Unemployment increase shows "do nothing" approach to economic crisis won't work

The data released today by Statistics South Africa is an indication that the global economic crisis has hit home, and the Democratic Alliance (DA) hopes that this will finally shake government out of its complacency.

That unemployment has jumped by 1.6 percent in just three months is alarming, and the ANC's "do nothing" response is irresponsible and needs to be reviewed. The government needs to develop a clear strategy, particularly to counteract growing unemployment. The February Nedlac framework for dealing with the economic crisis was supposed to develop a sector-by-sector strategy by the end of March, but this has never materialised. We need a plan and we need it right away.

In particular, we need a concrete plan of action to manage the consequences of massive job losses, including, for example, looking at for how long the Unemployment Insurance Fund (UIF) will remain solvent under unexpected pressure.

Government now needs to recognise that South Africa is not isolated from the forces of international markets, and that the livelihoods of ordinary South Africans are at stake.

Statement issued by Kobus Marais MP, Democratic Alliance spokesperson on finance, May 5 2009

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