Internships can be a game-changer in weak jobs market

14 September 2016 - 10:06 By The Times Editorial

Declaring that he was confident that the country would, for the second time this year, avoid a catastrophic downgrading of its sovereign debt rating to ''junk'', Pravin Gordhan has once more come out fighting for Team SA.The finance minister emphasised yesterday that, although the economy is not in recession, we need to do things ''spectacularly differently" over the next year to transform the ''small green shoots'' now manifesting into rapid, sustainable economic growth.Gordhan is correct. Growth of 2%, or even 3%, is achievable in the medium term with the right economic policies and, we must add, in light of the appalling campaign to undermine the Treasury, the right politics.GDP growth of 3% will not reduce joblessness sufficiently to meet the National Development Plan's targets but it would be a great start.The rapprochement between the government, business and labour that Gordhan is leading to ignite growth, create jobs and avert a downgrade is our best shot.The minister outlined an exciting initiative yesterday that involves the government and business teaming up to place thousands of young people in one-year internships.A large-scale internship programme would make a sizable dent in youth unemployment which, at about 50%, is this country's most pressing problem.For the beneficiaries, a year of job experience would make a world of difference, greatly enhancing their chances of remaining employed and moving up in life.The programme differs from the youth employment tax incentive which, despite criticism by the unions, has been an unqualified success in a shrinking jobs market. The incentive, which encourages employers, through tax breaks, to employ young people, was claimed for 134,923 jobs in 2014 and for 686,402 jobs in 2015, and will be renewed.Gordhan's point that we can turn the corner only by doing things differently cannot be stressed enough...

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