Urgent policy reforms needed to generate jobs and skills – IRR

In its first 100 days, the Government of National Unity (GNU) has helped strengthen the rand, bring down bond yields, and put South Africa back on the (potential) investment map. But achieving the GNU’s key goals – increasing growth and reducing unemployment – now needs urgent policy reforms.

Coercive labour laws must be amended to help create millions more jobs. Other policy interventions are needed to resolve the chronic skills shortage limiting employment and productivity.

These interventions range from the scrapping of the bureaucratic Sector Education and Training Authority (SETA) system to a rethink of the funding model for both universities and Technical Vocational Education and Training (TVET) colleges.

These are some of the key points in a new report from the Institute of Race Relations (IRR), entitled Generating Jobs and Skills for Growth and Prosperity. This is the latest report in the IRR’s Blueprint for Growth series.

“With 8.4 million South Africans now unemployed, overcoming the joblessness crisis is a political, economic and moral imperative,” says Dr Anthea Jeffery, IRR Head of Policy Research and author of the report.  

Adds Jeffery: “The GNU should roll back labour laws that price the unskilled out of jobs and push up the costs and ‘hassle factor’ in taking on more staff.

“Vested interests will try to stop these reforms, but the task is well within the GNU’s remit and will win it broad support among voters – most of whom have long identified the unemployment crisis as their main concern.”

Overcoming the skills shortage is a complex challenge that needs to be tackled in various spheres: from dysfunctional schools to failing universities, TVET colleges and SETAs.

Says Jeffery: “Often, what is most required is to remove the heavy hand of the state. In addition, though government funding for education and training is vital, this does not mean that an inefficient and often corrupt state must be involved in delivery as well.

“The solution lies largely in tax-funded education vouchers. These go directly to students and their families and follow them to the institutions of their choice. Institutions must then compete for the custom of students by keeping efficiency up and costs down.”

You can read the full report here.

 Media contact: Hermann Pretorius IRR Head of Strategic Communications Tel: 079 875 4290 Email: hermann@irr.org.za

Media enquiries: Michael Morris Tel: 066 302 1968 Email: michael@irr.org.za