SACCI CONCERNED ABOUT LATEST UNEMPLOYMENT STATISTICS

The South African Chamber of Commerce and Industry (SACCI) is concerned by the increase in the official unemployment figure to 25.3% in the first quarter of 2012. The figures indicate that South Africa urgently needs business friendly regulations to improve the competitiveness of local business. Unfortunately, the current set of legislative amendments before parliament largely introduces additional costs and burdens to business that would ultimately reduce future sustainable employment creation.

The issue of the increasing cost of labour has recently risen to prominence, but the opportunity to contain costs and retain operational flexibility through the use of short-term service contracts may soon be restricted by proposed amendments to the Labour Relations Act (RLA) and Basic Conditions of Employment Act (BCEA). 

Broad unemployment (i.e. unemployed individuals plus discouraged work seekers) provide some context to the true scale of the problem in South Africa. The figure currently stands at 6.8 million compared to the 9.5 million workers in formal non-agricultural employment. As seen from graph 1 below, broad unemployment has grown on an annual basis for each quarter since 2008. A further clamping down on local business will mean that this figure will continue to grow.

SACCI has prepared a commentary on the amendment bills and will submit them to the parliamentary labour committee in due course.

Graph 1: Broad unemployment trends in South Africa from 2009

Statement issued by Mr Neren Rau, SACCI CEO, May 8 2012

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