Fin24

Not enough jobs being created: Patel

2011-08-25 07:57

Johannesburg - Jobs were not being created fast enough to absorb the rising labour force, Economic Development Minister Ebrahim Patel has said.

Taking questions in the National Assembly, he said that this was despite two consecutive quarters of creation.

According to a report in The Times, Patel said that up to 64 000 new jobs had been created in the last three months and that 150 000 jobs had been created in the nine-month period since the adoption of government's economic policy called the "New Growth Path".

However, he pointed out that in the first two quarters of the year some 200 000 new job seekers had entered the market in each quarter.

"We are not creating enough jobs to take into account the rate of growth of the labour force," he said.

Patel pointed out that 42 000 jobs had been lost in the agricultural sector, but that the informal sector had created 41 000 jobs.

The New Growth Policy aims to create 5 million new jobs by 2020.

Patel also said that target "was always a stretch target, especially for an economy with such high levels of unemployment."

At least 27% of South Africa's workforce was currently unemployed and, according to some, such as the Congress of SA Trade Unions, this actually could be as high as 40%.

 

Comments
  • Mike - 2011-08-25 08:10

    Instead of spending money on changing road names and airport names, use the money to build factories. Training factories that will take people off the street and teach them a skill...ie: carpentry. That will be a start. STOP government corruption. AND place a limit on how many kids people can have...ie: In the squatter camps - DON'T HAVE ANY KIDS !!!!

  • Derek Watts - 2011-08-25 08:12

    Maybe if you incentivise people (mostly whites) who has the skill and experience to start and develop businesses then you can create jobs. The only way to create jobs is to stimulate the private sector. The government shouldn't create jobs, they should simply facilitate the growth of the private sector. That will in turn create more employment.

  • Derek Watts - 2011-08-25 08:16

    The only way to create jobs is for the government to stimilate growth in the private sector via incentives. This in turn will automatically create more jobs.

  • Danie B - 2011-08-25 08:26

    Somewhere something is wrong. How many jobs were lost in total, not only in the agricultural section? The overall figure of jobs losses is much more than jobs created. It is of absolutely no use to "create" 5 million new jobs but 10 million people loose their jobs.

  • BUSINESSMAN - 2011-08-25 08:36

    Two reasons for no jobs: 1) people having 10+ children; 2) taxing, toll, soaring electrical and petrol costs, NHI etc which are milking the people who can create jobs dry.

  • Rich - 2011-08-25 08:36

    What has this guy been smoking???????

  • Thingamebob - 2011-08-25 08:38

    There are hundred;s of us out there that want to grow our companies and hire more people but all the jobs go to Malemba and his pals.

  • gcr - 2011-08-25 08:39

    Patel and his merry men will never achieve the target because they have no plan showing the little steps to success. They are long on pontification but very short on delivery. Address the draconian labour laws, encourage new businesses to open and start off being labour intensive and allow tax rebates for remaining labour intensive, institute apprenticeships and other types of trade skills upgrading so that these people can start their own little companies. Come on Patel and get with the program

  • Marcel Huggler - 2011-08-25 08:44

    What "New Growth Path"? As a small business owner that is not doing financially well, I asked myself what exactly is the Government doing to try and boost the economy? At this stage, if our current economic situation doesn't improve, we will have to close the doors and add another 5 people to the ranks of the unemployed.

  • Cassander - 2011-08-25 08:44

    Another minister stating the blindingly obvious. Will he do anything about it? Oooh, that's hard, let's have a conference about it.

  • Marius Claassen - 2011-08-25 08:46

    agree we need answers we all know not enough jobs created minister please create enviroment for job creation what?change the rules,train students starting at school,stable political future

  • Nasdaq7 - 2011-08-25 08:47

    Everyone has just stopped working and is waiting for their government hand-out.

  • Horza - 2011-08-25 08:50

    So.. Patel is saying that he cannot do his job.

  • Malema fan - 2011-08-25 08:55

    Where does this Patel Clown get his numbers from we lost over 500k Jobs for 2011 so if you want to say that the NGP must create 5 mil jobs then it must be 5mil + the ones you lost since there plan was introduce - so!!! sorry Mate your numbers tell me alot about your action plan.

      rudebear - 2011-11-01 19:27

      The poor administration of Eskom created a ekonomic slump in this country that will take decades to erase. We are fast becoming a exporter of raw materials because of our lack of capicity. The only ones smiling are the Chinese.

  • Appietrader - 2011-08-25 08:58

    This stubborn government won't learn, jobs cannot be created when you have unions bashing up everything. Rein them in and people will get jobs, easy as that!! The peolple are the sufferers not the government with their fatcat salaries, that think they know best for the people.

  • 4_Way_Test - 2011-08-25 09:01

    And tell me Mr. Minister, WHY ?

  • GSXA - 2011-08-25 09:02

    Mr Patel, one of the ways I would suggest we create jobs is by revisiting our labour laws which are certainly not competitive enough to attract investment in order to create more jobs. Yes we need to ensure that workers are not exploited but we need to find a balance and therein lies the challenge.

  • Pericles - 2011-08-25 09:07

    There possibly needs to be a rethink about the above figures. I am open to correction but I would 'guess' that there are about 20 million people, in SA, under the age of 20. Therefore, simply put,every year for 20 years, approx 1 milion people 'need' jobs. If 500,000 go to university each year then only 500,000 need jobs. There are relatively few people over the age of 50 (in relation to those under 20) and many may not be currently working - therefore this group will not be the 'source' of jobs as the over 50's slowly leave the labour market.

      Pericles - 2011-08-25 10:05

      And I have not included the currently unemployed.

      BM123 - 2011-08-25 12:11

      @Pericles - the 500000 going to university will also need jobs - just delayed by 3 to 5 years - so we still need 1m jobs a year

      Pericles - 2011-08-25 14:25

      @BM123. You are absolutely correct. My main point was the population under 20 years of age. A quick review of population stats will confirm the numbers. However, the impression rightly or wrongly is that "no one" seems to take cognizance of these numbers and the implications. Universities and the mantra that "IT, internet" will solve all is a red herring. In the current situation "trade schools" and old fashioned apprentiships are part of the solution. However, apprentices need both a firm and a skilled, patient teacher/mentor.

  • Nasdaq7 - 2011-08-25 09:13

    poep

  • SilverSurfer - 2011-08-25 09:13

    ban the trade unions and watch this number increase ....

  • scud - 2011-08-25 10:23

    Thereare 2 things the minister is not saying: 1.More jobs have been lost than created (convenient to avoid this). 2.Minister Patel does not know what he is doing.

  • Nasdaq7 - 2011-08-25 12:12

    The government and the private sector should come together and talk.

      rudebear - 2011-11-01 19:20

      To much talking and too little action going on. We South africans are excellent in talking and terrible at DOING.

  • Peter Müller - 2011-08-25 13:45

    Mr. Patel, why do you sound surprised? It was predictable that we will not create jobs but rather erode our employment opportunities. While the rest of the world is experiencing the same problem, mainly due to the global recession(s), ours is sadly a self inflicted wound. And this wound we have to continue to suffer until we learn some of the “real” realities of life and change how we think and manage our problems. (it’s been 17 years . . .).

  • R Albert - 2011-08-26 15:31

    Patel should worry about the needless jobs being lost as SA de-industrializes

  • john_jones - 2011-08-30 20:07

    Mr Patel , You can fool some of the people some of the time and all of the people some of tbe time but this time you fool nobody. The truth of the matter is that you have no intention whatsoever of 'creating jobs'. Your agenda is to stay on the gravy train. ne ?

  • pages:
  • 1