/ 13 December 2001

‘Labour laws contribute to lack of jobs in SA’

Johannesburg | Thursday

SOUTH Africa’s labour legislation, coupled with the lack of skills among the majority of prospective employees, were responsible for the rising tide of unemployment, according to the SA Institute of Race Relations (SAIRR).

In its 55th annual South Africa survey released in Johannesburg on Wednesday, SAIRR said the current 26 percent unemployment rate since 1998 could also be attributed to the fact that labour legislation were discouraging employers from exercising activities such as retrenchments.

The reluctance of foreign investors to come to South African shores was partly due to the rampant lack of skills caused by a history of racial education systems like the Bantu education.

This contributed to the decreasing employment rate.

Kane-Berman said strikes and other labour disputes were not necessarily to blame as they were just part of the problem.

In terms of educational qualification, the country has been experiencing a general drop, particularly in tertiary enrolment which went down by 18% between 1994 and 1997.

But Kane-Berman said the “good news” to employers in terms of the Employment Equity Act was that Africans obtaining tertiary qualifications had increased by 27%, although most of them tend to go for Public Administration and Social Sciences.

According to the SAIRR, Coloureds have been the hardest hit at 21,9% this year from 15,8% in 1998.

Africans have remained generally stable at 31,1% from 32%; Indians 17,6% (14,7% 1998) while Whites have moved from 4,4% to 6,6% over the same period.

On living conditions, the survey found the government has produced 19% of households between 1995 and 1999, with electrified homes up by 31% and clean water by 25%.

The public health care system has improved by a mere five percent while the private health care by only three percent.

Crime has been generally on the up between 1994 and 2000, with rape incidents up by nine percent, robbery and assault 14% respectively, while murder dropped by 30%.