COSATU one of the causes of unemployment in South Africa

It is ironic that COSATU has expressed shock at figures released by Statistics SA which indicate that 75,000 jobs were lost in the last quarter. After all, it is COSATU itself that is a key block to job creation.

It is COSATU that stands in the way of a treasury approved proposal for the introduction of a youth wage subsidy that could create 400 000 jobs for unemployed young South Africans. If COSATU had not blocked this subsidy in Nedlac, despite it being agreed by both the treasury and independent researchers that the subsidy is one of our best options to address spiraling youth unemployment, the picture painted by Statistics SA in their unemployment figures released yesterday may not have been as grim.

A youth wage subsidy will lower the effective cost of employment and create hundreds of thousands of jobs without an adjustment of wages or conditions of employment, all whilst acting as an incentive for on-the-job training. A lack of experience is one of the main barriers to market entry for young people, and by minimizing the risk to businesses of employing them, a wage subsidy makes them far more likely to open the door of opportunity to young people, 50% of whom under the age of 30 being unemployed. 

COSATU claim to be the voice of the poor in South Africa, when in fact, they are one of the drivers of poverty. 

As the political games continue, young people are losing hope. Every day more and more of them shift from being jobseekers to being discouraged from seeking out employment at all.

When we march on COSATU on 15 May, as a last resort and in the interests of all unemployed young people, we will make it clear that we will not tolerate them being a barrier to job creation in South Africa any longer. 

Statement issued by Makashule Gana, DA Federal Youth Leader, May 9 2012

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