EDITORIAL: For more jobs, support businesses and cut grants
In giving handouts to the unemployed, the government seems almost to give up on creating more openings
When President Cyril Ramaphosa promised in the depths of the Covid-19 pandemic that the state would spend R200bn on helping to save lives and livelihoods, much of this was smoke and mirrors and the money that eventually flowed wasn’t a fraction of that total.
But there were two big success stories regarding helping citizens survive the devastating economic effects of the pandemic and the accompanying lockdowns. One was the Temporary Employer-Employee Relief Scheme. It was funded from the Unemployment Insurance Scheme, which paid out R64bn in 2020 to subsidise the wages of almost 6-million workers. It was a labour market measure that ensured cash flow for companies that had to shut down, and income for employees who were laid off or took pay cuts. It is estimated to have saved almost 2-million jobs. ..
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