SAFTU Statement: South Africa’s Quarter Labour Force Survey: IN SUMMARY
SAFTU Concerns: The South African Federation of Trade Unions (SAFTU) is alarmed by rising unemployment in the 2nd quarter of 2024, reversing gains made in 2023.
Unemployment Data: The 2nd Quarterly Labour Force Survey (QLFS) shows official unemployment rising from 8.2 million in the 1st quarter to 8.3 million in the 2nd quarter. Including those who have given up searching, unemployment increased from 12.1 million to 12.3 million.
Youth Unemployment: Official unemployment for young people (15-34 years) is at 46.6%, with expanded unemployment for those aged 15-24 at a staggering 70%. This indicates a failure to create jobs for new entrants into the labour market.
NEET Youth: The number of young people not in employment, education, or training (NEET) has risen to 9.2 million, with young black women being the most affected.
Long-Term Unemployment: Over 6.4 million people are trapped in long-term unemployment, with a dismal labour absorption rate contributing to this steady increase over the past decade.
Structural Issues: SAFTU blames structural issues on capitalism, particularly its neocolonial character, where South Africa exports raw minerals instead of developing local manufacturing, thus losing job opportunities.
Manufacturing Base: SAFTU argues that South Africa should build its manufacturing base to create jobs locally rather than exporting raw minerals for processing abroad.
Capitalist Impact: The logic of capitalism leads to structural unemployment, as companies invest in machines to reduce costs, replacing human labour with underemployment and casualized jobs.
Financialization: High interest rates discourage investment in productive sectors, as capitalists prefer high profits from financial assets, further exacerbating unemployment.
Private Sector Role: The private sector demands favourable conditions before investing, leading to an investment strike that contributes to the decline in economic growth and job creation.
Government Critique: SAFTU criticizes the government for continuing neoliberal policies, including fiscal consolidation, which cuts vital social programs, hindering economic growth and job creation.
Economic Growth Stagnation: SAFTU concludes that economic growth, job creation, and poverty alleviation will remain elusive unless both public and private sectors cease their investment strikes.
