Question NW1149 to the Minister of Finance
26 May 2017 - NW1149
Figg, Mr MJ to ask the Minister of Finance
In view of the fact that the seasonally adjusted unemployment rate in the fourth quarter of 2016 increased to its highest level since the global financial crisis, what steps does he intend to take to decrease the unemployment rate, bearing in mind that the National Development Plan set a target of 6% by 2030?
Reply:
The prevailing unemployment rate remains ominously high. To address the high unemployment rate will require greater effort to reignite growth in the economy. Government is focusing on three main areas: restoring investor confidence, improving the ease of doing business and implementing structural reforms to ensure inclusive growth. Extensive engagement with social partners should reinforce efforts to improve labour relations.
Government’s plans to reduce inequality and poverty; raise employment; and raise the standard of living of all South Africans is guided by the National Development Plan (NDP) supported through the allocation of budget resources according to the NDP priorities and direction.
The National Treasury oversees the following specific programmes to address unemployment, namely:
- the employment tax incentive which seeks to reduce the risk of hiring young, inexperienced workers;
- the learnership incentive which seeks to encourage the development of skills; and
- the Jobs Fund, which seeks to support innovative ways to support employment creation.
Additional details on government programmes to address unemployment can be directed to relevant departments such as Department of Labour, Department of Higher Education etc.