With unemployment at a record high of 29%, according to figures released by statistician general Risenga Maluleke earlier this week, business leaders are calling for government to acknowledge that South Africa is in crisis and to not only create policy certainty but find effective short-term solutions to attract local and international investment.
“Certainly there is a jobs crisis but the crisis is bigger than that – the entire economy is in crisis and it’s becoming harder and harder for companies to retain jobs,” said Business Unity South Africa, acting CEO, Cas Covadia.
Jahni de Villiers, head of policy at Agri SA’s Centre of Excellence: Labour and Development, agreed, highlighting in a statement that the increase in South Africa’s unemployment levels indicated that an organised and focused strategy applied by all South Africans was now needed.
“The unemployment situation, a problem that spans all industrial sectors, is increasingly becoming an issue that is difficult for policy makers and captains of industry to deal with,” reiterated Steel and Engineering Industries Federation of Southern Africa (Seifsa) economist, Marique Kruger.
“Against the backdrop of an increase in the official unemployment rate, the persistent high level of unemployment highlights the need for more targeted interventions by policy makers. Moreover, continuous support for businesses under duress is imperative to achieve and maintain higher economic growth in the medium to longer term,” she pointed out.
