Report calls for job centred labour policies

According to Allafrica.com, the Annual Labour Market Bulletin (ALMB) report released by the Department of Labour (DoL) said South Africa might need to strengthen job centred policies to reduce the risk of growing long-term unemployment. Issues to be considered include "well-designed active labour market policies, work sharing arrangements and targeted measures to support vulnerable groups, notably youth."

Reflecting on the labour market, the report said that the financial year 2008/09 proved to be an extremely challenging year economically with revenues remaining relatively flat and firms focusing on cost cutting. Ultimately, a sharp drop in economic activity led to dismissals, mass-layoffs, plant closures and hiring freezes - contributing to high unemployment in the country.

It is noted that over one million jobs have been lost across sectors in the economy during recession. The DoL's director of Labour Market Information and Statistics Abrahams Mutedi told Allafrica.com the persisting unemployment situation calls for development of job specific projects for the unskilled while focusing on variables like wage subsidy in order to lessen the burden placed on the unemployed.

The ALMB report calls on South Africa to strengthen domestic industries like agriculture and construction so that the low and semi-skilled unemployed youth can be absorbed into these industries. It stressed that the agriculture and construction sectors have a high propensity to absorb the growing army of job seekers immediately, unlike other sectors where skilling, is key.

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