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Wednesday, December 13, 2006

SA growth fails acid job test

Groom Farm Morning03
Originally uploaded by Picherthis.
Business day reports that inspite of record breaking economical growth, the South African economy has failed to produce the number of jobs to reduce poverty.

THE economy continued to create jobs in a slow and steady fashion in the third quarter, increasing the number of people employed in the formal, nonfarming sectors by 73000 (1%). According to Statistics SA, which released its quarterly employment statistics yesterday, this brought the increase from the same quarter last year to 193000, or 2,7%.

The quarterly figure was an improvement on the 62000 jobs created in the second quarter but analysts said it was still insufficient to make a significant dent in unemployment, which is estimated to be 25,6%.

Government wants to reduce the unemployment rate to 15% by 2014, and has established the Accelerated and Shared Growth Initiative for SA (Asgi-SA) with this aim in mind.

According to Business day this is especiallly true in South Africa's second largest sector, manufacturing. Why could this be? Apparently measures taken as part of Asgi-SA are intended to boost economic growth to an annual average of 4,5% until 2009 and 6% between 2010 and 2014. But why is Asgi-SA delivering growth but not all important jobs?

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