SA's labour model 'not creating jobs'

SA’s rising unemployment rate is evidence that the country’s current labour model is inadequate to stem the shedding of jobs, says labour expect and director of employment practice at Cliffe Dekker Hofmeyr, Hugo Pienaar, in a report on the Polity site. The data points to the overt failure of the country's current labour market scheme, making it necessary to revisit internal policies and take inspiration from the successes of other countries. Pienaar says a useful example was Ireland, where government, business and labour formed a social accord during the 1990s which yielded positive results for job creation. Lessons would also be learned from Germany where the government imposed labour market reforms between 2003 and 2004 to quell rising unemployment. But Pienaar warned it would be a mistake to simply replicate international labour markets or trends in SA as each country had its own unique labour market climate and challenges. Also, Pienaar said, world trends had shown that the growth in the creation of employment did not necessarily lie in the formal sector, making it important to have employment-friendly legislation in place.

Full report on the Polity site