By Lee-Yandra Paulsen
Union Federation Cosatu has called for a Medium-Term Budget Policy Statement that decisively addresses unemployment and stimulates South Africa’s struggling economy. The country’s official unemployment rate has risen from 32.9% in the first quarter to 33.5% in the second quarter. Cosatu’s Parliamentary Coordinator, Matthew Parks, stressed that both the government and the private sector must recognize the severity of the crisis impacting the unemployed and their families.
Parks expressed deep concern over the rising unemployment rate, noting, “It is quite worrying that unemployment has increased by 0.7%. The broader unemployment rate is now at 42.6%, and we cannot have a country where six out of seven young people can’t find work. This marks the third consecutive quarter of rising unemployment, which is a very worrying trajectory. We must treat this as a national crisis, our number one challenge as a country.”
He emphasized the urgency of addressing this issue, stating, “There is no choice; this has to be fixed. We can’t have a country where so many are unemployed and unable to find work. It’s simply national suicide. We need to focus on the basics—if we fix Transnet like we’re fixing Eskom, it will not only stop the job losses but also create new jobs, driving economic growth.”
Parks also highlighted the importance of supporting municipalities, particularly in rural areas, to ensure the provision of basic services that impact local businesses. “We have to deal with these issues quickly to prevent further economic decline,” he added.
Addressing the issue of social grants, which many South Africans rely on, Parks commented, “Government welfare and financial support reach about 27 million South Africans through social grants, which is good for short- and medium-term relief. However, we don’t want to leave people dependent on grants without resources or opportunities. We want to see the SRD grant raised to the food poverty line and paired with skills training and employment opportunities. Ultimately, we aim to reduce the number of people on social grants by transitioning them into employment.”
Parks’ remarks underscore the need for immediate and comprehensive action to address the unemployment crisis and create a sustainable path forward for South Africa’s economy.
Listen to the full interview below.
VOC News
Photo: Pexels
