The Public Servants Association (PSA), remains concerned about the continuing economic instability facing the country and the threat of job losses following the release of the first quarter Gross Domestic Product (GDP) figures by Statistics South Africa (StatsSA) on 4 June 2019.
The decline in the economy by 3.2%, is the biggest drop in ten years and is much higher than the 1.7% drop that was forecasted by many economists. The PSA that represents thousands of public-sector employees pointed out that the decline comes at a time when the unemployment rate has already increased to 27.6% with the youth unemployment rate at over 50%.
The Union pointed out that South African are still paying for the compounded effects of fraud and corruption has on the economy. With the government announcing an ambitious target for the next five years to bring down unemployment levels to 14%, the PSA is concerned about the absence of clear plans to turn the economy around and stem unemployment amidst fresh reports of large-scale job losses in the banking, mining and various other sectors.
The PSA supports calls by the Federation of Unions of South Africa (Fedusa) for the new Minister of Employment and Labour to ensure that more is done to prevent retrenchments and for National Treasury to intervene and assist those sectors that are already under economic pressure.