Data provided by iNet BFA
Loading...
See More

SA unemployment 'exceptional'

Aug 28 2012 12:30 Sapa

Related Articles

Way forward for SA

Mpumalanga creates most jobs

Govt eyes 14% unemployment rate by 2020

Marcus warns on joblessness

DA to make path easy for entrepreneurs

Gauteng MEC promises 1000 jobs in Nov

 
Johannesburg - The South African economy faces a major problem with its levels of unemployment, economist Chris Hart said on Tuesday.

"The reason for unemployment is internal more than external," he said in Johannesburg.

"Unemployment (in South Africa) is exceptional."

Hart, chief economist at Investment Solutions, was speaking at a Johannesburg Chamber of Commerce and Industry breakfast.

He compared South Africa's unemployment rate to that of Brazil. In 2002 joblessness in both countries started decreasing. Then came the 2008 global financial crisis.

The period between 2002 and 2008 generated many jobs. Brazil's unemployment rate decreased after this, but not South Africa's, he said.

"Polokwane also happened... and that's a problem," he said referring to the African National Congress' elective conference, held in Polokwane in December 2007, where President Jacob Zuma was voted in as ANC president.

"The unemployment rate suggests that we need to be looking at this as a national priority. I think job creation is one of our lowest policy priorities."

Hart said the only other countries with the same levels of unemployment as South Africa were Greece and Spain, who were in "deep crisis".

South Africa and Brazil were in the same position, but small business made a difference in Brazil.

Hart said talk about job creation never mentioned employer creation.

"The need is not five million jobs in 10 years. That's the most awful target I've ever heard of.

"The actual need, the solution, is 15 million jobs in 10 years... We need to create 15 million jobs and we actually need to create it in a shorter space of time, and I think it is possible."

Hart said for that to happen, policy needed to be changed. Between two and three million new small businesses needed to be created, he said.

* Follow Fin24 on Facebook, Twitter and Google+.


unemployment
NEXT ON FIN24X

 
 
 

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
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

“Hippie sense makes business sense,” an entrepreneur said, adding that "purpose" was core to success.
 

Money Clinic

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