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Statistics released today indicate that South Africa’s economy grew at a glacial 1.3% in the second quarter of 2011. In the same period, the number of unemployed South Africans increased by 174 000.
It is clear that our economy isn’t working.
Today, I will therefore introduce the following motion in the National Assembly:
“I hereby move on behalf of the Democratic Alliance, that this House urgently debates structural problems that are holding back economic growth and job creation in South Africa, including an analysis of the contribution to growth or lack thereof of existing labour laws, and come up with measures to overcome these hurdles.”
The biggest concern is our sliding manufacturing, mining, agriculture, forestry and fishing industries. Today’s report by StatsSA indicates that these industries contracted by 5.2 percent – a hugely significant decrease in the most jobs-intensive sectors in our economy.
This helps to explain why our economy is failing to create jobs and why low-skilled workers, in particular, are struggling to find employment.
The only source of growth in the economy is the high-skills industries. This means that young, less skilled workers are being left behind. It underscores the need for a youth-centred job creation strategy, such as a wage subsidy for new entrants in the labour market
The Democratic Alliance has a number of other constructive proposals that, if implemented tomorrow, would increase growth and create jobs. It is time they were given full consideration in Parliament.