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President Cyril Ramaphosa.
- The presidential employment stimulus provides for the creation of 800,000 jobs in response to job losses caused by the Covid-19 pandemic.
- President Cyril Ramaphosa says public employment programs have the potential to create both jobs and “social value.”
- But the Cosatu labor federation criticized the plan for not addressing inequality and setting a target that is “inappropriate.”
The government will implement an ambitious public employment program as part of its efforts to revive South Africa’s economy in a way that is also inclusive, according to President Cyril Ramaphosa.
These public employment programs have been adopted by several countries in the developing world, such as India and Ethiopia, the president noted in his weekly newsletter. “We have to get as many people as possible back to work,” he said.
Last week, Ramaphosa unveiled its long-awaited economic recovery plan that aimed, among other things, to create and support more than 800,000 jobs in the short term in response to severe job losses caused by the closing. The presidential employment stimulus, released together with the economic recovery plan, implies a public investment of R100 billion over the next three years, he said.
Second-quarter employment figures reflect that 2.2 million jobs were cut as a result of the shutdown, hitting those in the informal sector hardest. In his newsletter, Ramaphosa said that public employment could create jobs at scale in the short term, while markets rebound from the impact of the lockdown and create “social value.”
He referred to similar public works programs launched by the United States after the Great Depression in the 1930s. “This was not just an encouragement, but it also promoted participation and social inclusion,” Ramaphosa said.
The president said public employment programs have the potential to direct investment to local economies, reach poor areas first, support local small businesses, and eventually spread to the broader economy. Importantly, they promote participation and social inclusion, allowing communities to “change their lives as they undertake new ways of working.” State resources are used through these programs to respond to the needs of the community, he added.
“It is progressive, because it offers social protection and income security to those facing homelessness because they cannot find work. It is an investment in the future, as it supports the broader agenda of economic recovery by having our people work urgently to improve our infrastructure. national and municipal “.
Ramaphosa said the skills acquired through the program would better prepare beneficiaries to secure formal employment. “The experience gained is also a path to entrepreneurship. Participants will improve their skills and abilities to start their own businesses and will be able to use the stable income that public employment provides to diversify into other income-generating activities.”
No vague commitments
The president argued that the goals and objectives were realistic, while departments and stakeholders would be “rigorously” evaluated to make sure they have the capacity to implement the plans.
“The stimulus to employment is not about vague commitments for some time in the future, but about creating jobs here and now,” he said. He added that the hiring would be “fair, open and transparent.”
In a statement issued last week, following the presentation of the economic recovery plan in Parliament, the Congress of South African Trade Unions (Cosatu) expressed concern that the target of 800,000 jobs may be “inappropriate”.
“More work is needed here and, in particular, on what the private sector is going to do to avoid layoffs and increase jobs,” said Cosatu parliamentary coordinator Matthew Parks. “The state must absolutely prioritize the creation of sustainable employment, combining economic development with the expansion of decent work,” he added.
The labor federation has proposed that specific sectoral strategies should be developed to restructure the economy in a way that is equitable and can achieve job creation. “A critical task is to identify industries that are relatively labor intensive and sustainable, that is, capable of growing substantially for the foreseeable future. These sectors need considerable state support to ensure they grow and achieve equitable results,” said Parks .
Cosatu also criticized the plan to downplay the state’s role in pushing development. “Our current problems arose from a wrong philosophical argument that favors a limited role of the state in the economy and society … The economic recovery plan does not address issues of redistribution and inequality, it lacks systemic attempts to ensure that the growth of any percentage does not perpetuate inequality, “Parks said.
