COSATU statement on the latest GDP numbers
6 December 2017
The Congress of South African Trade Unions has noted the report that shows that South Africa’s economy, as measured by the GDP has continued its recovery with 2 % growth during the third quarter of the year. These are optimistic and helpful news and hopefully the fourth quarter will consolidate on these gains.
While these numbers are heartening, we cannot ignore the fact that GDP is but one indicator of economic development and does not factor in other indicators such as unemployment and income inequality.
The major pillars of an economy in any country are the agriculture, mining and manufacturing sectors. Unfortunately, while all of these sectors are growing they are not creating jobs, firstly, because the first two sectors provide raw materials for the manufacturing sectors that is almost nonexistent in this country. Secondly, these sectors are not creating jobs because of automation and mechanisation that has seen workers being replaced by machines.
Mining companies continue to submit section 189 retrenchment notices showing their intention to retrench more workers. AngloGold Ashanti and Bokoni Platinum Mine in Limpopo are planning to retrench 8 500 and 2651 workers respectively.