South Africa’s unemployment crisis shows that the new dawn, introduced by President Cyril Ramaphosa, has drastically failed, says the Economic Freedom Fighters (EFF).
This after Stats SA, in the latest quarter three labour force survey, revealed that South Africa’s unemployment rate now sits at 34.9% in the third quarter of 2021, compared to 34.4% in the second quarter.
According to the report released on Tuesday, 660,000 people lost their jobs between the second and third quarter, with the number of those who have given up on looking for jobs increasing by 545,000 to 3.9 million.
“The released figures show clearly that celebrated second-quarter GDP figures that showed growth in the GDP were not a recovery of the economy. These unemployment figures, particularly the number of discouraged workers, clearly indicate that the much celebrate new dawn is a fraud,” said the EFF in a statement on Tuesday evening.
“Our people were promised millions of jobs at bogus investments summit used to arrange deals to privatise South Africa’s strategic assets. The reality is that the new dawn has failed drastically to develop any practical and believable plans to create jobs. Yet, we continue to be told that Cyril Ramaphosa presidency is reviving the economy. The unemployment crisis must be placed squarely at the mismanagement of the economy by Ramaphosa and the ruling party.”
According to the party, the only way South Africa will get out of the unemployment crisis is through “a clear and practical economic plan centred on localisation and municipal centred economic growth that will build state capacity”.
ANC government once again breaks unemployment record
In a statement on Tuesday, the FF Plus slammed the African National Congress’ (ANC) government and its “short-sighted” and “harmful” policies.
“The government must realise that it is busy knee-haltering the economy and hampering job creation with its ideologically driven policy, administrative red tape and incompetence, which are severely restricting the private sector,” said the party.
“The FF Plus wants to re-emphasise the importance of the private sector in bringing about economic growth. This sector must be helped, cherished and encouraged.”
The Steel and Engineering Industries Federation of Southern Africa’s (SEIFSA) economist Palesa Molise said the surge in unemployment numbers, coupled with a very high Ginicoefficient of 63.0 index in South Africa, is worrisome as this indicates the extent to which inequality is deepening in the country.
“More effort should be placed in curbing the stubbornly high unemployment rate, reducing electricity costs, logistical costs and providing for critical skills opportunities in digitisation, automation, data science and artificial intelligence,” she said.
“The latest unacceptable rise in unemployment figures, now more than ever before, requires Business, Labour and Government to urgently collaborate in finding sustainable solutions to the scourge of unemployment in our Country.”