The government has increased the budget for job creation amidst rising unemployment rates.
Finance Minister Enoch Godongwana revealed this during his maiden budget speech address at the National Assembly sitting at Cape Town City Hall on Wednesday.
Over R22.2-billion has been set aside for job creation and labour affairs for the 2024/2025 financial year.
According to Statistics SA (Stats SA), South Africa witnessed shifts in its employment landscape in the previous financial year.
The statistician-general, Risenga Maluleke, on Tuesday revealed an uptick in unemployment for the last quarter of 2023. This places the youth unemployment rate at 44.3%, up from 43,4% in the third quarter.
The official unemployment rate climbed to 32.1% in the fourth quarter, marking a 0.2 percentage point rise from the previous quarter.
The data presented a concerning trend, such as nearly 22 000 fewer individuals in employment. This has left a total of 16.7-million people employed.
Unemployed now total 7.9 million
Concurrently, the number of unemployed individuals increased by 46 000, totalling approximately 7.9 million. This is a setback for the ANC government, which is campaigning to retain its support base at the polls in May.
“South Africa’s limited public resources have been under significant strain for over a decade,” National Treasury director-general Dr Duncan Pieterse outlined.
“Economic growth has averaged only 0.8% since 2012, far below the level needed to address joblessness and poverty.”
To cure the unemployment surge, in the allocated job creation budget, R7.4-billion will be used for the presidential employment initiative for the 2024/2025 fiscal year.
The initiative, which was introduced in 2020 to address unemployment, has assisted almost two million people through job creation, retention, income, and skills support interventions.
The Treasury said over R4-billion will be allocated for the hiring of more assistant educators at the basic education level.
Meanwhile, over R1-billion will be used for the social employment fund to bolster employment in local municipalities.
“The Cities Public Employment Programme will receive R650-million to create employment in local communities and townships to assist with upgrading informal settlements, developing township economies, conducting maintenance, and developing and managing public spaces and assets.
“The National Youth Service will receive R250-million to support youth employment initiatives. The National Pathway Management Network will receive R250-million to help connect unemployed people to job opportunities.”
Boost for food security
An additional R750-million will be directed to the food security and livelihoods programme to aid farmers with agricultural inputs.
“The government is supporting the manufacturing sector, small businesses, and public employment programmes to boost economic growth and employment.
“In 2024, an independent evaluation will be conducted on public employment programmes to address fragmentation and inform future funding decisions.”
