Mashatile: Economy still feeling impact of Covid-19

Mashatile delivered the keynote address at the National Economic Development and Labour Council (NEDLAC) Summit in Midrand on Friday.

The deputy president lauded NEDLAC for the work its done to shape the labour market since 1994.

"It was instrumental in the talks that resulted in the Basic Conditions of Employment Act, the Labour Relations Act and the Employment Equity Act.  All these pieces of legislation were enacted to give effect to the rights guaranteed by the Bill of Rights in our Constitution.

"You have also promoted inclusion, consensus, and sustained socio-economic development in South Africa through your persistent efforts. However, our labour market has experienced several obstacles.

"The current condition of the labour market is indicative of the abiding legacy of our apartheid past, which presents a significant challenge today. We have inherited a labour force characterised by racial and gender inequities, skills shortages and high unemployment rates, particularly among Africans."

He adds that although the unemployment rate has declined to 32.6% in the second quarter of this year, down from 32.9% in the first quarter, the impact of Covid -19 can still be felt.

"The Covid-19 pandemic has further intensified economic setbacks, resulting in increased unemployment and loss of jobs affecting various groups differently and causing a complex and multi-dimensional phenomenon that affects different groups of people differently.

"The best that can be said here is that the trend is heading in the right direction, albeit at a slow pace. Serious concerns, such as job losses in manufacturing, remain. In this regard, organised business, labour, government and the community sector at NEDLAC have turned to each other to seek ways of turning our economy around, reversing unemployment and building inclusive growth."

READ FULL SPEECH BELOW: