Govt-Business Partnership Boosting Job Creation Amid Economic Challenges

In her statement on Thursday, Minister Meth addressed the recently released Quarterly Labour Force Survey (QLFS) report for the second quarter of 2024 by Statistics South Africa (Stats SA).

Employment and Labour Minister Nomakhosazana Meth has expressed optimism about the strengthened partnership between government and business, which she believes will significantly enhance economic growth and pave the way for increased job creation in South Africa.

In her statement on Thursday, Minister Meth addressed the recently released Quarterly Labour Force Survey (QLFS) report for the second quarter of 2024 by Statistics South Africa (Stats SA). The report indicated a rise in the official unemployment rate from 32.9% in the first quarter to 33.5% in the second quarter. However, the Minister highlighted the positive growth in the labour force, noting that the number of employed persons has increased from 14.1 million in the second quarter of 2020, during the COVID-19 pandemic, to 16.7 million in the same period in 2024.

Meth commended the decrease in unemployment rates in Limpopo, Free State, and the Eastern Cape, describing these improvements as encouraging despite the challenging economic environment.

“While the government has implemented interventions to address load shedding and resolve transport and logistics challenges, economic growth has not met expectations. This sluggish growth is partly due to global economic pressures and geopolitical factors beyond South Africa's control,” Meth stated. She emphasized the need to elevate the partnership between government and business, expressing hope that this collaboration would lead to economic growth and job creation.

Meth underscored the central role of her department in coordinating efforts to combat unemployment. The Unemployment Insurance Fund (UIF) is contributing to the Presidential Youth Employment Initiative, which is set to employ one million young people as school assistants across more than 23,000 schools in South Africa.

In the 2023/2024 financial year, the department played a vital role in preserving jobs, saving 14,887 positions through the Commission for Conciliation, Mediation and Arbitration (CCMA) dispute resolution mechanisms. Additionally, Productivity South Africa's business turnaround and recovery programme assisted 71 enterprises, resulting in the preservation of 5,390 jobs.

As Minister Meth approaches her first 100 days in office, she remains focused on refining and repurposing the strategic direction of the department to sharpen its employment mandate and deliver tangible results. The Minister, who was appointed in June, is committed to ensuring that the department's efforts align with the priorities of the 7th administration, particularly in addressing youth unemployment.

The department continues its efforts to preserve jobs through a funding agreement between the UIF and Productivity SA, projected to benefit 226 companies and save 11,300 jobs over the next three years.

“Aligned with the three priorities of the 7th administration, my department must adopt a collective approach and vigorous coordinated efforts to change the current situation, particularly with regard to youth unemployment,” Meth concluded.