Growth path too vague on jobs: analyst
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.
This must be one of the best quotes of 2011 so far: "There's little recognition that a sustainable job is one that adds value and generates a return on capital."
That is the entire problem with Cosatu/SACP/Government's thinking about anything economic in nature.
Well said Johnathan. It is the usual hot air announcement by Govt to hopefully gain points. BS baffels brains theory. Eskom alone (with the assistance of Cosatu)is restraining industrial investment in SA and cosatu still have to attack Walmart for wanting to contribute to investment growth and jobs.
As long as we have the current unions and unreasonable labour laws it will restrict investment and jobs but the air heads can't see it.
Two words make aa successful industrial country, "you're fired" and makes staff accountable for their actions.
the anc actuallry creates more poverty and unemployment through its policies
Why are we all so blind? Why do we blame the govt/economy/unions for our own blind faith in the money system we are trying to keep in place.
Its time for everyone to stop being afraid and to stop being too lazy to take the debate to the logical conclusion - things are NOT going to get better. We have to change the system and culture of consumption and money. The end of any problem is after all...money.
@Ryan i think lets ask the gvmnt/union to plead on our behave to the financial institutions that all debts be scrapped completely and everyone of us gets a refresh that way we will solve all this problems