Economist Professor Andre Roux, from the Stellenbosch School of Business, says the latest increase in unemployment, up by one percentage point reflects deeper structural issues.

“One possible reason is that the economy is not growing. And even if it can grow, that doesn't guarantee job creation,” Roux explained. “You can grow the economy using technology and machinery rather than labour.”

He added that businesses often opt for machines because of fewer regulatory burdens. “Ironically and paradoxically, if I want to expand my production as a business, there's no law that obliges me to employ labour. However, if I do employ labour, I am subjected to a whole range of laws. So it’s almost paradoxical whereas if I buy a machine or use a robot, I avoid those complications,” said Roux.


--ChannelAfrica--