World economy affecting the SA job creation

South Africa failed to keep the promise of creating five million jobs by 2020- said by Jacob Zuma on Wednesday. Upon being asking the reason by the National Council of Provinces, the president blamed the world economy for their failed attempt of job creation.

He further added “It was needed to create half a million of jobs every year starting from 2010 to 2020 to achieve our goal of creating five million jobs in 10 years.”

He told MP’s that “However this has not happened because the world economy had yet to be recovered from the ongoing global financial crisis.”

Zuma said further that demand for South African products by the country’s key trading partners was comparatively low. Therefore local firms were confused of whether investing in newly started factories would incur them additional sales or not.

Also some industries are not giving the required output and producing at sufficient levels because of the internal disputes.

Michael de Villiers- the democratic alliance raised a question saying that unemployment in South Africa had increased by 122,000 during the second quarter of this year, and the rand was now worth R10.56 to the dollar. So, he asked Zuma that “Don’t you think that it is now the exact time to debate in the parliament for the unemployment and the creation of jobs in South Africa?”

The NCOP chairman Mninwa Mahlangu advised Zuma that he was not forced to answer this question.

Zuma said “the global economy is under pressure, of which the EU (European Union) is most pressurised.” Europe along with the US were the major trading partners in South Africa.

He further said that “We had thought of a growth at a particular level but, we could not reach at that level because of the economy.”

Lindiwe Mazibuko- the DA parliamentary leader said that she was interested to hear Zuma as it was the second time the president responded to the questions of NCOP.

Dennis Bloem asked Zuma to reveal exactly about what is going on in the country with the reasons why more and more people are losing their jobs and the mines firing many workers from their jobs.

But the president said that the government is not needed to describe why the mine companies are following job cut off’s and what they need to do and what not to do.