Masses of unskilled employees have been priced out of the market The fact that South Africa's unemployment figure rose to more than 25% in the last quarter should not come as a surprise.
According to the 2012 UASA South African Employment Report, researched by economist Mike Schüssler on behalf of the union and released last week, one of the main reasons for South Africa’s inability to create jobs may be that the masses of unskilled employees have been priced out of the market. Moreover, the state is employing more employees than the mining and manufacturing sectors combined. In addition, public servants are on average earning 34% more than employees in the private sector.
UASA have grappled with the problem of job creation since 2005, not least via the union’s annual Employment Report. Unless we are prepared to change and start confronting each other with the difficult questions, the status quo will be maintained and we will face the same situation over and over again.
UASA supports the proposal that a wage subsidy, as proposed by government, could help job creation and, secondly, we believe that the employment of people in “training jobs” at lower levels for a period of time should be considered.