We need a real Youth Wage Subsidy to create jobs in SA
18 January 2015
The DA welcomes the University of Cape Town report into the effect of the Employment Tax Incentive (ETI) - government's watered down version of what should have been a Youth Wage Subsidy.
The report supports the DA's position that COSATU's bullying of government into a weaker tax incentive for employing youth, rather than a strong Youth Wage Subsidy, will not have the same impact on creating jobs for young people that South Africa desperately needs.
The DA supported the adoption of the ETI in 2013 with reservations, noting that the final version had been significantly watered down from the initial proposal.
Moreover, the delay in tabling the Bill in Parliament, caused by the stand-off between the ANC and COSATU, led to 218,000 young job seekers joining the ranks of the unemployed.