High unemployment rate a sign government has failed - EFF

BY CHARL BOSCH - MAY 10, 2016

The Economic Freedom Fighters (EFF) has said the increase in the country’s unemployment rate during the first quarter of 2016, is a clear indication that the ruling African National Congress (ANC) had failed to deliver on its promise of creating six million jobs in less than five years.

On Monday, Statistics South Africa revealed that unemployment had gone by 2.2% to 26.7% compared to the same time last year, with 355 000 less people being employed between the final quarter of 2015 and first quarter of this year.

In a statement, EFF spokesperson Mbuyiseni Ndlozi said the expanded unemployment rate of 36.3% represents the biggest worry however, as its means that roughly nine million South Africans are without jobs, adding that the figure reaching ten million would have severe consequences for the economy.

“The Industrial Development Zones, which were supposed to be cornerstone of job creation, has only created 10 000 jobs after investments worth more than R10-billion. The Jobs Fund has created just 11 000 direct and indirect jobs despite the fact that it was presented as a lasting solution to South Africa's jobless crisis,” Ndlozi said.

“Despite these realities, government, particularly the Department of Trade and Industry continues to spend 67% of its budget on industrial incentives which benefit multinational corporations, and these happen without clear conditions and commitments to create sustainable jobs by the multinational corporations”.

He also stated that the much vaunted black industrialist programme had been “a dismal failure” not providing any support to up and coming black South Africans, and that the automobile industry continues to use imported components which could be made locally.

“There is no clear and enforceable commitment from recipients of incentives to create jobs through upstream and downstream economic activities which would economically empower those who supply manufacturing components and those who trade and distribute afterwards,” Ndlozi continued.

“What’s more, government opens South Africa's borders to be flooded with cheap and low quality consumer products from all over the world. On the current pace and direction, the current government will further plunge South Africa into a deeper jobless crisis”.