Honourable Chairperson,
The ACDP notes the budget reduction to some R11.6 billion in this Department of Labour and Employment. The Department has the mandated responsibility of addressing workplace disputes, fostering better labour relations, improving occupational health and safety, and supporting job creation. On the score of supporting job creation, the Department fails as the statistics speak for themselves.
Unemployment is at 32.9%. On the expanded definition, it sits at 41.9%. Youth unemployment is around 44.3%. We have a gini-co-efficient of 0.63 and our debt to GDP is at 74%, with a deficit on our national budget of over R300 billion, or 5% of GDP, and debt service costs are now beginning to crowd out key budget imperatives.
Stats SA’s GDP data revealed that the country’s economy shrank by 2% in the third quarter of 2023 and youth unemployment increased by 4%.
With water outages, road infrastructure and port failures, and unbridled crime and corruption, it is easy to see why jobs are so under threat in South Africa.
The ACDP asserts that these job cuts are largely due to the ANC’s failed policies resulting in policy instability. Additionally, political instability caused by in-fighting, cadre deployment, nepotism and incompetence throughout all three spheres of government, have resulted in load-shedding, infrastructure collapse, and an unfriendly business environment.
When the rate of unemployment rises in an inverse proportion to GDP, it will lead to socio-economic crises and become a threat to national security.
If this Department is serious about its mandate, then it must implement policies which, indeed, create more job opportunities. There must be an investing in infrastructure projects, promoting small business growth, and improving education and training programmes. In this regard, there must be a correlation between education and skills training projects and business needs so that business demand meets supply.
The ACDP has long said that in growing our economy, it must be done with a social conscience which involves implementing social welfare programmes to support those who are unable to work, such as the elderly or disabled.
In conclusion, the ACDP reiterates the high priority imperative of addressing jobless growth in order to provide for a more inclusive society, thereby ensuring that national security concerns are fully met.
I thank you.
