The recent announcement about the decrease of the unemployment rate from 33.5% to 32.1% should be taken with a pinch of salt.
This may have been a positive development but, if we are honest, this decrease is meaningless. Unemployment remains high and there are many people who are discouraged to look for work altogether because hope is all lost.
SA’s high unemployment rate is cemented in an inadequate education and training system that tends to fail to address the country’s economic needs. Our education system fails to encourage entrepreneurship to a point where it is normal to find job seekers, rather than job creators.
To make matters worse, those who have a chance to further their studies don’t look at what will be relevant to the economy. Hence, it is common to find many graduates frustrated in a saturated job market that is unable to employ them.
Then there are economic factors, such as global wars, increasing cost of living and cost of starting businesses that squeeze out those who are supposed to create jobs.
But this is no excuse for government to relax, as President Cyril Ramaphosa once said when he apologised for saying government is not responsible for creating jobs. Government must step up and redress the past injustices.
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The reshaping of the education system is a necessity because it will allow SA to provide skills that are relevant to the economy and ensure the country is competitive globally.
Entrepreneurship must be fostered. The red tape around starting businesses and for investors to invest must be done away with.
With small businesses being the pillar of any economy, government must invest and offer mentorship to entrepreneurs. We don’t want to find – as has happened before – government funding enterprises that end up failing because they were never given the resources to enable them to expand.
As much as labour laws are important, it is crucial that South Africa finds a balance to eradicating those laws that make it hard for any business to operate.
At some point, business-friendly initiatives must be encouraged.
Government must also invest in infrastructure. This will bolster economic growth and encourage job creators to emerge because of the opportunities that will be unlocked.
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All in all, government must work with the business sector, as well the state-owned enterprises, to tackle unemployment all round so that real jobs can be created.
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