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Calls grow for urgent action to address job losses
Calls grow for urgent action to address job losses

eNCA

time6 days ago

  • Business
  • eNCA

Calls grow for urgent action to address job losses

Seven months after President Cyril Ramaphosa stood before the nation in his State of the Nation Address and declared that South Africa's 'most urgent task is to grow the economy, create jobs, and reduce poverty,' the country is now in the grip of a deepening employment crisis. On Saturday, Statistics South Africa confirmed that 140,000 jobs were lost between April and June, equating to an average of 46,000 jobs lost each month. The news has prompted growing public frustration and political concern, especially given the silence from the President, his party the ANC, and the Democratic Alliance (DA), the second-largest party in the new Government of National Unity (GNU). 'Business as Usual Is Failing' DA Slams Lack of Urgency Speaking on All Angles, Michael Bagraim, the DA's spokesperson for Employment and Labour, did not mince his words. 'The government is repeating the same failed strategies. For over a decade, I've called for reforms in the labour space. Removing red tape, deregulating, and easing the burden on small businesses. But we're still stuck in an outdated model,' said Bagraim. He highlighted the quarter's job losses as part of a broader, cyclical trend, particularly in tourism-dependent provinces like the Western Cape and KwaZulu-Natal, where seasonal employment typically shrinks. 'That said, seasonal factors don't excuse policy paralysis. There's no innovation, no urgency. While the DA is trying to push reforms from within the GNU, the ANC seems unwilling to abandon approaches that clearly aren't working.' Silence from the Top Despite the scale of the economic blow, there has been no official response from President Ramaphosa nearly 48 hours after the data was released. 'Perhaps he's silent out of embarrassment,' said Bagraim. 'He challenged his ministers two years ago to explain what's blocking job creation in their departments. Yet only DA ministers are doing so.' Bagraim pointed to successes by DA-appointed ministers, including Dean Macpherson, whose department reportedly created 20,000 new jobs, and Dr Leon Schreiber at Home Affairs, who has implemented policy changes aimed at employment growth. Signs of Reform But Are They Enough? Bagraim expressed cautious optimism about discussions underway within NEDLAC (the National Economic Development and Labour Council), which he described as the "engine room" for new labour legislation. 'There's serious talk about freeing small businesses from the heavy burdens of existing labour laws, something we've been advocating for over a decade. You can't govern a spaza shop by the same laws as a supermarket giant.' He also mentioned that the Western Cape, under DA leadership, has managed to reduce its unemployment rate to roughly half the national average, citing deregulation and policy innovation. GNU Holding, but Under Pressure When pressed about what's really happening behind the scenes in the GNU, Bagraim insisted the partnership is functional and producing results, albeit slowly. 'There's progress. GNU is working in principle. Some ANC ministers are starting to listen. The unemployment crisis is too big for political posturing. This is about national survival, not party politics.' He warned, however, that failure to act decisively could lead to social unrest. 'We've seen what unemployment can do, look at the Arab Spring. South Africans want solutions, not speeches.' Turning the Tide Despite the grim numbers, Bagraim ended on a hopeful note, calling for unity, urgency, and less politics. 'Unemployment is not a political issue, it's a humanitarian one. Let's stop blaming and start fixing. The green shoots are there, but we need to water them.'

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