The SA Daily
11 July 2019
SA jobs in crisis
- Steel manufacturer ArcelorMittal SA plans to cut 2,000 jobs as it restructures in order to cut costs. The SA manufacturing sector, including steel, faces rocketing electricity, rail, port and raw material costs, while domestic demand and construction activity has been low. Cheap imports further complicates matters for this sector.
- Per the Q1:19 payrolls data, the basic iron and steel subsector added just 323 jobs, taking total employment in this subsector to 29,380 workers. Employment in the basic iron and steel subsector has declined 38% (17,846) since Q3:09, while total manufacturing employment has just managed to hold steady. SA therefore needs concrete reforms to support growth and employment; in addition, industry-specific measures have become most pressingly urgent.
- The SA economy has since December 2013 suffered the longest though not the deepest economic downturn. The widespread lack of jobs is further exacerbating the already sluggish SA economy. The global economy too is fragile, with trade wars, the Brexit saga and global geopolitical tensions failing to assist the SA economy.
- There has been widespread focus on the president’s reform agenda to grow the economy faster than population growth and create 2m jobs for the youth over the next 10 years.
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