Employment affected relatively less than revenue
PHILLEPUS UUSIKU
The impact of the Covid-19 related regulations on employment was not as severe as on the company’s revenue.
According to the private sector development survey (PSDS) for 220/2021, over 600 businesses from all regions were surveyed, of which 55.9% of respondents indicated that there had been no change in the number of employees. This holds throughout all categories of companies in different sectors.
However, 36.1% of companies indicated that they had to reduce employment levels by between 50% and 100% and an additional 5.8% by up to 49%.
Only 1.6% of the total respondents increased employment by up to 25% and 0.7% of the businesses by more than 25%, the survey pointed out.
Employees of micro enterprises were most at risk of being laid off. The survey indicated that 41% of micro enterprises reduced the workforce by 50%. Enterprises in the small, medium and large categories indicated that they had to reduced their workforce each by 36.1%,20% and 11.1%, respectively.
Employees in the construction, accommodation and restaurant sectors faced the highest risk to lose their jobs, while mine workers faced the lowest risk.
Revenue
Revenue of 40.1 % of responding businesses dropped by 90%, while for a further 41% between 50% and 89%. Hence, 81.1% of businesses experienced a decline in r4evenue of at least 50%.
85.9% of micro enterprises experienced a decline in turnover of at least 50%. The main beneficiaries of the rising turnover were businesses operating for 10 years and more. A quarter of mining companies experienced an increase in turnover and 9.5% of agricultural business.
Respondents from the transport, financial services and education sectors reported declining turnover with 90% of businesses in the education sector experiencing a drop between 50%, 100%, and 88.2% for the transport sector. As for the hospitality sector, 85.7% of the respondents also experienced a decline in turnover. Only 2% of respondents in the hospitality sector did not experience any change in turnover.
The impact of the Covid-19 related regulations on employment was not as severe as on the company’s revenue.
According to the private sector development survey (PSDS) for 220/2021, over 600 businesses from all regions were surveyed, of which 55.9% of respondents indicated that there had been no change in the number of employees. This holds throughout all categories of companies in different sectors.
However, 36.1% of companies indicated that they had to reduce employment levels by between 50% and 100% and an additional 5.8% by up to 49%.
Only 1.6% of the total respondents increased employment by up to 25% and 0.7% of the businesses by more than 25%, the survey pointed out.
Employees of micro enterprises were most at risk of being laid off. The survey indicated that 41% of micro enterprises reduced the workforce by 50%. Enterprises in the small, medium and large categories indicated that they had to reduced their workforce each by 36.1%,20% and 11.1%, respectively.
Employees in the construction, accommodation and restaurant sectors faced the highest risk to lose their jobs, while mine workers faced the lowest risk.
Revenue
Revenue of 40.1 % of responding businesses dropped by 90%, while for a further 41% between 50% and 89%. Hence, 81.1% of businesses experienced a decline in r4evenue of at least 50%.
85.9% of micro enterprises experienced a decline in turnover of at least 50%. The main beneficiaries of the rising turnover were businesses operating for 10 years and more. A quarter of mining companies experienced an increase in turnover and 9.5% of agricultural business.
Respondents from the transport, financial services and education sectors reported declining turnover with 90% of businesses in the education sector experiencing a drop between 50%, 100%, and 88.2% for the transport sector. As for the hospitality sector, 85.7% of the respondents also experienced a decline in turnover. Only 2% of respondents in the hospitality sector did not experience any change in turnover.
Comments
Namibian Sun
No comments have been left on this article