Crisis stifling job creation

Johannesburg - South Africa will have to wait a little longer for a "significant increase in new job creation" due to the current economic situation, President Jacob Zuma said on Thursday.

"It is not likely that the current reversal will last as long as the recession in the early 1990s, but our recovery might not be as strong as we might hope.

"Even if the economy begins to grow again next year, we will have to wait a little longer for a significant increase in new job creation," Zuma told black professionals at the Sandton Convention Centre.

The meeting was a follow-up to previous meetings in December last year and March this year.

"It always takes some time, even years after growth starts, for jobs to be created in significant numbers," he said.

In his state of the nation address earlier this year, Zuma said the country would generate around 500 00 jobs by the end of the year.

This scenario made the agreement between government and labour, business and civil society to respond to the global financial crisis, so important, he said.

"I will be meeting with the leaders of the teams developing and implementing the crisis response programmes early next month. That will be the time to assess our progress and consider the way forward," he said.

The president said a lot more work was needed to address the impact of the crisis on the poor and low-paid workers.

"I am confident that some of the measures already introduced and others in the pipeline will help to cushion the impact of the crisis for the most vulnerable."

He said South Africans needed to work together to meet the challenges of the current economic situation.

- Sapa