The ANC's proposed job seekers' grant has been met with far less enthusiasm than the abandoned youth employment subsidy.
"The job seekers' grant will have nowhere near the impact the youth wage subsidy would have had," Adcorp labour market analyst Loane Sharp said.
"The change from the unemployment subsidy to a job seekers' grant involves such a totally different economic method of working that it's not clear that the ANC has identified the problem of unemployment correctly."
The ANC resolved at its June policy conference to include a job seekers' grant as part of the comprehensive social security package, in response to submissions by the National Youth Development Agency and the ANC Youth League.
The party has shown no appetite for the youth wage subsidy put forward by national Treasury last year in an attempt to alleviate the high youth unemployment rate.
Treasury estimates that unemployment among those under the age of 25 years, is about 50%, accounting for 30% of total unemployment.
The two-year subsidy for employers who take on first-time workers, could create 178000 new jobs at a cost of R28000 each, the Treasury said.
The subsidy was meant to be put into effect in April this year, but had been stuck in negotiations.
Cosatu is strongly opposed to the subsidy, arguing it would give companies an incentive to let go of existing workers.
Sharp said the grant would subsidise the cost of recruitment, which was unnecessary.
But the youth wage subsidy, could have created more than 500000 jobs.
"Our own estimates suggest Treasury was conservative in estimating the number of new jobs that would be created."
No big hooray for job seekers
The ANC's proposed job seekers' grant has been met with far less enthusiasm than the abandoned youth employment subsidy.
"The job seekers' grant will have nowhere near the impact the youth wage subsidy would have had," Adcorp labour market analyst Loane Sharp said.
"The change from the unemployment subsidy to a job seekers' grant involves such a totally different economic method of working that it's not clear that the ANC has identified the problem of unemployment correctly."
The ANC resolved at its June policy conference to include a job seekers' grant as part of the comprehensive social security package, in response to submissions by the National Youth Development Agency and the ANC Youth League.
The party has shown no appetite for the youth wage subsidy put forward by national Treasury last year in an attempt to alleviate the high youth unemployment rate.
Treasury estimates that unemployment among those under the age of 25 years, is about 50%, accounting for 30% of total unemployment.
The two-year subsidy for employers who take on first-time workers, could create 178000 new jobs at a cost of R28000 each, the Treasury said.
The subsidy was meant to be put into effect in April this year, but had been stuck in negotiations.
Cosatu is strongly opposed to the subsidy, arguing it would give companies an incentive to let go of existing workers.
Sharp said the grant would subsidise the cost of recruitment, which was unnecessary.
But the youth wage subsidy, could have created more than 500000 jobs.
"Our own estimates suggest Treasury was conservative in estimating the number of new jobs that would be created."
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