NEWS

Radebe Says Unemployment Is Unlikely To Drop Any Time Soon

Jeff Radebe says the sluggish domestic and local economies are bad for jobs.

28/03/2017 11:30 SAST | Updated 28/03/2017 11:34 SAST
Waldo Swiegers/Bloomberg via Getty Images
Jeff Radebe, South Africa's minister of the presidency, gestures as he speaks during a news conference ahead of the mid-term budget speech in Cape Town, South Africa, on Wednesday, Oct. 26, 2016. While South Africa's Finance Minister Pravin Gordhan forecast in February that the economy would grow 0.9 percent this year, soft commodity prices, a lackluster global economy and a crippling drought have put that target beyond reach. Photographer: Waldo Swiegers/Bloomberg via Getty Images

Minister in the Presidency Jeff Radebe says unemployment rates are unlikely to drop so long as local and global growth remains low, according to Business Day.

According to Business Day, SA grew by 0.5% in 2016 and Treasury expects growth of 1.3% in 2017 — well below the National Development Plan's (NDP) target of 5.4%.

Unemployment is at about 27% and climbing.

Radebe reportedly made the remarks in a reply to a parliamentary question on Monday. He said there might be a small recovery in growth by 2020, when the country might grow at 2%.

Business Day quoted Radebe saying: "Unemployment rates are likely to remain high with lower growth. As part of the global economy, SA is not immune to the challenges facing other countries."

He reportedly said that despite the weak "economic environment" , and that external factors had severely impacted on the economy. But there was some progress, he reportedly said.

For example, the 2014-2019 medium–term strategic framework mandated different government bodies to align their plans to the NDP. This was to ensure policy coherence across government.

"The medium term strategic framework outlines programmes and key interventions, particularly in core productive sectors," said Radebe.