By More Matshediso
Pretoria - President Jacob Zuma says job losses in the first quarter of 2014 were reversed in the second quarter, when the economy gained 39 000 jobs.
The President said this in a written reply to questions asked by the Democratic Alliance. He said in the year to the second quarter of 2014, employment climbed by 403 000.
“… As a result, from the third quarter of 2010, when the New Growth Path was adopted, the economy has gained almost 1.4 million new jobs,” said President Zuma on Tuesday.
The South African President said job losses in the first quarter often reflected seasonal fluctuation.
“On average, since the Quarterly Labour Force Survey was launched in 2008, the economy has seen a 0.5% fall in employment in the first quarter, with compensating growth in the rest of the year,” he added.
President Zuma said the country’s economic policies are now directly aimed at stimulating inclusive growth, job creation and greater economic equality and opportunities for citizens.
He said the National Development Plan (NDP) sets an employment target for 2030, and that implementation strategies were in place to achieve the 2030 vision.
Asked what actions will be taken to stimulate economic growth, President Zuma said the key elements included the National Infrastructure Plan, which in the last administration saw the largest public investment in any five-year period since at least the 1960s.
He also mentioned a local procurement drive, to ensure that government purchases have the greatest possible multiplier effect and stimulate industrialisation, stretch targets to expand post-secondary education substantially -- combined with measures to facilitate the immigration of skilled people in the short run.
President Zuma said doubling of industrial financing available through the Industrial Development Corporation and Small Enterprise Finance Agency, as well as various dti funds; and targeted sectoral strategies under the Industrial Policy Action Plan also formed part of actions to be taken in stimulating economic growth.
“Our full programme for radical economic transformation is included in the Medium Term Strategic Framework (MTSF), in particular for Outcomes 4 (inclusive growth) and 6 (economic infrastructure),” he said.
“The contraction in manufacturing employment remains a concern. Although the sector has seen an increase in production in the past five years, this has not been matched by growth in employment,” he added.
The President said the main employment impact of manufacturing lies outside of the sector itself, in support services, producers of inputs (agricultural or mining) and retail sales as well as services for the workers in the industry itself.
In addition to the implementation of the Industrial Policy Action Plan, under the MTSF, President Zuma said government has committed to expand trade with Africa, which is a key market for light manufactures, and work with the main economic stakeholders to address the roots of workplace conflict.
“… Which lie essentially in unfair inequalities in pay and facilities, a lack of career mobility for most workers and often poor supervisory practices,” he said.
“Measures to transform the economy to bring about more equitable and employment friendly growth, and to improve overall economic governance, are the only sound way to improve our credit rating,” the President added.
He said government is embarking on a process, led by the Deputy President, to work with stakeholders to improve labour relations.
He said the MTSF foresees that government will do more to manage administered price increases as well as prevent the abuse of prices for intermediate inputs. - SAnews.gov.za
