Govt eyes 14% unemployment rate by 2020

2012-08-15 11:08

Cape Town - South Africa needs to take tough decisions involving compromise and trade-offs, according to the revised National Development Plan (NDP) handed to President Jacob Zuma on Wednesday.

The document contains recommendations to government by the National Planning Commission (NPC) on how to tackle the country's challenges over the next 20 years.

Key proposals on the economy and employment include raising exports, while taking steps to prevent excessive overvaluation of the currency.

The 484-page document also calls for improving skills development, and breaking disincentives to hiring young people, as well as increasing competition and breaking monopolies.

The NDP also says there is a need for the high cost of transport and logistics to be addressed, in a bid to tackle spatial divides.

It also focuses on strengthening the social wage in order to raise the living standards of the unemployed and those with lower paying jobs.

"Rising rates of investment will be achieved initially through state spending on infrastructure. The focus needs to be on infrastructure that promotes efficiency in the economy, and reduces costs for business and for individuals."

Labour market reforms are included in the NDP, but no drastic overhaul is suggested. Proposals on reducing tensions in the labour market are modest.

The public sector is the largest employer and the plan recognises the damage the current manner of managing disputes in essential services, such as health, education and policing, does not foster productivity.

"The current system neither discourages strike action, nor inspires confidence in other ways of addressing disputes and grievances.

"The determination of appropriate sanctions are required where essential services and minimum service level agreements are not upheld.

"Similarly, expectations of the state as employer to implement agreements on wages and conditions are required, and appropriate sanctions set where these are not implemented timeously."

Among the NDP's more ambitious targets is decreasing unemployment to 14% by 2020, and 6% by 2030. The plan says this could be achieved through the promotion of employment in labour absorbing industries.

"Some 90% of jobs will be created in small and expanding firms."

In order for this to happen, regulatory reform would be needed to drive entrepreneurship, and the cost of doing business would have to be lowered.

The NDP also proposes some short- to medium-term interventions on how the country should respond to the current global economic crisis.

"Government needs to build in macro-policy to enable South Africa to counteract the effects of the financial crisis," it states.

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  • louwhan.hoffmann - 2012-08-15 11:18

    That can be done providing we have mass emigration, millions die and zero birthrate for the next 8 years.

      chris.novak.9235 - 2012-08-15 11:29

      Funny Louwhan!

      charlesdumbwin.dumbwin - 2012-08-15 11:36

      Another wishy washy pipedream promise that the ANC will NEVER fulfill. SA public eyes 84% ANC corruption by 2020.

      goyougoodthing - 2012-08-15 11:50


      alan.gernet - 2012-08-15 11:55

      Well - this just highlights how stupid the 'powers that be' are! Nowhere in the world can this be achieved, least of all in RSA, where our productivity index has just hit all ALL TIME LOW indicating the useless and lazy nature of the workforce in general! Never mind the fact that the situation in SA is getting worse by the day because of the population explosion. Still -- we continue to breed like rabbits and strike for more pay for less work! Talk about defaecating on your own doorstep! So to the anc with this new lot of 'election' rhetoric, I wish you the best of British luck!

      JohhnyBGood - 2012-08-15 12:00

      I checked the date, and I was wrong. I thought it was the 1'st of April. Mannnn, I had a good laugh now! Raising exports ??? Hahahah, with all the strikes and labor disputes, no-one wants to invest here anymore. Pipe-dreams, all wishy-washy.

      Desilusionada - 2012-08-15 12:44

      Agree! totalis et internecionem taurus stercore

      alan.gernet - 2012-08-15 12:48

      Eish Desilus... That some kind of dinosaur??

      gerhard.kress.3 - 2012-08-15 12:56

      What about the 500000 jobs Zuma promised when he took office. He has lost all credibility and so has his government (The Shower & Champagne Club).

      claudia.meads - 2012-08-15 13:13

      Charles Dumbwin, Surely you meant "Another whisky washy pipedream" Louwhan, Will you 'Spear-head' this mass action..?

      oom.koos.7 - 2012-08-15 13:29

      The amount of cr@p this government dishes out, and is never accountable when nothing happens, and still they will vote for the stupid, lying, thieving , dishonest ANC... stupid, yet true..!!

      alan.gernet - 2012-08-15 13:35

      haha @ Claudia. Good one!

      louwhan.hoffmann - 2012-08-15 16:38

      @ Claudia - Answer to your question would be no. Only a real Zulu man can spear-head such an action. I am already livbing between SA and EU. Ngikufisela inhlanhla!(good luck in Zulu)

  • TheyTookMyNickLaZynEko - 2012-08-15 11:18


      marcusvandermerwe - 2012-08-15 13:49

      So how will we attract foreign investment after we nationalized the mines and took farms. Where are we going to find skilled labour to flood the workplace in 8 years time if our current educations system is a mess? I'm sceptical

  • arthur.hugh - 2012-08-15 11:20

    Blah Blaaaah Blaaaaaaah. Not to long ago there were big promises of a million jobs to be created.

  • xanavin.vonbuchenroder - 2012-08-15 11:21

    I think Gov means a 14% employment rate cos the way they stealing our tax money there's no way of that happening.

  • nthabiseng.monareng - 2012-08-15 11:21

    Very funny, tx needed to laugh this morning!

  • oageng.lekete.7 - 2012-08-15 11:22

    DA also promised to crate jobs I think they are learning from their master ANC,so basically everyone will be employed in South Africa by 2020. Will this be in the politicians heads or in reality? I think I heard the same story 18 years ago!:0

  • firstseed.mbeva - 2012-08-15 11:24


  • BigChiefPlumbPudding - 2012-08-15 11:25

    Sure no problem. Whatever you say.

  • firstseed.mbeva - 2012-08-15 11:26

    JZ promised 500 000 jobs few years ago.Promises-promises-promises!

  • iceman196 - 2012-08-15 11:27

    phishing for votes again, better get them food and diaper parcels ready anc

  • mholthuysen - 2012-08-15 11:27

    With the Marxist ideas and having no-idea in economic development; scaring foreign investments away and limping behind the growth rates of other developing nations... seems to NPC/ANC dreamland revisited...

  • leonard.rom.7 - 2012-08-15 11:28

    and lets put the price of eskom up up up up and why so many business closing wonding

  • wesley.bischoff - 2012-08-15 11:29

    Seeing is believing. We shall see what 2020 brings :)

      Joubs1957 - 2012-08-15 12:14

      If we even see 2020 - that is? lol

  • richard.zanner - 2012-08-15 11:32

    IS this an April fool joke. They have not been able to do it in almost 20 years.

  • neil.swart - 2012-08-15 11:32

    Nice plan......No Action! Come on ANC, I dare you to meet these targets!! No wait... I double dare you!!! We need a president with guts, beit black, white, purple or green!! A president who will not be afraid to tell any union to immediately stop the destruction caused by strikes, a president who will not hesitate to hold politicians or ministers accountable for their actions or performance! A leader of the people of S.A. I assure you people of all races will be united in building a prosperous S.A. once tollerance is preached by it's leaders and action is taken on what currently fails to deliver!! Again, I double dare you!!

      alan.gernet - 2012-08-15 11:57

      I will see you, and raise you five!

  • sbu.mahwai - 2012-08-15 11:33

    Wow really - come 2020 will be witnessing unprecedented service delivery protests due to this stupid promises

  • andre.burrows.92 - 2012-08-15 11:37

    Thank God the Western Cape will be independant soon.

  • SkyeBenga - 2012-08-15 11:37

    I think they had similar ideas in Zimbabwe in the 80's. At least they prevented overvaluation of the Zimbabwe Dollar.

  • trevor.izatt - 2012-08-15 11:38

    Hahahahaha maybe 14% employment.

      bob.mcmillen.564 - 2012-08-15 11:51

      More like it Trevor, they just added two letters too many, UN, no chance of getting even close to that, BEE guarantees high unemployment for a starter, and what industry are they going to target ? compete against the Chinese maybe, with good skills, incredible work rate, zero strikes, I think they are dreaming AGAIN.

  • Jaco - 2012-08-15 11:42

    Ambitious? I should say. But maybe we should start with the basics first. Like not attacking foreigners who bring in much needed capital into the country with pangas. Just an idea.

  • okonkwo7 - 2012-08-15 11:43

    Dream on...

  • hendrikvs - 2012-08-15 11:46

    Yes - and I am married to the Queen of England!

      alan.gernet - 2012-08-15 11:57

      Elton John?

  • julian.piovesan.1 - 2012-08-15 11:58

    20/30 years isw a long time.polititians can say what they like withouth repercussions.all of them will be no more by then so who will the remaining blame?

  • mark.wade.9461 - 2012-08-15 12:05

    Is that 14% unemployment in government, or 14% unemployment in South Africa? If it's the latter, dream on. Who believes such rubbish?

  • KennySven - 2012-08-15 12:08

    I have never heard so much RUBBISH in all my life.Since 1994 +-3,000,000(Three Million )jobs have been lost in the Clothing,Shoe,Millinery,Bag,Rope and Canvass and allied Industries alone due to STUPID Dumb Government decision to allow cheap Chinese Imports to flood our country and destroy thousands of businesses and put people out of work. Well done we thank you cANCer from all South Africans

      alan.gernet - 2012-08-15 12:14

      yeah - but the Puppetmaster China pulls the strings, and our political puppets jump!

  • Joubs1957 - 2012-08-15 12:12

    As long as the "Banana republic mentality" prevails it will NEVER materialize! The only way we stand a chance of upping employment is by getting rid of "fat cat" unions and COSATU. Who wants to create a bussiness where the employees have more say than the employers????

  • sefako.mokgalaka - 2012-08-15 12:36

    Empty promises again. Zuma and his advisors are making us a joke of the whole world.

  • jacqui.daanevanrensburg - 2012-08-15 13:09

    We all remember Zuma's promises of a half a million jobs by December. How long ago was that?.

      alan.gernet - 2012-08-15 13:42

      and what has he delivered? A million 'half-jobs'.

  • Nathan - 2012-08-15 13:10

    ok, ANC, i'll give you the benefit of the doubt.. now here's my version of the GAP analysis.. we want jobs right...? ok, so lets say you want my small business to employ 10 more people.. that means it has to grow about 5 times bigger than it is now,, how do we achieve that. right I need reps, 5... I need premises to hold greater stock levels . I need two trucks and 2 bakkies.. I need 4 drivers... I need an admin person.. Ok so lets for arguments sake pay the reps R80 000 per year basic. plus R1000 per month petrol each..( just hypotheticals people).. and the drivers R60 000 per year each..and the admin person R80 thats R780 000 for the first year.. In my industry, just to break even I need about R3,200 000 worth of sales... that's R640 000 per rep.. remember, just breakeven.. i'm competing with numerous other players much bigger than me.. we know how that can unfold.. ah hang on what about rent.. and vehicle purchases...R 2000 000 I need over 3 million rand just for the first year... finance charges.. R60 000 pm... ( ?) so im in for a hell of a lot.. and then rates go up... ?? so government.. lend me R4000 000 ( just to be safe) at zero interest payable over 20 years and ill create 10 jobs for you...

      louwhan.hoffmann - 2012-08-15 16:39

      Never spoil a good story with facts.

  • heinrich.spreeth - 2012-08-15 14:30

    not trying to benegative here but 14%? Just make it 10% ,it'll be just as hard to accomplish.

  • jan.kotze.7 - 2012-08-15 18:15

    Just watch this space over 8 years with ANC still in charge and you will probably find that the unemployment rate has increased!!!!!! If they nationalise whatever industries they say they want to you will find that those industries will seize to exist!!!! We need the best people for the job in goverment NOT CADRES!!!! This is the only solution other than change of Goverment

  • camp.j - 2012-08-22 09:44

    Ah elections must be coming...

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