Lack of inclusive growth behind rising unemployment: Fedusa

Published Nov 22, 2016

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Johannesburg - Labour federation Fedusa says social partners should focus on finding solutions to economic constraints that have led to an increase in the unemployment rate to 27.1% in the third quarter of 2016.

Fedusa's calls follow Statistics South Africa's announcement on Tuesday that the number of unemployed people increased by 0.5% from 26.6% in the second quarter.

The biggest hit sectors include mining which shed 9 000 jobs and with manufacturing and social services also reporting job losses.

While the agricultural, construction, financial services reported employment gains.

Fedusa attributed the country's lack of inclusive growth as the reason behind the low levels of job creation.

It said there were a number of alternative policies that could be used by the government to ensure higher inclusive growth.

“The increase in the unemployment rate is directly linked to the fact that South Africa requires higher inclusive economic growth to support employment creation,” said Fedusa general secretary Dennis George.

“The leadership of the social partners should now focus on finding sustainable solutions to the constraints that have been identified as a requirement to greater savings and investments and more productive use of capital by a better skilled workforce,” said George.

@ZintleMahlati

Labour Bureau

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