Damaging policies responsible for high unemployment - Solidarity 

23 November 2016

Trade union Solidarity said today that damaging policies that are at odds with the vitality of the economy, greatly contribute to the high levels of unemployment seen in South Africa. 

According to Gerhard van Onselen, economics researcher at Solidarity, the quarterly labour force statistics released by Stats SA yesterday paint a gloomy picture. “If last year’s figures for the third quarter are compared to the current third quarter figures, we see that the estimated number of working people have increased by a mere 5 000, from 15,828 million in Q3 2015 to 15,833 million in Q3 2016. In contrast, the number of unemployed in terms of the expanded definition have increased by 712 000, from 8,3 million to 9,02 million,” Van Onselen explained.

Van Onselen added that it was concerning that from 2008 Q3 to 2016 Q3, the estimated number of employed people only increased by 1,3 million from 14,5 million to 15,8 million. “Over the same period, the working age population grew by 4,9 million and the labour market increased by 4,2 million,” Van Onselen explained. 

According to Van Onselen, damaging policies are depriving the local economy of its vitality and adaptability. “The proposed national minimum wage is an example of the increase in interventionist policies that are on the cards. In addition, the intensified implementation of black economic empowerment and affirmative action are cause for concern. Urgent consideration should be given to drastically reduce interventionist policies, if not the economy would continue to perform much worse than its true potential,” Van Onselen said.

Issued by Gerhard van Onselen, Economic Researcher: Solidarity Research Institute, 23 November 2016