Job creation initiatives under way

Cape Town – In the context of an unfavourable economic and investment climate, the unemployment rate rose from 25% to 26.6% in the 12 months to June 2016, stated Finance Minister Pravin Gordhan on Wednesday in his medium-term budget policy statement (MTBPS). 

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According to the June 2016 Quarterly Employment Statistics, all sectors apart from construction shed jobs in the second quarter of 2016. A return to employment growth requires higher economic growth and renewed private-sector investment.

Private sector investment has yielded a number of job opportunities, most notably through the Independent Power Producers (IPP) programme. Other areas include automotive assembly.

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Firms have pledged investments of R15.4bn, which would create an estimated 4 675 jobs. 

Public and private investment totalling R17bn has been targeted towards the “oceans economy” over the past two years, creating about 5 000 jobs. Investments support shipbuilding and training of marine engineers and artisans.

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Another job-creating initiative includes a R1.5bn fund to support small firms with the ability to scale up and create jobs, and a private-sector programme to create 1 million internships over a three-year period, focused on improving the job-readiness of young work seekers. 

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