LISTEN: ‘It’s populist nonsense’ – Economist says job creation is not the role of government (VIDEO)

Political party posters are not the only thing going up as election campaign season takes full swing. The stakes are also rising, and the promise of a better life for all is in the air.

As the national elections draw closer, politicians are making their plans for office clear, with job creation being a common promise across manifestos.

With 44.3% of youth currently unemployed, the promise of job employment is sufficient to spark a glimmer of hope in the millions of young people who’ll be casting their votes on 29 May.

While the idea of higher employment prospects sounds enticing, many have wondered if politicians can truly deliver on their promise, or whether their words are simply a ploy to win votes.

So, is it the role of government to create jobs?

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‘No, it’s not’

Speaking to The Citizen, economist Dawie Roodt said no.

“It’s not the government’s role to create jobs, the government’s role is to create an environment where the private sector can function properly,” Roodt said.

Listen to Roodt speak about job creation:

He explained that ‘real’ job creation can only happen when the private sector is in a position to actively employ more people as the economy grows.

“Jobs should never be the objective. The objective must always be economic growth and then jobs will happen,” Roodt said.

“That’s the right approach, but we know politicians want to be elected,” he added.

‘We all know this’

During his 2022 State of the Nation Address (Sona), President Cyril Ramaphosa echoed the same sentiments.

“We all know that government does not create jobs. Business creates jobs.”

“The key task of government is to create the conditions that will enable the private sector – both big and small – to emerge, to grow, to access new markets, to create new products, and to hire more employees.”

READ MORE: Sona 2022: Ramaphosa’s new ‘social compact’ to create jobs and build economy

‘Populist nonsense’

If the writing is on the wall, then why do politicians keep touting the promise of job creation in every election?

Roodt believes politicians are taking advantage of the country’s high unemployment rate to garner votes.

“This job creation [promise] is just populist nonsense by politicians,” Roodt said.

“They’re simply lying to people saying they’re going to create the so-called ‘jobs’. This is absolute nonsense.

“They’re more interested in being elected, and that’s why they lie to people.”

Taking a swipe at the government’s employment initiatives, Roodt said they cannot be considered as ‘real jobs’.

“Politicians always confuse so-called jobs, they think if you keep people busy, then you’ve created jobs – which is not true.”

“The only real job creation happens when the private sector voluntarily employs people because they want to employ more people, [as] the economy grows,” Roodt concluded.

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