Another R11 billion pumped into the Presidential Employment Stimulus

MINISTER in the Presidency Mondli Gungubele briefs the media on the outcomes of the Presidential Employment Stimulus. Picture: GCIS

MINISTER in the Presidency Mondli Gungubele briefs the media on the outcomes of the Presidential Employment Stimulus. Picture: GCIS

Published Oct 14, 2021

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PHASE 2 of the Presidential Employment Stimulus has kicked off, with a total of R11 billion set aside by the National Treasury for the programme.

This was revealed by Minister in the Presidency Mondli Gungubele on Thursday.

The massive injection of funds will support the continuation of some programmes from Phase 1 of the Presidential Employment Stimulus, as well as a range of new programmes.

Gungubele, alongside Public Works and Infrastructure Minister Patricia De Lille, and the Employment and Labour Minister Thulas Nxesi, led a media briefing to reflect on the outcomes of Phase 1 of the Employment Stimulus.

The Presidential Employment Stimulus was first announced by President Cyril Ramaphosa in October 2020, as part of the government’s response to the economic impact of the Covid-19 pandemic.

Gungubele indicated that more than 550 000 jobs and livelihoods have been supported to date, as part of Phase 1, with an overall target of 694 120 opportunities.

He said that several programmes are still in implementation, and they expect this number to increase further.

“The first phase of the employment stimulus has provided valuable lessons for what we can achieve if we set our ambitions higher, if we forge strong partnerships with organisations across society, and if we work together across government,” he said.

According to Gungubele, the recruitment of 287 000 young people, as school assistants, was already under way and participants will be placed in November.

Phase 2 will include the establishment of a new Social Employment Fund and will also support the Presidential Youth Employment Intervention, including the establishment of the national Pathway Management Network, the revitalisation of the National Youth Service, and a new model of skills training for unemployed youth, linked to employment.

“Unemployment is the single greatest challenge that we must confront as a society. The continued success of the employment stimulus reflects the government’s commitment to address this challenge and to support employment while the labour market recovers,” Gungubele said.

Eleven national departments were responsible for implementing programmes supported by the stimulus in Phase 1.

The main objective of the stimulus is to use public investment to create jobs rapidly and at scale to provide support to those who need it most. In addition to creating jobs and supporting incomes, the stimulus aims to support local economic recovery, by providing a wider stimulus for consumer spending in poor communities.

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Political Bureau