The Democratic Alliance (DA) in the Northern Cape notes that the Quarterly Labour Force Survey for the fourth quarter of 2024 reports quarterly decreases in both the expanded and official unemployment rates for the province, bringing it to 39.7% and 27.4% respectively.
While it may be tempting to welcome these decreases, the reality is that there is very little to celebrate about the economic prospects of a province where four out of every ten people remain unemployed. The quarterly decreases are mostly due to seasonal employment of semi-skilled workers in the agricultural sector, which comes to an end when the seasons change. As it is not linked to sustainable growth or development, it suggests that we can expect increased unemployment levels in the next quarter.
This underscores the urgent need for economic development that goes beyond grandstanding about industrial parks built in towns without the necessary bulk infrastructure and special economic zones implemented by an agency that is currently under investigation by the SIU for maladministration dating back to its inception. To start with, we need investments in road, rail and port networks to make economic activity easier and we need upgraded municipal infrastructure to ensure reliable water and affordable electricity supply to businesses.
Most of all, we need an overhaul of the provincial government’s finances to ensure that state spending truly supports SMMEs and entrepreneurs rather than serving as a vehicle of political patronage.
At a time when four out of every ten people in the province are unemployed, we cannot afford to let a single cent go to waste.