A National Economic Development and Labour Council (Nedlac) report has warned that public employment programme structures were discriminatory on who can get jobs.
Men who are above 35 years old were often excluded from government jobs programmes, which at times focus on women only.
This is said to potentially increase frustration for black men who have been excluded from the system. Also people living with disability, as they are often left out.
As such, the report advises that public employment schemes need to prioritise access, reach, scale and visible impact. And offer skills that can be used at a later stage.
The report also discusses, among other things, the trade and industrial policy. It focuses on issues with the availability of information and clarity on how to access funding. As well as the criteria and conditions involved.
Review of the country’s trade and competition policies
It stresses the need for a review of the country’s trade and competition policies.
The report also highlights several challenges within industrial policy. These include the unstructured nature of the e-commerce sector, which has potential for increasing employment, particularly for the youth.
Additionally, it points out the need to address the influx of cheap online products, such as clothing and textiles.
Barriers to accessing entrepreneurship
Regarding small, medium and micro enterprises (SMMEs), the report highlights barriers. It shows that high compliance costs are a significant barrier, calling for regulatory reforms and reduced red tape.
The sector also faces challenges with effective business education related to trading and export markets. And the current industrial policy does not support SMMEs adequately.
Recommendations include implementing a 30-day payment regulation for SMMEs. Also simplifying access to funding, and lowering tariff barriers. This to improve global market access for these businesses.
The effort to build a more economically advanced South Africa continues. This as the works towards inclusive growth across various sectors and creating employment.
Deputy President Paul Mashatile said the government will continue to collaborate with Nedlac to speed up the reforms. To also speed up reforms in inclusive growth in various sectors. These include energy, water, freight, ICT, unemployment and social security.
In a pre-recorded speech for the 29th Nedlac Summit in Sandton on Friday, Mashatile said while growing the economy, they still needed to cushion communities and businesses from the ravages of climate change.
“We will continue to work with social partners to develop these priority areas. This is what social dialogue and social compacting are all about,” said Mashatile.
The Department of Employment and Labour Deputy Minister Phumzile Mgcina elaborated on employment. She said South Africa was in a time that government, business, and society needed to join hands and protect existing jobs. And also create new ones for those unemployed.
She said there was an urgent need to accelerate productivity in improving infrastructure, rail development and special planning.
“South Africa is a land of opportunities. Its potential is amplified by its strategic global position, cultural diversity, and rich mineral resources. Yet, our economy has been grappling to expand at an anticipated pace.
“Over the past five years, the growth rate has averaged 0.8%. Leading to a challenging labour market, given our current high unemployment rate of 33.5%,” said Mgcina.
Mgcina said the country needed to secure investments and break the markets. She was referring to the 1990s, when South Africa experienced rapid growth and integration into the global economy.
