The Western Cape created 194 000 new jobs in the three years before 2003. But the official unemployment rate increased to 26,1%, or by 612 000 people, according to this year’s provincial budget documentation.
The rate in 2000 was 22,6%, according to the Provincial Economic Review and Outlook, tabled last Tuesday with the Western Cape budget.
A key contributing factor is the annual migration of 48 000 people in search of jobs. The review says the majority of migrants are aged below 36 and without a matric certificate.
Employment has also been squeezed by sluggish manufacturing output, turmoil in the clothing and textile industry and disappointing job creation in the province’s biggest income generator — the financial, insurance and business services sector.
Just more than half the unemployed, or 320 000, are coloured, while Africans account for 41% of those without jobs and 6% are white. Among the youth, aged 16 to 25, unemployment has reached 46%, or 6% above the national average.
The R20,6-billion budget will target economic growth, job creation and skills development. “No government service will fulfil the dreams of our people if we can’t create more wealth in the province and find more equitable ways of sharing it,” said provincial finance minister Lynne Browne.
But there is little cash left to support the ambitious programme. Ninety-one percent of the budget comprises transfers from national coffers allocated to health (27,9%), social services (23,55%) and education (30,5%). The province raises about R1,4-million from car licences, casino receipts and taxes on liquor licences and gambling.
Already the only province to budget for a deficit of R386-million — covered by accumulated reserves and investment returns — the Western Cape is now turning to a variety of levies.
On Tuesday provincial treasury officials touted the possibility of levies, including a carbon tax and a sin tax on liquor and tobacco. A fuel levy is awaiting the nod from the National Treasury, while the feasibility of a tourism and construction levy is being researched.
However, the provincial government will do its bit for job creation: an additional 6 112 public servants will be employed over the next three years.