By Frank Nxumalo

Job losses in South Africa had more than doubled in the 12 months from January 2008 to January 2009 with figures jumping 36% compared to 14% over the previous year. Professor, Haroon Bhorat, from the School of Economics and Development Policy Research Unit at the University of Cape Town says mining, manufacturing, construction, finance and retail have been hardest hit by the economic recession with more than 4 800 firms folding up.

He says a spike in retrenchments had become visible from May last year with 168 % of these registered in mining followed by 135 % in construction and 55 % in manufacturing. He says small firms; employing less than 50 people had been particularly vulnerable to the recession with more than 50 % of liquidations happening in the small to medium enterprises sector.

Govt to help recession stricken workers

Labour Minister Membathisi Mdladlana says the Department will release billions of rands to help thousands of workers who have lost their jobs to the current economic recession.

Mdladlana says the economic recession had definitely created an atmosphere of uncertainty and vulnerability. “My department is committing R2.4 billion to a training layoff scheme that will be launched in September.” The funds will be drawn from the resources of the Unemployment Insurance and the National Skills Funds. The training layoff scheme offers an alternative to workers under threat of retrenchment in companies that are in distress. Mdladlana was speaking at the three-day Annual Labour Law Conference which started in Johannesburg yesterday.

He said further details including those of a parallel scheme to bail out companies in distress through the Investment Development Corporation will be made at the formal launch next month.