Labour laws stifle job creation

South Africa does not have an unemployment problem, but rather an employment crisis, according to chief economist of the Efficient Group, Dawie Roodt. ‘The annual civil servant salary is about 30% higher than the average private sector salary.’ “It is too expensive and too difficult to employ people in this country. The labour laws are difficult and therefore employers shy away and rather don’t do it.” Along with that the price of labour is expensive, he said. “The annual civil servant salary is about 30% higher than the average private sector salary. That is unsustainable. Government has already indicated it is looking at only a 5% increase for its employees this year and already Cosatu has reacted by saying it will strike if this is the case.” Roodt said ultimately the government would give in and the situation would just become worse. “The policies are against wealthy people and against economic growth. If you want to address job creation and are serious about creating employment for your people to grow your economy it means that you must create an environment that is easy and profitable for business to succeed. Until government does that we will not see the lack of employment really being addressed.”