Rudderlessness Ramaphosa

Dear Editor

The release of the Quarterly Labour Force Survey (QLFS) for Q2:2023 reveals a grim reality: South Africa’s unemployment crisis persists unabated while the Ramaphosa’s ANC remains at sea, unable to turn the ship around.

The ruling party’s economic policies ensure that millions of South Africans remain unemployable. Our official unemployment rate stands at 32.6%, which is a mere 0.3 % decrease from the preceding quarter.

A deeper analysis of the figures reveals that the ANC government’s inability to ensure a stable power supply is perpetuating the unemployment crisis, particularly among young South Africans, and its other targeted racial interventions have backfired. Today’s numbers indicate that an alarming 3.4 million young people (accounting for 34.2% of the 15-24 age group) are not in employment, education, or training (NEET). Even more concerning is that 60.7% of South Africans in this age group are not employed at all.

Government policies have clearly not been able to tackle the structural root causes of our unemployment crisis; the ANC’s failure to relax labour market regulations and improve the quality of our education system is fueling the pandemic of joblessness.

Today, an expanded unemployment rate that persistently hovers above 40%, widespread poverty and a failing education system that has marginalized millions are fueling resentment among citizens. This is a ticking time bomb which, when it explodes, will have catastrophic social and economic consequences.

In stark contrast to the national trend, the Western Cape, governed by the Democratic Alliance, has demonstrated, yet again, that effective governance can significantly impact employment rates. With an unemployment rate of 20.9% compared to the national average of 32.6%, the Western Cape showcases what can be achieved with a capable state.

Not only has 2023 been characterized by unprecedented power cuts, but the ANC has also started doubling down on interventions that will lead to more job losses. Through the Employment Equity Amendment Act and its associated regulations, the ANC has become increasingly aggressive in its insistence on enforcing irrational racial quotas in the labour market. In some provinces the “numerical targets” for certain racial groups are arbitrarily set at 0.0%. The Racial Quotas Act will deter investment, sap growth, and destroy jobs.

The DA is therefore fighting the law tooth and nail. We envision a future where such race laws are consigned to the dustbin of history, and the private sector is freed from the dead hand of overregulation. That is the only way we are going to make a significant dent in the unemployment rate.

Regards

Dr Michael Cardo MP
DA Shadow Minister of Employment and Labour