ANCYL statement on the Quarterly Labour Force Survey Q1: 2023
17 August 2023
The ANC Youth League welcomes the recent drop in the unemployment rate, as evidenced by the latest statistics released by Statistics South Africa. This development presents us with an opportunity to commend the industries that have successfully created employment for the youth of South Africa. The organisation encourages these industries to persist in their efforts to combat unemployment.
Whilst we acknowledge the government's endeavors to address the issue of extensive unemployment the ANCYL is especially concerned with the youth unemployment rate.
The ANCYL urges the govemment to adopt a more assertive approach in compelling businesses engaged in transactions with the state to prioritize the hiring of a substantial number of South African youth. This approach should be the fundamental aspect of their association with the state. Noting that the government is a major purchaser and regulator within various sectors of the economy, it is imperative that it enforces heightened youth employment and skills training targets for enterprises.
According to the recent QLFS report from Statistics South Africa, the past quarter has seen an upswing of 154,000 jobs, contributing to a total workforce of approximately 16.3 million in South Africa. While this progress is noteworthy, the ANCYL implores both the government and the private sector to initiate a collaborative effort geared towards creating a significant number of permanent positions for the country's young population.
The youth, aged 25-34, continue to bear the brunt of unemployment, with a staggering unemployment rate of 40.7%. The absorption rate into the job market for youth aged 25 — 34 is at 43,6% in comparison to 35 — 44 absorption rates of 56,6%. This essentially means that young people are least employed and least likely to be given access to employment in South Africa. Equally concerning is the statistic that 36.1% of young individuals are neither employed nor engaged in education or training. Whilst all of these statistics are an improvement from the previous quarters it remains a drop in the ocean when you consider the lived reality of young South Africans.
The I .1% decrease in unemployment, though a step in the right direction, represents only a fraction of the challenge, considering the sizable proportion of young individuals who continue to grapple with poverty due to lack of employment. This underscores the ANCYL's call for the government to assume a proactive role in steering key sectors of the economy.
It's crucial to recognize that the government's revenue generation depends on taxes, which are directly tied to income generation, itself contingent on investment. Thus, the government's financial stability hinges on the revenue streams of various businesses.
Consequently, the organisation advocates for the government to exercise oversight over capital and bolster its own capabilities, thereby enabling it to create sustainable job opportunities. The ANCYL furthermore advocates for the nationalization of the mining sector and the establishment of a state-owned bank with a focus on youth employment.
In line with our 26th National Congress resolutions the ANCYL asserts that the government should not adopt a passive stance in the market but should instead proactively intervene and regulate capital. This entails the government spearheading the industrialization of our economy, it is alarming to note the manufacturing sector which in most nations contributes greatly to employment is slacking. The negative performance is linked to constraints brought about by the unstable electricity grid, as such the ANCYL calls upon the responsible government officials to accelerate the pace of stabilizing the electricity supply. As outlined on numerous occasions, the ANCYL rejects any solution to stablise the electricity entails privatization.
The ANC YL believes that the nationalization of the mining sector, control over key economic sectors, the establishment of a state bank, land expropriation without compensation, and the creation of a developmental state, are strategic interventions which the government must implement to effectively address unemployment and inequality. The current societal framework perpetuates systematic unemployment due to the entrenched power of capital. Businesses, driven by revenue and profit motives, seek ways to cut costs, often leading to staff reduction and the implementation of more efficient technologies.
In conclusion, we urge the government to take decisive action, rather than maintaining a neutral position in the market. Addressing unemployment and inequality necessitates proactive intervention and the adoption of comprehensive measures to reshape our economic landscape and promote the well-being of the nation's youth. In the final analysis the ANCYL commends the hard work and dedication in improving the countries' dire state of employment post the Covid-19 pandemic. The organisation however calls for decisive and systematic restructuring Of the South Economy and its relationship with capital in order to bring about tangible change that will save future Of South Africa, which is the Youth.
The children(youth) Of any nation are its future. A Country, a movement, a person that does not value its youth and children does not deserve its future. — President Oliver Tambo
Issued by Zama Khanyase, ANCYL National Spokesperson, 17 August 2023
