South Africa’s unemployment rate has hit a new high, with
36,4% of working age people out of work or no longer looking for a job.
In the current environment of flat or no growth, with large
firms slashing jobs and small firms just hanging on, any talk of new jobs may
seem wishful thinking. A negative attitude towards the future is
self-fulfilling, so we must craft a future of positive outcomes based on
realistic scenarios.
In the NDP’s scenario, 90% of the 11 million new jobs we
need by 2030 will come from small business. The NDP is already 5 years old,
written at a time when SA’s economy was growing at around 3%. Now growth is
less than 1% and a further ratings downgrade in December (or earlier) would
undoubtedly keep it there, or worse. So is it realistic to expect small
businesses to hire people in such depressed conditions?