SONA shows Ramaphosa’s New Dawn is floundering – IRR
President Cyril Ramaphosa’s SONA address reveals a floundering recovery effort that calls the likelihood of an imminent New Dawn into doubt, according to Dr Frans Cronje, CEO of the Institute of Race Relations (IRR).
‘There was very little in the address to suggest that the government is in a position to tackle South Africa’s greatest structural threat – the economic exclusion of very large numbers of young people,’ Cronje said.
IRR research demonstrated a ‘close relationship between economic growth and job creation’, yet too much government policy had the effect of ‘stunting rates of growth and shutting off avenues to employment’.
Joblessness is a mounting crisis. IRR analyst Nicholas Lorimer pointed out that the number of unemployed people had risen from 1 998 000 in 1994 to 6 177 000 today, or by over 200%, while on the expanded definition of unemployment the rate had risen from 31.5% to 36.6%, or by 16.2%.
Cronje said employment data ‘reflects a NEET rate (people aged 18-34 who are not in education, employment or training) of 39% – and there is no greater threat to South Africa’s long-term stability than such levels of economic exclusion of young people’.