'To reduce poverty the quality of the type of job is very important'
File photo. CREDIT: Reuters File photo. CREDIT: Reuters
The World Bank presented their South African Economic Update to the National Assembly’s Standing Committee on Appropriations in Parliament on Wednesday.
The Committee on Appropriations said that they were awaiting the budget speech on February 22, as a means to make sure the budget focuses on financing the objectives on the National Development Plan [NDP].
The NDP anticipated a need to create 11 million new jobs between 2012 and 2030 as a means to bring the unemployment rate down to six percent making the job creation goal 600 000 jobs per year, however, the stride of job creation over the past decade has been too slow to reach the given target.
“There is growing evidence that it lost steam with the end of the commodity cycle.”
“Labour is the Main Income source of most South African citizens, and raising labour remuneration for the poorest segments of society is the most effective instrument to reduce poverty and inequality,” the world bank economic update on private investments for job creation said.
Research done by the World Bank stated that despite job creation moving at a quicker pace since 2004 it still could not keep up with the number of people starting to seek jobs, however, between 1993 and 2015 “the private sector created 2.65 million formal and informal jobs,” while “government services created an additional 470 000 jobs”.
Graphs by the World Bank indicated that jobs were mainly created in services, and mainly lost in agriculture, mining, and manufacturing.
“To reduce poverty the quality of the type of job is very important,” World Bank Program Leader Sébastien Dessus said.
“The economy has become more capital intensive,” he added