When you test this mandate against the scary statistics reflecting that we have the highest level of youth unemployment globally, then it must be asserted that the department needs to pull up its socks and ensure that economic efficiency is achieved and that the labour markets can absorb the unemployed.
The unemployment rate among all 18-to 24-year-olds is 51%, more than twice the national unemployment rate of 25%, according to the latest South Africa Survey, published by the South African Institute of Race Relations.
The department has done relatively well with regard to protecting labour rights through legislation and policy. However, more often than not, this has not translated into changing the practices in the workplace. It also appears that race still plays a significant role in the determination of unemployment.
It begs the question of the effectiveness of the policies if statistics still show today that unemployment is highest among African women aged 18 to 24 years, at 63%. Youth unemployment is lowest among Indian men at 15%, and the youth unemployment rate varies considerably between the races, at 57% among Africans; 47% among coloured youths; 23% among Indians; and 21% among whites. These statistics are very much a reflection of the past, and they are an embarrassment.
There are other arguments, however, that hold merit with regard to recent moves in amending legislation, and such arguments cannot be ignored. Many allege that what our legislation has set as minimum wages is, in fact, a barrier to job creation. It is economically impossible for employers to pay employees more than their worth and more than they can create, or hire employees that they do not need. Companies that try to do this go bankrupt.
If the government truly wants to create jobs, it will try to find ways of enabling South Africans to create wealth. That is the only way out of the unemployment mess. The UCDP supports the budget. Thank you. [Applause]