Unemployment in South Africa a disaster

29 October 2019

The unemployment rate that, according to Statistics South Africa's recent quarterly report, has risen to 29,1%, which is the highest that the country has had over the last 11 years, is an absolute disaster.

The ruling ANC's rash and populist policy directions and its lack of political will to combat unemployment are just making matters worse.

Policy directions, like expropriation without compensation, that cause uncertainty among investors and other government failures, like the utter lack of proper service delivery and the destruction of local government, only serve to exacerbate the situation.

An economy simply cannot prosper if the most basic services are not delivered by municipalities.  Local economies are hampered by poor local government, which suppresses the economic outputs of local businesses and limits job creation.

The immense pressure on the fiscus, exacerbated by exorbitant salaries, is also not a sustainable situation. The government has become a provider instead of a creator of jobs.

During its 25 years of rule, the ANC failed miserably at establishing a healthy economy with sustainable job creation. The government's wage bill is unsustainably high and must be cut back.  That will, unfortunately, only bring about an even higher unemployment rate – which is the ANC's own doing.

The ANC cannot continue to govern South Africa. Millions of people are unemployed, hungry, poor and without the most basic services, like water and power supply, while the ruling party is dancing to the tune of the trade unions. This crisis must be taken seriously.

Issued by Heloïse Jordaan, FF Plus MP and chief spokesperson: Labour, 29 October 2019