Budget Debate Vote 28: Labour

By Hon. X Ngwezi
Spokesperson on Labour

Delivered at Parliament in NA Chamber

15 May 2018- 10:00am

Vote 28: Labour


Honourable Chairperson,

The IFP would like to note with serious concern the shockingly high unemployment rate in South Africa that has continually moved from bad to worse. We are of the view that the lingering joblessness and high rate of youth unemployment has not been met with the responsiveness that is required from the government. Waxing lyrical.

It is our concern that 39% of all unemployed people in this country have never worked before. The figure amongst young people is sitting at 60.3% which is chronically high compared to other African countries that are classified as Upper Middle income countries.

It is concerning that the annual unemployment growth rate in SA of 4.8% is double that of employment rate which stands at 2.4%. In other words, the trend persists and no drastic action on the part of the government to create employment opportunities, the National Development Plan goal of reducing unemployment by 6% by 2030 is unattainable.

The persistent joblessness amongst the young people who have completed matric, those who have graduated and those who dropped out frmo schools for a variety of reasons are a cause for serious concern. This is also exacerbated by a demand for work experience from both the government and private sector.

Despite the amendment of the Labour Relations Act in 2010 and the High Court ruling on the 13 of July that gave employees hired by labour brokers benefit if they remain employed by companies for more tha three months, labour brokering remain the main cause of unemployment as employees hired through this process are easily displaced from their places of employment.

The minimum wage proposed by the government of R20per hour is not a living wage and is far below the daily expenses of many workers that include transport to and from work and daily subsistence provision.

The IFP therefore believes that it does not make sense to more than 60.3% of young people and 26.7% of the population of this country to celebrate this day when they cannot put food on their table.

We support this budget Vote.

I thank you.