Private sector needs a dose of ‘creative destruction’
It is time for South Africa’s leaders to shake up the status quo and consider new approaches to unlock job creation
Governments do not create many jobs. Globally they employ about 10% — and in South Africa only 6%-8% — of the workforce. Instead, the role of governments is to create an environment where the private sector can drive employment.
However, it is fair to say that South Africa has struggled to create such an environment over the past 15 years, with limited economic growth and job opportunities for its expanding labour force. With unemployment at more than 30% (excluding discouraged work seekers) and two-thirds of young workers jobless, improving conditions for private sector growth is more urgent than ever. These challenges have kept poverty and inequality entrenched, with nearly 39-million people surviving on less than R127 a day, equivalent to the $6.85 poverty line for upper-middle income countries. ..
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