RATE IT | What Maimane, DA, EFF and Mashaba believe will help fix SA’s unemployment crisis

One SA Movement leader Mmusi Maimane has blamed the unemployment of 3.4-million youths on a failure by the department of basic education.

Maimane was responding to a Stats SA employment report released on Tuesday.

The report revealed that the official unemployment rate increased to 35.3% in the fourth quarter of 2021 from 34.9% in the previous three months, the highest since the first report in 2008.

“The number of employed people increased by 262,000 to 14.5-million and the number of unemployed people increased by 278,000 to 7.9-million in the fourth quarter of 2021 compared to the third quarter of 2021.”

The number of people who are not economically active decreased by 397,000 to 17.4-million during the fourth quarter. Discouraged work-seekers decreased by 56,000 (1.4%) and the number of people not economically active for reasons other than discouragement decreased by 341,000 (2.4%) between the third and fourth quarters.

FIX THE BASIC EDUCATION SYSTEM

Maimane said if government doesn’t address the unemployment issue it will get worse. 

The 3.4-million young people not in employment, education or training “were failed by the basic education system”.

“We must give them a second chance at learning opportunities. We must also fix our basic education system because this problem will only get worse,” he said. 

TACKLE RED TAPE AND REFORM SMMES

The DA said it will approach the Red Tape Unit to propose reforms for small, medium and micro enterprises (SMMEs).

“Freeing up small and medium sized businesses to create jobs is urgent, given that there are nearly 12-million South Africans without a job.”

Among the proposals are:

• Remove onerous BBBEE requirements for SMMEs — legislation has ensnared SMMEs in a costly web of red tape, the DA said. These regulations must be scrapped to give SMMEs the flexibility to compete fairly and grow their businesses;.
• Impose penalties for failure to pay SMMEs within the 30-day period. According to parliamentary replies to DA questions, most government departments and entities are struggling to pay SMMEs within the prescribed 30-day period. This is constraining their growth and ability to remain in business. The DA will propose that penalties be levied against departments that fail to pay SMMEs on time;
• Establish an SMME ombudsman — SMMEs  have little to no recourse when they become embroiled in a business dispute. The SMME ombudsman will act as an arbiter to resolve disputes lodged by an SMME during the course of doing business; and
• Implement exemptions from the Skills Development Levy — the levy is an additional tax on SMMEs trying to keep their heads above water. Based on an enterprise’s size and annual turnover, SMMEs should be exempt from the levy to give them room to invest and grow.

LABOUR LAWS AND PROFESSIONALISING CIVIL SERVICE

ActionSA’s Herman Mashaba said the increasing rate of unemployment is a good enough reason for South Africans to remove the ANC from power in the 2024 elections.

“SA’s economic success must be the priority, because the lives of South Africans can only be uplifted by the dignity and security that comes with a job.”

Government needs to focus on, among other things, relaxing labour laws to make it easier to employ South Africans and professionalise the civil service, which would ensure leaders are able to perform in their respective portfolios regardless of their political alliance.

CREATE A MANUFACTURING HUB

The EFF said the increased unemployment figures did not come as a shock after the “ANC rid itself of the responsibility to create jobs”.

The party was referring to remarks made by President Cyril Ramaphosa during the state of the nation address when he said the private sector, not the state, was in a better position to create jobs.

“SA must position itself as a manufacturing hub on the continent with the capacity to produce essential goods consumed daily, including food. Unemployment is going to continue to increase in SA because Ramaphosa confessed he is not going to create jobs.”

LAND EXPROPRIATION AND NATIONALISATION

The party said land expropriation and the nationalisation of strategic economic sectors were among solutions that should be explored by government to reduce the unemployment rate. 

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