NATIONAL COUNCIL OF PROVINCES

11 SEPTEMBER 2013

5. Mr MJR de Villiers (DA-WC) to ask the President of the Republic:

(1) Whether, with regard to his promise in 2011 that the Government will create 5 million jobs, the Government has created any additional job opportunities since this promise; if not, why not; if so, (a) how many and (b) in which sectors;

(2) whether the Government has any plans in place to support its programmes and the private sector in order to create more jobs for the millions who are unemployed; if not, why not; if so, what plans?    CO444E

REPLY:

Honourable Members,

The New Growth Path, which this Government adopted in October 2010, set a target of five million new jobs by 2020.

The National Development Plan takes this target over a longer period by calling for the creation of 11 million new jobs by 2030.

Let me clarify Honourable Members that the targets set in these documents do not reflect government creating jobs within the public service but total jobs that could be created in the economy, including jobs in the private sector.

We set targets as a guide to achieve certain objectives. It is important to have these guidelines and to strive towards achieving them.

It must, however, be noted that there are many external factors that affect businesses and their ability to grow employment that are outside the control of government.

To reach the target of 5 million jobs over 10 years, we would have needed to create half a million jobs every year between 2010 and 2020.

This has not happened thus far as the world economy has not fully recovered from the global financial crisis.

As a result, the demand for South African products by our key trading partners is lower. Firms are not confident that if they invest in new factories they will be able to sell their products. Some industries have not been producing at sufficient levels because of industrial relations disputes.

Consumers are not spending much as well due to tougher economic conditions. However, the signs of recovery in the United States and other trading partners give signs of hope.

Our government supports job creation by promoting a competitive economy overall.

This we do by providing social and economic infrastructure, a framework for skills development, and the regulatory environment within which businesses must operate. We also encourage investment in activities that can generate more employment and support emerging enterprise.

I thank you.

Issued by Parliament, October 7 2013

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