Ramaphosa blames July 2021 unrest, Covid and floods for unemployment and slow economic growth

President Cyril Ramaphosa has blamed a natural disaster, a global pandemic and a political and socioeconomic occurrence for SA’s slow economic growth and unprecedented unemployment rates.

According to Ramaphosa, joblessness and an economy in the doldrums are a result of the outbreak of Covid-19, the July 2021 “attempted insurrection” unrest as well as the floods that ravaged KwaZulu-Natal and the Eastern Cape earlier this year.

The president said there was, however, some light at the end of the tunnel when he looks at the latest job creation figures.

“Over the past few years, South Africans have had to contend with slow growth and rising unemployment. This has been worsened by a devastating pandemic, an attempted insurrection unrest in July last year, and, earlier this year, severe floods in parts of KwaZulu-Natal, Eastern Cape and North West,” wrote Ramaphosa in his weekly newsletter. 

“Amid all this, the energy crisis has loomed large, causing damage to the economy and hardship for households and businesses.

“Yet, even amid these formidable challenges, our society and economy has proven resilient. And indications are that our economy is showing encouraging signs of recovery.”

Ramaphosa said there was hope after a Stats SA report showed the country recorded a decline in the unemployment rate for the second quarter of 2021.

“Significantly, their measurement shows that the actual number of people employed rose from 14.5-million people in the fourth quarter of 2021 to 15.5-million in the second quarter of 2022. This is an encouraging increase of much-needed jobs over the first half of this year.”

Most of the jobs created were in the community and social services, trade, finance and construction sectors. This, he said, was also an indication that the economic reconstruction and recovery plan — which is opposed by the ANC’s alliance partner, the SACP — was the correct blueprint for reviving the economy.

“With infrastructure development and investment being one of the key priorities of our recovery plan, the growth in jobs in the construction area is particularly encouraging.

“The February budget outlined a 30% increase in spending on public infrastructure over the next three years to R812bn, compared to R627bn over the past three years.” 

Ramaphosa said three months ago the country returned to growth levels last seen before the Covid-19 pandemic.

“The growth in employment, together with other promising signs of recovery, should encourage us to push ahead with the reforms and implement our economic reconstruction and recovery plan to unlock investment and growth. It should encourage all social partners to work more closely and with greater urgency and purpose to achieve faster growth and create more jobs.”

TimesLIVE

Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.