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The Quarterly Employment Statistics (QES) for December 2009 released today by StatsSA show that 351 000 jobs were lost between December 2008 and 2009. This is a severe indictment of ANC economic policy geared towards creating "decent jobs" - as combined losses in manufacturing and construction sums up to 152 000 - or 43.3% of jobs lost. (see table below)

The construction industry has suffered the biggest reduction in the number of employees (12.4% reduction). This clearly shows that the Extended Public Works Program (EPWP) has in fact accomplished exactly the opposite of what is needed, which is building sustainable jobs. It has instead led to the so-called casualisation of labour as permanent employment has been replaced by temporary short term jobs in construction. This is not necessarily a bad thing, but it is in fact a phenomenon which the Minister of Labour, Membathisi Mdladlana, has been vehement about.

Clearly, the ANC government is chasing its own tail when on the one hand it promises "decent jobs" but then acts to accomplish the casualisation of labour, while at the same time stating this should be clamped down on and wanting to ban labour brokers. Cosatu, who has been especially vocal in calling for the banning of labour brokers, does not even realise that their input on labour polices has led to an increase in labour brokers.

This is by no means just a theoretical discussion on labour policy - it reveals the ANC administration's complete ignorance of labour market fundamentals. They have replaced common sense and analysis with cheap populism to appease the unions - who then rally against the affects of their original inputs. The DA will call on the Minister of Labour to explain this chain of events - how government is wasting time and money in fighting against itself.

The creation of real jobs and the eradication of poverty is one of the primary challenges facing South Africa. The solution to this problem lies in embracing the free market, relinquishing control over certain key aspects of the economy and establishing an environment in which investment is encouraged, entrepreneurship awarded and small and medium sized business supported and allowed to grow. Unfortunately this government is moving in the opposite direction. Under the auspices of the ‘developmental state', it is seeking to maintain its control and, indeed, if the new industrial policy is anything to go by, increase it. This is wrong. Central to arresting this approach is the realisation that the market is best placed to generate prosperity and wealth and not the state.

Jobs lost per industry between December 2008 and December 2009:

Industry Jobs lost Reduction in amount of jobs in industry
Mining and quarrying 33 000 6.4%
Manufacturing 91 000 7.1%
Construction 61 000 12.9%
Retail, repair services and tourism 80 000 4.6%
Transport, storage and communication 7 000 1.9%
Financial services 118 000 6.2%