Fin24

Cabinet targets huge unemployment drop

2010-10-26 12:20

Cape Town - The government said on Tuesday that unemployment should fall to 15% over the next 10 years from the current figure of 25% under a new economic growth plan.

The forecast implied the creation of 5 million jobs over that period, government officials said after a cabinet meeting to consider ways of reviving the performance of the economy.

The official jobless rate stood at 25.3% of the labour force in the third quarter of 2010, from a slightly downwardly revised 25.2%, Statistics South Africa said in its latest quarterly Labour Force Survey.

The total number of unemployed people was at 4.396 million in the three months to September, from a slightly revised 4.401 million in the second quarter.

South Africa hopes to boost its long-term growth via a weaker currency achieved through a "careful balancing" of more active monetary policy intervention, Minister in the Presidency Collins Chabane also said at the briefing to report back on the special cabinet meeting held on Monday.

"The macroeconomic approach entails a careful balancing of more active monetary policy interventions to achieve growth ... through a more competitive exchange rate and a lower cost of capital," Chabane said.

"The new growth path sets a target for creating five million jobs in the next ten years. This target is projected to reduce unemployment from 35% to 15%. This employment target can only be achieved if the social partners and government work together to address key structural changes in the economy," said Chabane.

Details would be progressively released as various affected parties became involved, but he said the plan aimed to be "unlocking employment potential" in six key areas.

These are infrastructure, agriculture, mining, the green economy, manufacturing and tourism, together with high-level service industries.

Chabane made the announcement of the plan together with Economic Development Minister Ibrahim Patel and Rural Development and Land Affairs Minister Gugile Nkwinti.

Patel said that more details would be released by Finance Minister Pravin Gordhan in his medium-term budget policy statement on Wednesday.

Asked if the plan included nationalisation, Patel said: "The growth path is based on the framework of a mixed economy. It does see a role for a strong and focused state."

He said despite the state's role, it was hoped the private sector would be the main generator of employment.

At the start of the press conference government spokesperson Themba Maseko ruled out any discussion about speculation President Jacob Zuma was reshuffling his Cabinet.

He said Cabinet reshuffles were not discussed at Monday's meeting, and any changes were Zuma's prerogative.

Comments
  • Topdog - 2010-10-26 12:31

    More pie in the sky. I'm so sick and tired of these morons sucking these plans and figures out of their thumbs and then expecting the sane and intelligent amongst us (not the ANC voters) to believe them.

  • jd - 2010-10-26 12:31

    In other words the unions have won. Interest rates are going down and are going to be kept down. So what is that going to do to the inflation rate, not to mention the independence of the Reserve Bank?

  • Danie - 2010-10-26 12:35

    Dont you mean "A less carefull balancing through more Active intervention?" Long term job creation flows naturally from economic growth, educating the labor force, and having a dynamic labor force, i.e. less stringent labour laws. As it stands, labour regulation causes companies to try and utilise the least amount of labour possible, to try and avoid the most amount of red tape possible. Depreciating the currency might work in the short run, but it causes SA to be less competitive in the long run.

  • Realist - 2010-10-26 13:00

    The unemployment figure has been around this figure for the last two decades. If the ANC plans are anything like their plans for Eskom upto the power crunch then I will reserve judgement. Leave the Rand alone ANC morons. The market will decide what it's worth.

  • Rick - 2010-10-26 13:01

    More govt hot air.How did china,India,Korea,Japan etc grow?....SCRAP THE UNIONS and have some basic labour laws. Let the workers be responsable for their actions.How do we expect to build a nation by playing nanny to the people.

  • sunny - 2010-10-26 13:19

    Sounds like more pie in the sky...have they just looked at the employment figures for the third quarter..we lost another 86000 jobs..so where do they get the idea of creating jobs..they need to stem the tide first

  • Chris - 2010-10-26 13:22

    If the government's only apparent solution to crushing unemployment is to simply devalue the rand....then our country is in deep trouble. No mention is made of politcised state supported unions chasing away foreign investment, archaic foreign exchange controls, restrictive and unfair labour legislation keeping our poorest people out of the workforce. The solutions are available but we will have to look further than the failed Keynesian economics of the western world. Disruption of the natural balance of currency movements will only end in greater misallocations of capital and entrench our poorest citizens in their state imposed caste. Government is not the solution, it is the problem. Wealth and prosperity are not created by the state but by the labour and entrepreneurial efforts of free men and women, the greater the state attempts to regulate and interfere, the poorer a nation will become. There is hope but it is does not lie in the illogical, unproven theories of John Maynard Keynes.

  • TT - 2010-10-26 13:25

    There goes our rates and taxes...for the ANC to achieve this, they will have ti use the Municipalities to absorb the jobless by creating departments and filling more posts....then, have us pay for it so it has NO impact on Govenrments coffers, the easiest quickest solution...watch it happen...Already there are drafts out on charging suburbs MORE for "extra" services like cleaning and fixing roads which we ALREADY are paying for..The ANC must do this else face HUGE problems before the elections..BUT the best part is, the middle income group is now predominantly BLACK...so, guess who is going to be funding this and, they don't even realise it...LMAO.....this the ANC will have to contend with soon...

  • Anon - 2010-10-26 13:32

    Promises. In the Apartheid govt we had Piet "Promises" Koornhof. Now we have this lot. This lot is gonna bleed the middle class to death to fund these maga illusionary projects they learnt from Maxist text books and discussions on the island. I suppose we have to wait and see what are the concrete plans Pravin comes up with.

  • Duke - 2010-10-26 13:37

    "He said despite the state's role, it was hoped the private sector would be the main generator of employment". How can this happen when we have to deal with the constant threat of nationalisation and more onerous labour laws? C'mon ANC, we need less hot air and a more stable regulatory enviroment before big and small business will put their money at risk! 5 million jobs in 10 years won't solve the problem - what about the 400,000 matriculants that enter the job market every year!

  • tbone - 2010-10-26 13:41

    How many times have we heard this before. Promises, Promises, promises. Until the ANC does not deploy a higher standard of cadre and educates its cadres in basic tuition of economics and anti-graft, i.e. that it employs leaders that think of the people and not of themselves, nothig will change. its does not help having the greatest ideas if you dont know how they will be implemented and how they work and have people that can implement them

  • tbone - 2010-10-26 13:41

    How many times have we heard this before. Promises, Promises, promises. Until the ANC does not deploy a higher standard of cadre and educates its cadres in basic tuition of economics and anti-graft, i.e. that it employs leaders that think of the people and not of themselves, nothig will change. its does not help having the greatest ideas if you dont know how they will be implemented and how they work and have people that can implement them

  • Jon Henry - 2010-10-26 13:43

    Time to legalize Hemp & Marijauna and reap the multiple benifits of this wonder product. Many Jobs will be created, industries will be uplifted. SA tourism will boost exponentially with the influx of foreigners coming to see our beautiful "Gold Coast" . I suppose a full economic plan for this needs to be laid out, but just from initial outset, it doesnt take a brain surgeon to see that this is a cash cow. Let go of any premonition that has been falsely instilled in you and recognize the potential and benefits and this will work.

  • ARI - 2010-10-26 13:44

    WHAT A JOKE! THESE CLOWNS HAVEN'T CREATED A SINGLE JOB IN THE PRIVATE SECTOR AFTER SIXTEEN YEARS IN POWER AND NOW THEY'RE GOING TO CREATE 5 MILLION IN 10 YEARS......GIMME A BREAK!!!

  • theo - 2010-10-26 13:46

    At a population growth rate of 2% notwithstanding illegal immigration, would add 5 million new job seekers to the current pool. That would make no difference to the unemployment rate. Where did Patel learn elementary Primary school Maths?

  • Sandile - 2010-10-26 13:54

    The one thing that the current government should learn is that the most difficult job to create is the first one (nett after the lost jobs have been accounted for). After 16 yrs, we are still waiting for them to achieve this goal.

  • theo - 2010-10-26 14:01

    At a population growth rate of 2% notwithstanding illegal immigration, would add 5 million new job seekers to the current pool. That would make no difference to the unemployment rate. Where did Patel learn elementary Primary school Maths?

  • Nasdaq7 - 2010-10-26 14:06

    So where is the growth plan?

  • Johnathan - 2010-10-26 14:14

    It's as if the ANC does not understand the concept of a trade-off. If you spend money on one thing, it means you can't spend it on something else. If you take one extra rand tax from me, it means that I can't spend (or even better, save) that extra rand. If you devalue the currency, yes, some exporters will be better off, but people who add value to imported products will be worse off, as well as consumers. There's always a trade-off, guys! You are killing the goose that lays the golden eggs.

  • Jane - 2010-10-26 14:14

    Government policies are busy destroying the mining industry, so tell me where are the jobs going to be created????

  • Nasdaq7 - 2010-10-26 14:27

    Let me see: they don't work harder, more hours or smarter. Government just devalues the value of our currency and ... all our unemployment problems are solved...

  • Paul - 2010-10-26 14:43

    The only certainty in our Goverment is that nothing will change as no one is capable of making a decision.Unless it suites themselves.Some ideas for the ANC ,look at Namibia's incentives: 1.100 % depreciation on Capital expenditure in first year. 2.Double deduction on wage bill for tax purposes.

  • Rudu du Plessis - 2010-10-26 14:50

    I do not have a problem at all with the Goverment of the day aiming to create more jobs. I run a small transport business and would easily employ more people if the chance arise, yet my biggest client s the goverment and other BEE Fims, who are not paid on time by the goverment. The impact this has on our cashflow, negates any growth for in my business as well as employment opportunities.

  • M - 2010-10-26 15:03

    Yeah right!

  • A R Soal - 2010-10-26 15:11

    I just recently retuned from vacation in Mautitius where unemployment is about 5%. The salary of a bus driver is approx R2500 a conductor R2000 a hotel worker barman cleaner etc R 1500. Tips are not expected. A salesman on the beach can earn between R2500 and R3000. The point is salaries are low so everyone can earn a living but if you entrepenuer you can earn more. Corruption is at a minimum. I employ approximately 55 people and won't employ just for the sake of creating a job my policy is FIFO or rather fit in or F%%% off. The attitude of workers here is why make my boss rich and the boss needs me actually its the other way around with so many people out of work.

  • Barry - 2010-10-26 15:19

    "The growth path is based on the framework of a mixed economy. It does see a role for a strong and focused state." The ANC want to do something that was unsuccessful in each and every country that experimented with Marxism/Leninism. The latest news in September 2010 from Cuba is as follows: "Our state cannot and should not continue maintaining companies, productive entities, services and budgeted sectors with bloated payrolls [and] losses that hurt the economy," said the Cuban labour federation, which announced the news. "Job options will be increased and broadened with new forms of non-state employment, among them leasing land, forming co-operatives and self-employment, absorbing hundreds of thousands of workers in the coming years,” it said. ------------------------------------------ “He said despite the state's role, it was hoped the private sector would be the main generator of employment.” The SACP led ANC/COSATU alliance speaks with a forked tong. On the one hand they want to appease the private sector and on the other hand they threaten everybody from farmers to mining companies with nationalisation without due compensation and instant death by insisting to further popularise their war song “shoot the boer, shoot the white man because they are rapists.” Millions of people live and work in fear in SA. Amongst others 17000 to 18000 and more murders per annum and hundreds of sexual assaults per day tell part of the bloody situation in which we find ourselves in the post-apartheid South-Africa under pseudo communist rule. Due to amongst others the ongoing National Democratic Revolution (NDR) in the work place, the racist AA, BEE and Cadre Deployment policies of the ANC as well as labour legislation without a sunset clause that effectively bar thousands of white male workers from ever re-entering the labour market ever again, nobody in his right mind will appoint, train and develop more people than the bare minimum truly productive workers, because anything more will amounts to assisting your executioners with your own execution. Employers want productive workers and not new family members. In accordance with the mandate that the ANC requested and overwhelmingly received from the electorate the only way forward in accordance with the communist inspired Freedom Charter of 1955 and racist National Democratic Revolution (NDR) is the immediate expropriation of all white owned farms and mines without due compensation. Furthermore, the ANC’s NGC in Durban a fortnight ago resolved that nationalisation must be expedited. The threatened agriculture and mining sectors that are regularly accused of maltreatment and “underpaying” their employees in a generalised fashion by the members of the ruling alliance are now (again?) expected to unlock “employment potential.” What gives the President and his Cabinet the idea that the threatened parties will truly want to co-operate except for paying lip service to poverty alleviation? This situation reminds one of one of the old dictums of the Russian workers that used to say that whilst their bosses pretend to pay them, they will pretend to work for them. In SA prospective investors and employers say as long as the SACP led ANC/COSATU alliance pretends to need and protect us we will pretend to "serve" them. Furthermore, it is unacceptable that the racist NDR targets ordinary workers, farmers, business people and their children that do not enjoy any special rights whilst simultaneously protecting kings and other traditional leaders and their people that enjoy banal rights and immunities that unproductively occupies millions of hectares of the most arable land in the country that have perfected tax evasion and the non-payment for services such as health care and the education of their children, popularly presented to the rest of the world as “poverty” as a way of living. The ANC can hold on to the Freedom Charter and the racist NDR as well as their intolerant Tactics and Strategy that perpetuates racial hatred as per the 2007 Polokwane Conference, just as the NP at the time held on to statutory apartheid to everybody’s detriment or they can lead us to prosperity. Both alternatives are not open to them and they need to make tough choices. I wish that they will come to their senses rather sooner than later.

  • Mike - 2010-10-26 15:23

    Just have a look at what has happened to the stockmarket today after this idiotic announcement.

  • Michael - 2010-10-26 15:29

    Hope it works. China got milions out of poverty, so can RSA.

  • Andre Niemand - 2010-10-26 15:35

    I wonder when somebody is going to address the impact that illegal immmigrants are having on the job market.I found that more and more of my friends are emploing Zimbabwam people as domestics and or contract wor54kers as they are PREPARED TO WORK.

  • Property Idiot - 2010-10-26 15:45

    ZUMA GIVE US THE 1000 000 JOBS You promised 1st the give us the 1500 000 you lost since your election then worry about the rest !!!!

  • DW - 2010-10-26 15:46

    Well the market (all the employers) just loved this speech. It lost 1% today - this is faith the private sector has in the ANC and it's obviously imminent nationalisation poilicies.

  • Property Idiot - 2010-10-26 15:52

    Zuma has just returned from China, one can just imagine the tips they gave him how to run a economy with 10% growth. They forgot to tell him that he needs chinese people to help him, or maybe he agreed to swap some of our unemployed for some of theirs 100 of our for every 1 chinese !!!!

  • DeonL - 2010-10-26 16:03

    The ANC and Cosatu does not have a clue to get more people working. Maybe they should give tax relieve to big companies and big earners as they supply more work than Gov, also link yearly increases to inflation.

  • scud - 2010-10-26 16:16

    Annual growth of 7%-unemployment at 15%---NHI costs of R250b---"Jacob and Pravin in Wonderland"

  • Rick - 2010-10-26 16:18

    call back the colonialist to sort out the country and get done with it. We all know that industry does not want to employ because of the labour laws. As long as Vavi's and Craven's pockets are full they will keep shouting down anything constructive to further destroy the country.

  • Eugene - 2010-10-28 08:40

    i cant wait for the current administrator to finish their term cause things are getting worse in our country.they are busy employing more police that are not qaulified but still crime is our most biggest problem.unemployment increases crime we all know that,insteat our unions want sallaries increased not looking at the bigger picture,strike to get more people to be employed.the poor are getting worse and the rich get more rich this has been going on for 15yrs and still cant find a solution,just except it u dont know what are u doing, ask for some help.we choose u to be our leaders,now show us u can have what it takes to lead.

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