Zimbabwe to shed over 50k jobs

ZIMBABWE’s formal sector is expected to shed over 50,000 jobs by year end amid a contracting economy as companies take a knock from the effects of the Covid-19 pandemic, Business Times can report.

The projected job losses come after various local firms have been trimming workers to contain costs in the wake of suppressed revenue inflows.

Economist Tony Hawkins told Business Times the Covid-19 pandemic has seen a huge chunk of temporary workers being laid off and some taking huge pay cuts despite a difficult operating environment.

“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,” Hawkins said.-

Read More: BusinessTimes