• Inside Labour

    Government's farming policies have had a damaging effect, says Terry Bell.

  • Hunter feeling the heat

    The killer of Cecil the lion is now the one getting hunted - by outraged Americans.

  • Making media behave

    Is patriotic reporting another name for whitewashing corruption, asks Leopold Scholtz.

Loading...
See More

Growth path too vague on jobs: analyst

Jan 26 2011 10:45
I-Net Bridge
Johannesburg - The  government's new growth path provides "very little" guidance on the actual process of creating jobs within the sectors it has identified as job creating, said Rudolf Gouws, an economic consultant with Rand Merchant Bank, on Wednesday.

Gouws was addressing the Gordon Institute of Business Science's Economic Outlook 2011 conference.

The growth path, released late in 2010 and still under discussion, counts among its aims the goal of creating five million jobs by 2020 by focusing on sectors such as manufacturing.

It also calls for loose monetary policy and the capping of wage increases.

"It is not a growth strategy," Gouws said. "There's little recognition that a sustainable job is one that adds value and generates a return on capital."

The framework has also been criticised for its proposals on labour. A few amendments are currently being made to labour laws in the country.

"Wages (are) linked to inflation and not productivity, which is clearly a problem. Labour legislation is labour friendly but not employment friendly," Gouws noted.

The focus on the labour sector in SA is falling on labour brokers. Unions accuse the sector of exploiting workers, while those who advocate for the practice say it is helping to create employment for thousands.

On global recovery, Gouws said it would take a square root shape.

"There's a limit to the extent to which it (the global economy) can recover. The global economy is in a sense operating without a safety net," he concluded.

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
5 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About...

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Introducing tablets in schools is:

Previous results · Suggest a vote

Loading...