Johannesburg - The non-profit organisation Assembly of the Unemployed (AoU) has called on the South African government to urgently invest in job-creating alternatives in order to address the country’s unemployment crisis.
According to Statistics South Africa’s Quarterly Labour Force Survey, released on Tuesday, more than 13 million South Africans are jobless, and the number of unemployed persons in the first quarter of 2023 increased by 179 000 compared to Q4: 2022.
AoU said the survey painted a bleak picture that mirrored the country’s employment crisis.
The organisation added that by investing in job-creating alternatives, the government could help reduce the unemployment rate and improve social and economic outcomes for individuals and communities.
“High levels of unemployment exacerbate existing disparities and create social divisions, leading to negative social and economic consequences such as increased poverty, crime rates and social unrest, just like we witnessed with the July 2021 riots. The government’s austerity agenda is also negatively impacting South Africans,” the AoU said.
The organisation called on the government to adopt potential job-creating alternatives such as:
1: Invest in job-creating alternatives: Create a low-carbon reindustrialisation project that can lead to the creation of millions of jobs to combat climate change.
Here, the AoU said the country can make investments in housing, public transportation, public energy and agricultural transformation. This includes creating infrastructure for solar PV and wind energy as well as producing socially-owned renewable energy.
2: Basic Income Grant: AoU said the unemployment figures were an indication that there’s an urgent need for the introduction of a decent basic income grant of at least R1500 per month as a safety net for the poor who are grappling with the unemployment crisis.
This will not only raise people out of poverty and raise their standard of living, but it can also help boost local economies and increase productivity, which is where jobs are created. The demand for products and services may increase as more individuals have greater disposable income, which will ultimately support economic growth.
3: Government must become the employer of last resort: AoU said the government must employ everyone willing and able to work and pay them a living wage. The enlarged public works can serve as the foundation for doing this, but the working circumstances need to be changed and improved.
“This also means expanding the public sector, as we need many more teachers, healthcare and municipal workers. The government must do away with the current trend of outsourcing the provision of local services to tenderpreneurs, as it is one of the main drivers that leads to the inability of municipalities to create jobs,” the AoU said.
“This can also help develop the skills and talent of the workforce. This can include training programmes, apprenticeships and other initiatives that help people gain new skills and experience that can be valuable in the job market.”
4. Tax the rich: The AoU said the government must implement a progressive net wealth tax of between 3 and 7%, increase personal income tax rates on the rich, stop profit shifting and wage evasion and use the surpluses of the government employees’ pension to invest in a re-industrialisation programme.
“We believe that industrial sectors have the potential to create a significant number of jobs, including both skilled and unskilled positions. Employment losses were recorded in Mpumalanga, North West and Free State. Re-industrialisation can help address regional inequalities, reduce migration from rural to urban areas and promote balanced development across the country,” the AoU said.
The organisation said if the government failed to look at the alternatives, the jobs crisis would worsen.
“The figures also indicate that there is an increase in time-related underemployment and young people experience underemployment at far higher rates than older persons. Sadly, the youth remain vulnerable in the labour market and are excluded from enjoying the fruits of our democracy,” the organisation said.
The AoU called on the youth to unite and stand up against the current regime’s failures.
The Star