Strategic plans quantifying the size of the South African labour force in the next decade are expected to be in place by 2005, says the deputy director general for public finance in the national treasury, Andrew Donaldson.
Answering questions before the national assembly ad hoc finance portfolio committee on Tuesday, Donaldson said the modeling work on how to reduce unemployment over the next decade “has not been worked out in detail yet”.
“We are involved in joint work with Statistics South Africa, the Human Sciences Research Council and Trade and Industry and others in developing a better understanding about what kind of growth rate and what changes in the structure of the economy mean for job creation in the next decade.”
This would involve work on the association between growth and economic development and job development, he said, noting that the economic growth rate had been in the region of 3% a year in the last decade, with job creation at a slightly lower 2% per year in that time. This was consistent with international practice and trends, he noted.
Answering a question from Martin Stephen, a United Democratic Movement member of Parliament, he said. “Halving the unemployment rate is about understanding the job creation trends and growth in work seekers. We do know that the growth in the size of the labour force has been extraordinary rapid.”
Donaldson said there had been “much faster outflows from the school system and an increase in the participation [in the economy] of women and rural people moving into urban areas”, resulting in a very fast growth in the size of the labour force.
He told the committee that it was envisaged that the modeling would be done
by next year. – I-Net Bridge