Zuma must inject urgency into resolution of jobs crisis

In yesterday's Budget Speech, President Zuma proved to the nation that the ANC lacks both the plan, and the political will, to tackle the country's jobs crisis. Unemployment is the greatest obstacle to South Africa's growth and development. The ANC has, after 16 years of rule, failed to properly understand the scale of this problem and conceive and implement an effective action plan in response. Millions of South Africans are currently unemployed - the ANC's stubborn refusal to acknowledge the flaws in its approach to job creation is effectively condemning these citizens to continue living a life of poverty.

South Africa's jobs crisis is reaching its peak. The President has attempted to abdicate himself and the ANC government from accepting responsibility for their failed unemployment policy by blaming millions of lost jobs on the recession.

Unfortunately for the President, the devil is in the detail.

Statistics South Africa data shows that, in April 2009, 13 369 000 South Africans were employed. A year later, 12 803 000 remained employed, meaning a net loss of 566 000 jobs between April 2009 and April 2010.  The net loss of more than half a million jobs since President Zuma assumed office is the apex of what has been a growing crisis- one which has been fuelled by the failure of successive ANC administrations to properly understand and address the country's job's crisis.

A number of factors have contributed to this:

·         ANC-led governments have, since 1994, failed to appropriately assess the nature of unemployment in South Africa;

·         As a result, these respective administrations have lacked both the understanding, and the political will, to develop an effective and coherent job creation policy;

·         The ANC continues to rely on state-centered, rather than market-centered, approaches to job creation, such as the Expanded Public Works Programme and the ineffective SETAs;

·         Unfavourable labour legislation has made it unattractive for businesses to hire first time workers, which has compounded dire youth unemployment problems;

·         The failures of the government's ailing education system have decreased the opportunities available to young South Africans to escape from the poverty cycle;

·         And finally, the ANC continues to allow the unionist agenda of its tripartite alliance partner, COSATU, to undermine its economic and unemployment strategies

Conversely, the DA's job creation package includes prudent policies such as the following:

·         The DA has long advocated a wage subsidy initiative, which would encourage both employment of new staff and investment in on-the-job training. While Finance Minister Pravin Gordhan recently put forward a proposal to introduce such a programme, little progress has since been made;

·         Replacement of the ineffective SETAs with an apprenticeship programme, which will equip employees with skills that are directly relevant in the workplace;

·         Thirdly, the DA will continue to advocate changes to labour legislation that will make the hiring of new workers more attractive to business, especially small and medium sized enterprises

Policies such as these have already had a positive impact in the DA-governed Western Cape, which has managed to avoid the national trend and created 21 000 jobs in the first quarter of 2010, a more than 1% increase in employment.

The country doesn't need any more promises. It needs jobs- millions of them in fact. And it needs them fast. Yesterday, the President commented that a "sense of urgency could be felt in all government spheres" with regards to the task that lies ahead. If the burgeoning unemployment crisis does not fill the ANC government with a sense of urgency, nothing will. 

Statement issued by Athol Trollip, MP, Democratic Alliance parliamentary leader, May 13 2010

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