Cape Town - Small gains made in addressing the country’s stubbornly high unemployment mean little for the millions of South Africans who will remain trapped in poverty for many years.
This sentiment was expressed by economic role players following StatsSAa’s release of the Quarterly Labour Force Survey (QLFS) for Q4: 2022 on Tuesday.
StatsSA found that the official unemployment rate decreased by 0.2 of a percentage point from 32.9% in the third quarter of 2022 to 32.7% in the fourth quarter of 2022.
According to the expanded definition, unemployment also decreased by 0.5 of a percentage point to 42.6%.
“The number of unemployed persons increased by 28 000 to 7.8 million in the fourth quarter of 2022.
“The number of people who were not economically active for reasons other than discouragement increased by 95 000 to 13.4m and discouraged work-seekers decreased by 151 000 in the fourth quarter of 2022 compared to the previous quarter resulting in a net decrease of 57 000 in the not economically active population,” StatsSA said.
Youth (aged 15-34 years) remained most vulnerable in the labour market with an unemployment rate of 45.3% compared to 45.5% in Q3:2022.
The total number of unemployed youth increased by 46 000 to 4.6m in Q4:2022.
There was an increase of 86 000 in the number of employed youth during the same period.
Cosatu spokesperson Sizwe Pamla said the numbers were worrying.
“This comes on the back of similar decreases of 1% per quarter for the previous three quarters in 2022. However, this is not something to be celebrated because no society can sustain itself with unemployment of 42.6%.
“We should not be proud when four out of 10 people cannot find work to feed themselves and their families. The federation is deeply worried that whilst we saw the beginning of what we hope is momentum in reducing unemployment over the course of 2022, this progress may be lost with the current rampant levels of load shedding,” he said.
The union added that figures were also distorted because of the festive season part-time work.
“It is more critical for government to move with speed to fix the obstacles hindering economic growth.
“To make a dent in unemployment and close the growing inequality, we need an activist government and a democratic developmental state that is capable of intervening effectively to transform economic relations.
“This is impossible in an environment where State Owned Entities and Development Finance Institutions are being weakened and have become ineffectual,” said Pamla.
Assembly of the Unemployed’s Motsi Khokhoma said the economic policies being implemented were the problem.
“You can’t implement austerity policies because you will be cutting the number of people benefiting out of the national budget, to end poverty.
“Secondly the corruption of the ANC is killing this country and economy.
“Even with the interventions they are doing at the level of SOEs, the Post Office is going to cut 6 000 people which is a huge number. The youth has no hope, those who finished matric last year are just joining the sea of the unemployed.
People are suffering on the ground. As a solution, for one, we are saying tax the rich so that the poor can benefit through a basic income grant for all those between 18 and 59, R350 is really nothing.
You can’t buy 30 loaves of bread with it. We need to change the system, we need to change the governing body actually,” he said.
GOOD secretary-general Brett Herron added: “Enthusiasm over the small gains we’ve made in addressing stubbornly high unemployment must be tempered by the cold reality that millions of South Africans will remain trapped in poverty for a number more years.
More than 1m people (7.8m unemployed and 3.4m discouraged work-seekers) woke without a job or proper income.”
Modest economic growth (as announced in last week’s Budget), and a modest decline in the unemployment rate, can’t camouflage the urgent necessity to meet the basic needs of these millions of struggling compatriots.
South Africa needs an economy that can generate jobs, but in the meantime it needs to expand the social security net by introducing measures such as a Basic Income Grant,” he said.
Cape Times