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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

Like Idols for scientists
2014-04-10

Kovsie student and scientist Karabelo Moloantoa recently represented the Free State in the South African finals of the FameLab competition during the Sci-Fest in Grahamstown.

Karabelo is a 24-year-old student doing his master’s in Biotechnology. He completed his Bachelor’s degree in Medical Microbiology, as well as his Honours degree in Biochemistry at Kovsies. His research is focused on Bioremediation of mine waste waters.

“FameLab is like the scientists Idols taking place annually,” says Karabelo.

“In the competition we are given three minutes to explain a science aspect to a non-science audience. There are 25 countries that participate. South Africa is the only African country participating.”

“I was called by one of my lecturers an hour before the local competition took place at the National Museum in Bloemfontein. I was actually still tired from playing volleyball the night before,” he explains. “I was unprepared and without slides, but I did my presentation.”

This was the first year Karabelo entered FameLab and although he was somewhat unprepared for the local competition in Bloemfontein, he was nominated to represent the Free State in Grahamstown at the Sci-Fest event. From the 18 semifinalists, Karabelo qualified to go the finals where the 9 finalists were competing to represent South Africa in the United Kingdom for the international finals.

“I did not win the UK trip, but I made it to the finals, which is an achievement as half of the semi-finalists could not make it to the finals,” says Karabelo.

“I feel like I have done well to represent the university and the province as a whole. It was amazing to speak in front of more than 800 people, delivering my presentation. I learnt a lot and improved my skills of communicating scientific aspects. I will definitely enter again next year.”

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