PHUTI MOSOMANE
The Congress of South African Trade Unions (Cosatu) says the latest report from Stats SA on South Africa’s employment levels is yet another depressing wake up call for the government and the private sector that we cannot continue as is and somehow expect miracles or things to change for the better.
Stats SA’s latest employment report shows that total employment for the first quarter of 2023 decreased by 21 000 with significant job losses of 36 000 in trade and industry and 32 000 in business services.
This marks another increase in the overall unemployment rate by 0.02%.
Full time employment shrunk by 63 000 whilst part time employment increased by 42 000.
Total earnings by workers decreased by R34.1 billion or 4%.
Cosatu says these are alarming signs of stagnation for an economy with a total unemployment rate of 42.4% and a meek 0.4% GDP growth rate last quarter.
But Cosatu acknowledges that the South African economy has shown itself to be remarkably resilient in spite of all the challenges thrown at it.
Cosatu says what is needed is for the government and the private sector to begin providing the stimulus the economy needs to take off.
Government and business need to treat unemployment as the number one crisis, Cosatu Parliamentary Coordinator Matthew Parks says.
He warns that the government is continuing along the path of reckless austerity budget cuts to key public services in the state, allowing municipalities to continue to underspend their infrastructure roll and allowing billions to be lost in the fiscus to wasteful expenditure and corruption cannot be allowed to continue.
Cosatu urges organised business to get off its pedestal and lead from the front in an active and organised drive to ramp up local investments and local procurement, especially in jobs rich sectors.
Government, for its role, needs to double its efforts to support Eskom’s energy action plan to end loadshedding.
“We need a more coherent and active intervention plan by the state to secure and rebuild our freight and passenger railway network and modernise our ports. These are key to getting workers and our products to their destinations on time. A well run Transnet will unlock thousands of jobs in mining, manufacturing and agriculture,” Parks says..
He adds that both COGTA and Treasury need to intervene in the “myriad of dysfunctional municipalities to ensure they provide the basic services that communities and the economy depend upon.”
More support and resources, including filling key vacancies, need to be given to law enforcement organs such as SAPS, SARS, NPA, SIU, Hawks and the courts “if we are to send a message to the public that the government is serious about tackling crime and corruption. This war will not be won with platitudes.”
Cosatu wants the government to increase and not end the Presidential Employment Stimulus to accommodate two million active participants, enabling young people to enter the labour market, earn a salary and gain invaluable skills and experience.
The federation also wants the government to raise the SRD Grant to the Food Poverty Level of R624, which has not once been adjusted for inflation since it started in 2020, and link its recipients to skills and employment programmes.
SAFTU General Secretary Zwelinzima Vavi says Stats SA shows that big corporations in the formal sector are not creating jobs.
“That formal economy is shedding employment proves our observation of the development of the capitalist economy. That is, as the capitalist enterprises grow, their growth is skewed towards destroying jobs as they bring more efficient machinery to beat the socially necessary labour time it takes to produce goods and services, and ultimately win competition in that industry and thereby make more profit.”
“Hence the economy has become capital intensive. Thus, the economy has become more concentrated and centralised i.e., characterised by monopolies and oligopolies. The competition tribunal rulings on several mergers on a monthly basis, is proof to this concentration and centralisation,” he said.
President Cyril Ramaphosa’s spokesperson Vincent Magwenya said on Wednesday that over the last six months the President has focused on resolving multiple challenges and advancing the economic growth agenda including establishing and championing the Youth Employment Service (YES) placing 100,000 youth in 1-year work experience.
The Presidential Employment Stimulus has created 1.2 million public employment opportunities since 2020.
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