President Cyril Ramaphosa stated in his 2018 State of the Nation Address that job creation, particularly for youth, was at the top of the national priority.
Job-creation plans
Summit on Jobs
On the 4th and 5th of October 2018, South Africa hosted the Jobs Summit at the Gallagher Convention Centre in Johannesburg. The Framework Agreement resulted from the Jobs Summit. The arrangement will allow for the development of an estimated 275,000 jobs per year. The Framework Agreement includes the following commitments:
Economic stimulation, procurement actions, and industrial financing
Providing assistance to small enterprises through supplier development programs in townships and the growth of youth entrepreneurship.
Increasing access to community colleges, technical and vocational training colleges, and universities.
National minimum wage implementation.
Ensure that the employment tax incentive functions properly, and develop a national anti-corruption policy.
Initiatives and agreements resulting from the jobs summit will result in 275,000 new employment per year.
Service for Youth Employment
The Youth Employment Service (YES) (external link) was established in 2018.
It is a business-led partnership with the government and labor to provide one million job possibilities for young people.
Employment Tax Credit
The Employment Tax Incentive (ETI) is a tax credit designed to encourage firms to hire young workers. It was put into action on January 1, 2014.
Funding Scheme for Amavulandlela
The Amavulandlela Funding Scheme (link is external) was created by the Small Enterprise Finance Agency (SEFA) specifically for entrepreneurs with impairments. The scheme is aimed towards small and medium-sized businesses and co-operatives having at least 50+1% ownership by disabled entrepreneurs.
Initiative for Public-Private Growth
The private sector has pledged to investing R840 billion in 43 projects across 19 sectors and creating 155 000 jobs by 2024 through the Public-Private Growth Initiative. In conversations with business, the government has pledged to removing policy barriers and accelerating project delivery.
Public Works Program Expansion
Under the Ministerial Conditions of Employment for the EPWP or learnership employment conditions, the Expanded Public Works Programme (EPWP) projects employ people on a temporary or ongoing basis with the government, contractors, or other non-governmental organizations.
Master Plans for Clothing and Textiles and Poultry
The Clothing and Textiles Master Plan, signed in 2019, intends to create 121 000 new jobs in the retail-clothing-textile-and-footwear sector over the next ten years.
The Poultry Master Plan was established to assist poultry growers and processors while saving and creating 54 000 jobs.
How can the government increase job creation?
Making provisions for education and health care in rural areas can lead to job creation.
What can be done to enhance the labor force in South Africa?
Encourage economic activity in specific locations and industries.
Encourage young people to become entrepreneurs.
Assist small and medium-sized businesses in growing.
Close the employment gap between continents.
Customize training programs based on demand.
