South Africa

Gauteng’s unemployment hits 34% as job losses mount

As Gauteng’s unemployment rate reaches 34%, Premier Lesufi faces increased pressure to address issues stalling job growth and improve conditions for sustainable employment in the province.

This comes after Lesufi confirmed earlier this year that the Nasi Ispani mass recruitment programme would continue under the seventh administrative government.

Since its launch in June 2023, the programme has seen thousands of jobs being offered however some political parties continue to question the legitimacy of the jobs programme.

After being in limbo regarding the extension of the programme by the national government Gauteng government said its beneficiaries would continue to be employed.

Lesufi stated that the provincial government received correspondence from the national government indicating that the Nasi iSpani will continue.

He, however, explained that it is still being determined whether the Nasi iSpani programme will continue to be temporary or permanent employment.

In May this year, the director-general of Gauteng government, Edward Mosuwe said the department of employment and labour identified 482,000 skills-training opportunities that will be made available to the youth.

The opportunities were also open for those older than 35.

The department has provided R8.4bn to implement the programme. Nationally, the expenditure on labour activation initiatives stands at R23.7bn.

However, this sharply contrasts what the Quarterly Labour Force Survey (QLFS) revealed on Tuesday.

According to the Quarterly Labour Force Survey (QLFS) released ton Tuesday for the third quarter of 2024, there are currently 2 593 000 unemployed residents in Gauteng, while there are 572 000 discouraged job seekers in the province.

DA Gauteng Shadow MEC for Economic Development Mike Moriarty said Lesufi’s flagship employment programme Nasi Ispani is not making a dent in the current unemployment rate and, in some cases, only offers a short reprieve from unemployment.

“The report shows that 66000 jobs were lost in the quarter. More needs to be done to boost investor confidence to grow the economy.

“This can only be done if the Gauteng Provincial Government under Lesufi’s leadership takes heed of those matters potential investors complain about, such as crime and unreliable infrastructure. To resolve crime, he must pull in the national government to radically institute proper law and order. To improve infrastructure, he must improve government performance in the province.”

According to Moriarty, Lesufi can start by clamping down on corruption by ensuring that when forensic investigations are undertaken, the findings are made public, and the recommendations are implemented.

“Furthermore, adequate protection must be given to whistleblowers who come forward with potential cases of corruption in government departments.”

He added that the provincial government should consider using grant funding to host investment summits targeted at the motor industry, tourism sector and business process outsourcing.

“There is also great appetite for investment in the property sector. Government should engage with the property sector on issues they are facing, which, if addressed, will unlock investment. This will greatly stimulate the construction sector that has suffered badly over the last two decades.”

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