SA is missing out on a potential 1/4 million jobs
- Published on 31 Jul 2013
- HR Pulse News Desk
Fin24 reports that in President Zuma’s State of the Nation address, he stated that the economy needs to grow “three-fold” so that jobs can be created. However, Business Day reports that this has not been possible because of government’s spending habits.
A KPMG report, which looks into spending and the National Development Plan (NDP), states that a potential 250 000 jobs could be created per year if government increased their spending by 30%.
The report noted that the public and private sectors will need to increase investments significantly if 11 million jobs are to be created by 2030, as per the NDP.
"By increasing private sector investment in SA to at least 20% of GDP and government investment to 10% of GDP, we could assist in addressing the unemployment problem,” said Lullu Krugel, senior economist at KPMG in SA.
Krugel said this could potentially create 3.75 million job opportunities a year at the end of the NDP period.
