwellers (36%) lost their jobs between February and April, compared with a quarter (24%) in the townships and one in seven (14%) in the suburbs. These effects are unprecedented.

Government grants have helped to ameliorate hardship in poor communities, but premature withdrawal of temporary relief schemes would be a serious setback for people who have come to rely on these resources following the collapse of jobs, such as unemployed men.

Before COVID-19

In February 2020, the proportion of adults in paid employment in the metros was 57%. In smaller cities and towns it was 46% and in rural areas 42%. This was a big gap, reflecting the relatively fragile local economies outside the large cities.
Similar differences existed within urban areas. The proportion of adults living in the suburbs who were in paid employment was 58%. In the townships it was 51% and in peri-urban areas it was 45%.

These employment disparities were partly offset by cash transfers to alleviate poverty among children and pensioners. Social grants were the main source of income for more than half of rural households and were also important in townships and informal settlements, although not to the same extent as in rural areas.  

Despite the social grants, households in rural areas were still far more likely to run out of money to buy food than in the cities.

How did the lockdown affect jobs?

The hard lockdown haemorrhaged jobs and incomes everywhere. However, the effects were worse in some places than in others. Shack dwellers were particularly vulnerable to the level 5 lockdown and restrictions on informal enterprise. This magnified pre-existing divides between suburbs, townships and informal settlements within cities.
There appears to have been a slight recovery in the suburbs between April-June, mostly as a result of furloughed workers being brought back onto the payroll. Few new jobs were created. Other areas showed less signs of bouncing back.

Overall, the economic crisis has hit poor urban communities much harder than the suburbs, resulting in a rate of unemployment in June of 42-43% in townships and informal settlements compared with 24% in the suburbs. The collapse poses a massive challenge for the recovery, and requires the government to mobilise resources from the whole of society.


News Archive

Autumn graduation a huge success
2012-04-04

 

Proud academics celebrate their child's achievement.
Salomé Naudé received her B.Med.Sc-degree. Her parents are Prof. Jacobus Naudé and Prof. Cynthia Miller-Naudé. (Senior Professors from the Department of Classical and Near Eastern Studies.
Photo: Leonie Bolleurs
2 April 2012


The University of the Free State (UFS) hosted its autumn graduation ceremony on the Bloemfontein Campus last week where the most diplomas, certificates and degrees were awarded at eight different ceremonies in the Callie Human Centre.
A total of 629 diplomas and certificates and 2856 degrees were awarded from Tuesday 27 March 2012 to Friday 30 March 2012.

“Use your degree to improve the lives of people. Do justice,” Prof. Jonathan Jansen, UFS Vice-Chancellor and Rector, encouraged the graduates.

“People know it as a university that chooses restoration over revenge and forgiveness over vengeance.”
Mr. Roland Rudd, a Kovsie alumnus, told students that their blood, sweat and tears had paid off.

Mr. Rudd is a former education student who recently was named the Best Secondary Teacher in the Western Cape.
A highlight of the autumn graduation was when Natalie Jordaan received a standing ovation during the ceremony for the Faculty of Economic and Management Sciences. She is the first Deaf student in the history of the university to receive her degree. Natalie’s first language is Sign Language.
Marina Viljoen, a recipient of one of the university’s 12 Dean’s Medals, also received nine awards at the Faculty of Law’s prize giving ceremony. She was awarded the degree LL.B. (summa cum laude).
Johané Nienkemper (B.Sc. Hons.) received the Senate’s Medal and Prize as the best honours student at the UFS, as well as the Dean’s Medal as the best honours student in the Faculty of Natural and Agricultural Sciences.

Potella Sibongile, a Xhosa imbongi (praise singer) and UFS student received his degree in B.Com.Financial Administration. Potella delivered a praise poem to the graduates before they received their degrees, saying they “will now receive a new birth certificate”.

Master’s degrees and doctorates will be conferred at the Bloemfontein Campus on Thursday 14 June 2012.

The graduation ceremony of the Qwaqwa Campus will take place on 12 May 2012. Diplomas/certificates, degrees and doctorates will be awarded during the ceremony.
 

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