Minister Thulas Nxesi has emphasised the importance of collaboration between the government and other stakeholders to mitigate unemployment and stimulate economic growth.
Nxesi, the Employment and Labour Minister, said this at the Mpumalanga provincial government’s launch of the labour activation programme (LAP).
“The labour activation programmes are not a silver bullet to end the challenge of unemployment, but they are a viable force multiplier that can be used together with other initiatives and interventions as part of the government’s response to mitigate unemployment,” he stated.
Numerous dignitaries, including premier Refilwe Mtsweni-Tsipane, attended the event on Wednesday at the eMnotweni Arena in Riverside Park, Mbombela.
The LAP, a nationwide initiative, aims to create employment opportunities across various sectors and industries by partnering with public and private entities.
In the last quarter of 2023, South Africa’s unemployment rate was recorded at 32.1%.
Immediate action needed for job-creation
Most unemployed individuals had educational attainment below grade 12 (matriculation), while about 34% had completed their matriculation.
Nxesi emphasised the importance of the LAP in addressing the ongoing problem of unemployment, particularly in light of the Covid-19 pandemic-exacerbated economic downturn.
He stressed that while substantial economic growth is crucial for long-term solutions, immediate action is needed to support job-creation and preservation.
The LAP’s funding model includes a sliding scale of financial support, with 70% of partners contributing and a maximum of 30% being non-contributors.
This ensures a balanced approach to resource allocation, with a focus on projects that have the potential to generate sustainable employment opportunities.
With a budget of R660-million allocated to 17 recommended projects, the programme is expected to benefit over 20 000 unemployed people in various sectors such as agriculture, manufacturing, construction, information and communication technology, hospitality, media, and engineering.
Role of the UIF
Nxesi further underscored the role of the Unemployment Insurance Fund (UIF) in funding labour activation programmes.
The UIF, known for providing unemployment and maternity benefits, plays a crucial role in supporting initiatives aimed at mitigating unemployment and fostering economic development, he said.
“Collaboration with the provinces, including the sharing of databases, will assist in project collaboration, recruitment, funding, building partnerships, and eliminating duplication,” he said.
“Projects will be monitored at the district level to ensure an even spread across the province.
“A key benefit to us with this approach is the shared responsibility of managing and monitoring projects.
“Through our implementation, we will consider a fair mix of former UIF contributors and new employment seekers.”
Contractual agreements
The minister reiterated the government’s commitment to ensuring the success of the LAP through effective implementation and monitoring.
He emphasised the importance of clear contractual agreements, service level agreements, and performance metrics to measure the impact of the programme.
“It is important to highlight that the ultimate countrywide target is 2-million opportunities over three years, which has been adopted and signed off by the department.
“We will continue to explore viable ways to create jobs and a better life for all.”
