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DA emphasises need for more flexible labour market to create jobs

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The DA has emphasised the need to reform SA’s labour laws to free up the labour market and make it more flexible and absorptive for job creation.

The Democratic Alliance (DA) Shadow Minister of Employment and Labour, Dr Michael Cardo issued a statement in response to the release of the Quarterly Labour Force Survey (QLFS) on Tuesday, 24 August 2021. Cardo addressed the increase in the unemployment rate, which now stands at a high of 34.4 percent, noting that this suggests a runaway train destined for disaster.

Cardo stressed that the government needs to urgently make labour-absorbing job creation South Africa’s number one policy priority, as a job is the best guarantee of social security. He also emphasised how all of government’s efforts need to be focused on giving the private sector room to create jobs. He further expressed that it seems like the government has given up on job creation, noting that it is overwhelmed by the enormous, deep-seated structural causes of unemployment.

Cardo also pointed out that job creation can be tackled by reforming South Africa’s burdensome labour laws and freeing up the labour market, in order to make it more flexible and absorptive. Cardo concluded by stating that this is why the DA is to push for an end to collective bargaining agreements, as they result in huge costs on firms and are killing jobs.

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