Zimbabwe Expects 50k Job Losses This Year2 years ago
Zimbabwe is expecting a minimum of about 50 000 job losses this year as the economic recession continues unabated.
Even before the coronavirus pandemic outbreak, the Zimbabwean economy was already on a downward trend mainly because of drought, electricity and fuel crisis.
Speaking to Business Times, Economist Tony Hawkins said the coronavirus pandemic has resulted in the retrenchment of a huge number of temporary workers while some took huge pay cuts despite a difficult operating environment. Hawkins said:
We expect over 50,000 employees to lose their jobs by year-end due to the impact of Covid-19 pandemic to business compounded by perennial challenges such as forex challenges, power outages, droughts and rampant inflation.
From the recent survey carried out, 23% of the registered companies have trimmed permanent employees while 50% of the companies have laid-off temporary employees to relieve pressure on the balance sheets which struggled to meet operational costs and wage bills
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The government announced a national lockdown in March this year as a measure to curb the spread and transmission of the coronavirus.
As the number of coronavirus cases is going down, Zimbabwe is slowly loosening the lockdown restrictions in a bid to save the drowning economy.
The Zimbabwean industry is collapsed, for decades, therefore, the economy relies on imports. Therefore, the COVID-19 lockdowns which have been in effect globally have had a huge adverse impact of the Zimbabwean economy.
More: Business Times