COVID-19 and day labourers in the South African economy: The impact on their lives and livelihoods

COVID-19 and day labourers in the South African economy: The impact on lives and livelihoods The impact of the COVID-19 pandemic is currently reverberating throughout the South African economy -- including the informal economy and those on the brink of the formal economy, such as day labourers. Even before the start of the pandemic, the South African economy was already in an extremely vulnerable position due to a number of multidimensional factors, for example the global financial crisis of 2008 as well as a decade of corruption and looting of state resources. Day labourers are particularly vulnerable to exogenous shocks such as the COVID-19 pandemic. Against this background, the aim of the overview study was to place the possible impact of the COVID-19 pandemic on the living conditions of informal workers such as day labourers on the research agenda. The methodology was twofold. Firstly, the only available nationally representative database from a study by Blaauw (2010) on activities of day labourers in South Africa was used as a summary starting point with regard to the socio-economic position of day labourers. Secondly, in the second part of the analysis we used the latest available research information on changes in the day labour market to identify the factors that have changed the socio-economic conditions of day labourers in South Africa in the last decade. The possible short-, medium- and long-term impact of the COVID-19 pandemic was discussed against this background. The results of the starting point analysis among day labourers in South Africa confirm that in 2008 the day labourers in the Western Cape and Gauteng were comparatively better off than the day labourers in some of South Africa's less prosperous provinces. Their wages were higher in all the income variables that were part of the study. Despite this relatively better situation, even day labourers in the strongest possible position were still vulnerable with low and uncertain income levels, the risk of not always being able to provide for them and their dependants' needs, and an inability to plan ahead as a precaution against future exogenous economic shocks. These shocks did indeed come. Since 2008, macroeconomic shocks such as the global financial crisis and a declining mining and construction industry have put the day labour market under further pressure. A decade of looting and mismanagement of the South African economy as well as a third wave of cross-border migration led to a further deterioration of the day labour market's ability to meet the material needs of tens of thousands of day labourers in South Africa. Increased unemployment as well as declining real and reservation wages among day labourers occurred across all provinces in South Africa, and studies in East London, Tshwane, Emalahleni, Mbombela, Cape Town and Paarl clearly show the deteriorating socioeconomic conditions of day labourers in the last decade (Theodore, Pretorius, Blaauw & Schenck, 2018;Mapendere, 2019;Xweso, 2019;Schenck, Blaauw & Matthee, 2020;Smith, 2020). Day labourers' vulnerability has therefore deteriorated dramatically since 2008 and the advent of the COVID-19 pandemic has created the perfect storm in the day labour market. The COVID-19 pandemic has left tens of thousands of day labourers facing the real prospect of economic hardship and starvation and a desperate need for help. Day labourers are in fact worse off than the informal self-employed, such as informal reclaimers, who have at least a voice through industry organisations such as Plastics SA, the South African Waste Pickers Association or the African Reclaimers Organisation. The South African Government has announced measures to mitigate the socio-economic impact of the pandemic. Theoretically, many of the day labourers could have benefited from the COVID-19 Social Emergency Relief Grant of R350 per month that has been paid to the unemployed since President Ramaphosa's announcement on 21 April 2020. However, this payment came to an end in April 2021. The short-term impact of the COVID-19 pandemic on informal workers and day labourers was therefore nothing short of catastrophic. In the medium term, further pressure is likely to be put on the day labour market due to the many people who have lost or are about to lose their formal jobs because of the devastating effects of the COVID-19 pandemic. A resultant oversupply of day labourers will have a further devastating effect on day labourers' lives and livelihoods -- even after the pandemic has been brought under control. Day labourers' reservation wages will be pushed even lower due to day labourers' desperation to be able to work at all. This negative impact could be further exacerbated in the long run as thousands of pupils, who are currently dropping out of school in the midst of the pandemic, will have no choice (other than crime) but to turn to the informal day job market. The situation in the day labour market is therefore already critical and can only have further devastating consequences for the social order and social cohesion in South Africa. South African society urgently needs to reflect on these issues. The riots and looting in July 2021 are prima facie proof that the social order is already under tremendous pressure. Academics also have a role to play in the process of reflection and reconsideration. There is an urgent need for nationwide research on the day labour market and other forms of informal employment and self-employment. New nationwide data (using a similar methodology), as well as other forms of participatory research, are needed to gain an understanding of the impact of the events of the past ten years on the lives and livelihoods of informal wage earners. A crisis such as the COVID-19 pandemic has once again highlighted the plight of the marginalised and vulnerable in South Africa's unequal society. (English) [ FROM AUTHOR] Die Suid-Afrikaanse ekonomie was reeds voor die COVID-19-pandemie in 'n benarde posisie. Dagloners en andere in die informele ekonomie was struktureel selfs meer kwesbaar vir so 'n eksogene skok. Die doel van hierdie oorsigstudie was om die impak van die COVID-19- pandemie op die lewensomstandighede van dagloners op die navorsingsagenda te plaas. 'n Oorsig van tersaaklike elemente uit die enigste nasionaal verteenwoordigende databasis van dagloners, afkomstig vanuit die Blaauw (2010) studie, in Suid-Afrika, was die vertrekpunt. Daarna is die jongste beskikbare navorsingsinligting oor veranderinge in die daglonermark gebruik om die moontlike kort-, medium- en langtermynimpak van die pandemie te bespreek. In 2008 was die dagloners in die Wes-Kaap en Gauteng se loonvlakke hoër as dié van die dagloners in die res van Suid-Afrika. Selfs dagloners in hierdie twee provinsies was steeds kwesbaar met lae en onsekere inkomstevlakke. Sedert 2008 het makro-ekonomiese faktore en 'n derde golf van oorgrensmigrasie 'n verdere verswakking in dagloners se posisie meegebring. Die vraag na hul arbeid het verminder en reële lone het in verskeie stede gedaal. Die COVID-19-pandemie het dagloners op die kort termyn voor hongersnood te staan gebring. Die talle mense wat vanweë die pandemie hul formele werk verloor het of nog gaan verloor sal die daglonermark onder verdere druk plaas. Die minimum loonvlak waarvoor dagloners bereid is om te werk, sal selfs verder daal. In die lang termyn kan duisende van die leerlinge wat hul skoolopleiding te midde van die pandemie staak ook dagloners word, met rampspoedige gevolge vir die maatskaplike bestel in Suid-Afrika. (Afrikaans) [ FROM AUTHOR] Copyright of Tydskrif vir Geesteswetenskappe is the property of Suid-Afrikaanse Akademie vir Wetenskap & Kuns and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full . (Copyright applies to all s.)

Inequality among the informally wage-employed in South Africa - implications for the impact of exogenous shocks on lives and livelihoods

South Africa's business cycle saw the end of a 99-month upswing in November 2007. Average real GDP growth was three per cent between 1995 and 2005. However, the formal labour market was unable to absorb the increasing labour supply. Thousands of unemployed men resorted to informal wage employment as day labourers. Day labourers are particularly vulnerable to exogenous shocks such as the COVID 19 pandemic. We critically reflected on and analysed the spatial inequalities in the socioeconomic circumstances of day labourers at provincial level and contemplated the impact of exogenous shocks on their lives and livelihoods. We used the only nationally representative database on day labour activities in South Africa as well as the latest available micro-studies. Whilst the empiricalfindings indicated that gardening, loading and unloading, bricklaying assistance, construction and painting were the most common activities of these day labourers, focusing on provincial differences and inequalities, we found that day labourers in the Western Cape and Gauteng on average enjoyed shorter work hours, shorter tenure as day labourers, but higher wages than those in South Africa's economic weaker provinces. Since 2007, economic shocks and a new wave of migration have led to increased unemployment as well as declining real and reservation wages among day labourers across all provinces in South Africa. The COVID 19 pandemic's long-term implications are not yet clear but there may be a worsening of the livelihood and provincial inequalities of the day labourers. However, the short term implications for day labourers in the whole of South Africa are nothing short of disastrous. As a result of declining demandfor their labour because of COVID 19, day labourers face economic hardships and even starvation. Government's relief efforts may not be sufficient in terms of their depth and reach. New countrywide research is urgently required to provide coordinated policy responses to the plight of the informally wageemployed in South Africa.