25 June 2019

South Africa: Digitilisation Partly Blamed for Latest SA Job Losses

Johannesburg — THE loss of thousands of jobs, partly because of digitilisation, in South Africa in recent days, does not augur well for employment creation in the short term in the continent's most advanced economy.

This is according to an economist days after a broadcasting and pay television firm, as well as a bank, announced combined job cuts of over 3 200.

Multichoice, whose customers are increasingly using digital means to communicate with the company, announced this weekend's that over 2 000 employees in their call and customer service centres might face retrenchment.

Standard Bank, one of the country's biggest finance houses, announced the closure of a number of branches affecting about 1 200 jobs.

Siobhan Redford, economist at the Rand Merchant Bank (RMB), said while the increased use of digitalisation by customers was likely a significant contributing factor, it was possibly not the only factor as competition in these industries was increasingly coming from competitors using non-traditional business models.

"The timing of these announcements cannot be ignored either as they come in the wake of the weakest first quarter economic growth seen in over a decade in South Africa," Redford said.

The expert added, "This does not bode well for unemployment figures for the second and third quarter of 2019 as consumers remain under pressure."

The setback comes amid fears increasing digitalisation is raising fears of more job losses as it makes some roles performed by humans redundant.

South Africa

Troop Deployment to Cape Townships Vague, for 'Element of Surprise'

Although the army will be deployed to violence-plagued communities on the Cape Flats, the precise details of when they… Read more »

See What Everyone is Watching

More From: CAJ News

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.