Workers Day Reminds Us of the Unemployed and Discouraged

Workers Day Statement issued by: Anchen Dreyer, DA spokesperson on Labour
30 April 2008

While commemorating the contribution of workers to society, Worker’s Day also serves as a stark reminder of South Africa`s chronic unemployment problem and the challenges faced by the millions of unemployed and discouraged workers in society. The Democratic Alliance (DA) would also like to convey our sympathy and support for the Nationwide staff who are currently facing an uncertain future amid the airline abruptly ceasing operations. While South Africa`s narrow unemployment rate of 23 percent is alarmingly high, the broad definition of unemployment at 36 percent is reaching crisis proportions.

Disturbingly, the number of discouraged workers is on the rise in South Africa. Specifically, the number of discouraged job-seekers have increased by 431 000 to 3.4 million between September 2001 and September 2007. The 3.9 million narrowly defined unemployed in the years to September 2007 indicates that there are almost as many discouraged job-seekers as there are active job-seekers.

With unemployment at such high levels, the government`s priority must shift towards job creation.

The August 2007 International Monetary Fund (IMF) country report notes South Africa’s high unemployment rate and emphasises the need for government to identify and revise labour market regulations that discourage job creation.

The DA has long contended that relaxing onerous labour laws will make it easier for both the unemployed and the growing volume of discouraged job-seekers to enter the job-market. While still protecting labour, government must find a level of protection that is consistent with the priority of maximum job creation. Particularly on Worker’s Day, the political and social role that trade unions have played in the South African landscape must also be underscored. The primary role of trade unions is to raise the wages and improve the working conditions of their members relative to non-unionised workers. As such, trade unions prevent (usually low-skilled) workers, who are willing to accept lower wages to secure an exit from unemployment, from entering the job market.[1]

This Worker’s Day must be used to address the growing challenges faced by the unemployed if we are to realise our goal of reducing poverty and halving unemployment by 2014. Government must consider how labour market policies and trade union actions affect unemployment and the prospects of millions of South Africans.

[1] Jasson Urbach, The role of labour unions in post-apartheid SA, The Free Market Foundation, 4 March 2008