BL Premium writes that the prospects of newly appointed labour and employment minister Thulas Nxesi creating much needed jobs are near impossible, according to analysts.
They argue that Nxesi is being set up for failure if fundamental issues preventing employment in SA are not dealt with. Nxesi, the former public works, and sports minister, is the deputy national chair of the SA Communist Party (SACP). He also had a stint as the general secretary of the SA Democratic Teachers’ Union. His appointment to cabinet comes shortly after data revealed that the unemployment rate jumped to 27.6% in the first quarter of 2019. When asked how he will turn the situation around and assist in creating jobs to reignite the economy, Nxesi said he had not yet assumed his duties and that he still needed a briefing from the departmental officials. Econometrix chief economist Azar Jammine noted that unless the bottlenecks to job creation were addressed, “they are setting themselves up for failure”. Wits School of Economics senior lecturer Lumkile Mondi said the economy required serious restructuring from what he described as the “existing minerals and energy complex”. Labour consultant Tony Healy pointed out that the department could only do so much in enhancing the private sector’s potential to grow jobs because employment was going to come from the private sector, not the public sector. Efficient Group chief economist Dawie Roodt said a lack of job creation, not unemployment, was SA’s problem. “That department should be replaced by a department that will get rid of obstacles to economic growth. To grow the economy, they must protect private property rights, get rid of corruption, and reduce taxes,” he maintained.
- Read the full original of Luyolo Mkentane’s report in the above regard at BusinessLive (paywall access only)
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