Critics blame govt for high unemployment

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”.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders