Critics blame govt for high unemployment | Fin24
 
  • Credit Rating

    'I think Moody's will be happy' - President Ramaphosa says plan to deal with Eskom's debt is imminent.

  • 'No Basis in Fact'

    The PIC commission has slammed Iqbal Survé’s claims about Minister Pravin Gordhan.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Critics blame govt for high unemployment

Oct 27 2015 21:30
Siseko Njobeni

Cape Town - Government economic policies are to blame for the rising unemployment rates in South Africa, economists said on Tuesday afternoon.

Reacting to Statistics South Africa’s release of the third quarter Quarterly labour force survey, Azar Jammine of Econometrix and Francois Stofberg of Efficient Group were critical of government policies.

“Government economic policies are clearly not working,” Jammine said. Despite this, there is still an inclination to encourage government intervention, he said.

The survey showed that unemployment rate in the third quarter of this year increased marginally by 0.5%, compared to the second quarter. This increased the unemployment rate to 25.5%.

Stofberg said there was little done to break what he termed structural unemployment, which has remained at around 25%.

Since 2008, government policy has not been alleviating unemployment, he said.

Globally, most jobs are created by the private sector. In South Africa, government policies have hampered private sector’s ability to create jobs, he said. “We have not given the private sector the opportunity to create jobs,” he said.

Stofberg blamed red tape, inefficiency and rigid labour policies for the private sector’s inability to create jobs. “Labour legislation has been detrimental to business growth in South Africa,” he said.

The Democratic Alliance (DA) said the country would only stop shedding jobs if it provided an incentive for the private sector to invest “so that we can grow the economy and create jobs for the millions of South Africans trapped in unemployment”.

jobs  |  sa economy
NEXT ON FIN24X

 
 
 
 

Company Snapshot

#MINIBUDGET2019

Struggling power utility Eskom will take centre stage at this year's mini budget
 

Money Clinic

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

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...