Prospects for job creation look dimmer by the day

The one clear message emanating from interviews conducted by several pollsters ahead of the May 29 national and provincial elections, is the crucial significance of job creation in the country.

Fortunately, this does not come as a surprise to political parties judging by the fact that the issue ranks high in their election manifestos.

However, the key issue to consider is the ability to separate idealism from realism.

Some parties have even gone as far as to promise the gullible voters they will create as many as two million jobs – notwithstanding the paltry 1% economic growth projected for this year.

According to Statistics South Africa, the economy grew by a minuscule 0.1% in the most recent fourth quarter report.

For the country to be able to create the much-spoken-about magical figure, the economy must grow by more than 4%.

Our official unemployment rate hovers around 30%. A closer look at this percentage reveals an even scarier picture for the youth aged between the ages of 18 and 35.

Statisticians have put the unemployment rate among African youth close to 80%. This is the same youth that calls itself the “born-frees’’ – notwithstanding that they are born in an economic environment that is hostile to their aspirations.

Several ministers in the employment and labour portfolio, among them, ex-labour minister Membathisi Mdladlana, have repeatedly described this worrying figure as a “ticking time bomb’’.

Now it does not require a rocket scientist to know what enabling conditions for economic growth in South Africa ought to be. These include a reliable and constant energy supply. We know that due to loadshedding, the country bleeds more than R1-billion a day, and this factor alone will continue to impact negatively on the growth of the economy.

The need to end corruption, which has been well documented by the Zondo commission and various commissions and political and economic analysts, is well documented. The urgent necessity to prosecute those fingered instead of only targeting the low-hanging fruit must be realised sooner than later.

The issue of Transnet and its ability to transport goods to and from ports in the fastest and most efficient way possible, is a consideration as well, if we are to talk about meaningful growth in the economy.

Another equally important matter is education. If we are serious about running a world class economy the imperative is to get the basics right. These include ensuring the quality of education ranks among the best in the world. We would immediately stop the comical 30% pass rate, and ensure teachers are properly trained, and their work is quality-checked consistently and not to allow teachers’ unions to hold the country to ransom by shielding their members from scrutiny. As we talk about the impediments of reducing unemployment in the country, we also must cite the coldness of business towards black South Africans in particular as it relates to its preference for employing foreign nationals over locals.

How do we explain the fact that more than 500 000 foreign nationals are presently employed in sectors such as hospitality, security and retail, when thousands of local graduates beg for jobs?

This, we argue, is purely done for exploitative reasons. Businesses will do all in their power to undermine workers’ gains such as reflected in the national minimum wage and decent work programmes.

Adding salt to injury is the impotence of some trade unions emasculated over the years because their focus is no longer on the workers, but more on getting a seat in parliament chairs.

This perhaps explains why the labour movement can no longer pull masses of the working class and have meaningful and impactfully outcomes over socio-economic difficulties confronting workers.

Amid this, the job’s bloodbath is escalating. In the mining sector, with commodity prices plummeting, major mining conglomerates have taken a serious knock financially. Recently, Anglo American Platinum (Amplats) conceded in its financial statement that its profit fell from R492-billion in 2022 to a paltry R13-billion in 2023. Job losses only add fuel to the fire.

Are we surprised at the arrogance of employers who have been emboldened by the prevailing situation?

These are just some of the factors that dim the hopes of job creation among South African youth. With May 29 approaching, the issue of job creation is set to become a daily staple diet, laced with false and unrealistic promises.