Economic analyst, Duma Gqubule, says he does not believe that Finance Minister Tito Mboweni’s strategy to help reduce the unemployment rate will have a major effect in the short term.
A document, released this week by Mboweni, outlines the country’s economic recovery strategy through various interventions.
It recommends plans to stimulate labour intensive sectors, such as agriculture, to create jobs.
Gqubule says the country needs to create far more jobs, than what’s outlined in Mboweni’s strategy to reduce the unemployment rate.
“Most of recommendations will have zero impact on economic growth in the short-term. Further down in the document it says it will create 142-thousand jobs in the first three years. That’s a drop in the ocean in terms of a number of jobs we have to create as an economy. As an economy we have 10.2 unemployed people and that is increasing by four-to-500 thousand every year. To create 142-thousand jobs in 3 years is just a drop in the ocean that won’t make a difference to the unemployment crisis.”