Economic growth not sufficient to support job creation and alleviation of unemployment
The pace at which the South African economy expanded in the third quarter of 2011 disappointed. At 1,4% it resembles the 1,3% registered in the second quarter. This is not fast enough to support the job creation needed to alleviate unemployment.
The sectors performing best on a year over year basis are finance (4,6%) and domestic trade (4,5%). It would seem as if the finance sector can become a huge job creator as 143 000 jobs were created compared to the third quarter of 2010. This equates to job growth of 8,8% for the year to the third quarter of 2011. UASA urges government to further explore the potential of the finance sector as job creator in the New Growth Path and National Planning Commission's development path till 2030.
Though the world economy is struggling, the ANC-led South African government can do much to create an environment for faster growth and job creation. Positive policy statements will encourage investment, something that is lacking in the private sector due to among others uncertainties created by conflicting statements issued by government officials, ministers and ANC-members.