Shops blame the economy for zero jobs

THE shrinking economy is the biggest block to job creation.

That is what managers and owners at some retail stores in Durban told the Sunday Tribune.

In a study of 20 stores, most of those surveyed said they would not employ more people even if the national minimum wage was scrapped or if labour laws were changed to make it easier to dismiss people.

The national minimum wage is R3500 per month or R20 per hour.

However, if businesses could increase their turnover, they would consider hiring more staff.

According to those surveyed, there is no money to hire additional staff.

“Educate people, build schools, train youth,” they said.

To boost job creation, shop owners called on the government to invest more in small businesses, which would help them to employ more staff.

David Shapiro, an economist at Sasfin Securities, said people needed the dignity of having a job.

However, the unemployment rate is at 27.2% with an increasing number of people losing their jobs.

Shapiro agreed the government needed to do more to get the economy moving.

He pointed to government institutions as the key players in turning the economy around.

“We need a government that serves the population instead of feeding off it.

“In order to grow our economy and create jobs, stable pillars are needed.

“Good institutions like schools and home affairs is where it starts,” he said.

Dawi Roodt attributed technology as a huge problem in the country, “the more we move to digital and technology, the more the need for manual labour diminishes”.

Roodt said the country did not have enough qualified and skilled workers, because of an education system that did not equip its people.