Finance Minister Enoch Godongwana has highlighted the widening gap between job creation and employment as there are more unemployed people than jobs that have been created since 2019.
Over 386, 000 more jobs have been created since 2019. But there are currently 1.6 million newly unemployed people, most of these are said to be new in the labour force.
Statistics SA (StatsSA) revealed on Tuesday that 8 million people remain unemployed. This while unemployment saw a slight decrease from 33.2% in the second quarter to 31.9% in third quarter.
Structural reforms needed
Godongwana said faster implementation of structural reforms and higher levels of capital investment are needed for rapid growth and job creation.
“The pattern of unemployment continues to mirror South Africa’s longstanding socioeconomic divides. It is affecting women more than men, black Africans more than whites. Under 35s more than older workers and matriculants more than tertiary graduates,” said Godongwana.
He said the decision to decrease inflation to 3% was carefully thought to boost economic growth. And to also create jobs in the coming years.
He said Operation Vulindlela, government’s flagship reform programme, was making progress. This is especially in energy and transport. He said this programme is key in local job creation.
Operation Vulindlela
“Government is pressing ahead with the implementation of structural reforms through Operation Vulindlela. This continues the steady work of reforming key network industries. These include energy, freight logistics and water. Also reforming the visa system to attract tourism, skills and investment.
“The second phase of this programme expands the focus to strengthen local government. To also create dynamic and integrated cities, and introduce the benefits of digital public infrastructure,” said Godongwana.
The Mid-Term Budget Policy Statement (MTBPS) highlights that stronger investment signals and consistent implementation of infrastructure projects would also assist in boosting employment in the construction sector.
This as the sector contracted by 3.9% in the first half of this year. And compared to the same period last year, it shows declines in residential and non-residential buildings.
“Gross value added remains about a quarter below pre-pandemic levels. This is reflecting weak private investment and slow public infrastructure rollout,” said Godongwana.
