Schussler estimated that for every white-collar job lost to the lockdown, up to 10 blue-collar jobs could be lost.
He said the expanded unemployment rate could leap from its current level of just below 40% to closer to 50%.
Schussler noted that the economic decline caused by the lockdown was worsened by a number of factors, including high interest rates, high levels of unemployment and policy uncertainty, especially on such issues such as the expropriation of property without compensation.
Schussler said economic activity in March was about 55% of normal levels, while electricity consumption matched levels last seen more than a decade ago.
The service industry would be particularly hard hit by this decline in economic activity.
For the country to sustainably escape the crisis, and as a matter of urgency, Schussler said SA must transition to a soft lockdown.
He said factories and shops must be opened while enforcing physical distancing.
Schussler said restaurants should be allowed to offer takeaways if not opened fully, and people should be encouraged to wear masks in public.
He also argued that there should be a public transport subsidy which would mean taxis could afford to transport fewer passengers than they usually would.
SA must transition to soft lockdown to escape economic crisis: economist
Image: 123RF/betonstudio
SA has to find a way to exit the hard lockdown as a matter of urgency because a continuation would amount to "unsustainable madness".
This is the view expressed by economist Mike Schussler when he addressed a virtual briefing hosted by the Institute of Race Relations about the economic impact of Covid-19.
He said extending a hard lockdown - which began on March 27 and is expected to last until the end of April - would see more South Africans pushed into poverty.
Schussler said the lockdown had starkly illustrated the "digital divide" in South Africa.
On one side there were white-collar workers who could generally carry on with their activities by working from home. On the other side were blue-collar workers, ranging from cashiers and waiters to factory workers, hotel staff and hairdressers, who had no way to earn a living during the lockdown.
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Schussler estimated that for every white-collar job lost to the lockdown, up to 10 blue-collar jobs could be lost.
He said the expanded unemployment rate could leap from its current level of just below 40% to closer to 50%.
Schussler noted that the economic decline caused by the lockdown was worsened by a number of factors, including high interest rates, high levels of unemployment and policy uncertainty, especially on such issues such as the expropriation of property without compensation.
Schussler said economic activity in March was about 55% of normal levels, while electricity consumption matched levels last seen more than a decade ago.
The service industry would be particularly hard hit by this decline in economic activity.
For the country to sustainably escape the crisis, and as a matter of urgency, Schussler said SA must transition to a soft lockdown.
He said factories and shops must be opened while enforcing physical distancing.
Schussler said restaurants should be allowed to offer takeaways if not opened fully, and people should be encouraged to wear masks in public.
He also argued that there should be a public transport subsidy which would mean taxis could afford to transport fewer passengers than they usually would.
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