Programme Director: Ms Riefda Ajam- Employment Services Board
All Senior Governmental Officials from DEL led by DDG-Public Employment Services : Mr Sam Morotoba
Senior Governmental Officials from the Presidency Members of the Employment Services Board University of Cape Town: Prof Daniels
Representatives from ILO led by Mr Dingilizwe Tshabalala Social Partners as follows:
Organised Labour: Mr Nhlapo Organised Business: Ms Jack Community Organisations: Mr Nzimande
All delegates present and those connecting online Distinguished guests, good morning
I would like to first start by thanking you for inviting me to this important National Dialogue on the development of a Framework for Public Employment Programmes.
Acknowledging the Past
The Employment Services Act of 2014 gives us the mandate to establish, regulate, and coordinate public employment programmes. It empowers us to create work schemes for youth and other vulnerable job seekers, ensuring fair conditions, clear durations, and fair remuneration.
Since the democratic transition in 1994, the Government of South Africa invested on several employment creation schemes including the Community Works Program, the Expanded Public Works Program etc., creating millions of temporary employment opportunities for the most vulnerable people. However, these were not supplemented by adequate growth in employment in the mainstream economy, which remain depressed and jobless. Moreover, there was a significant challenge in the planning, implementation as well as the governance of public employment programs which limited their effectiveness in terms of delivery of more and better jobs. This was affirmed by recent studies carried out by the Human Sciences Research Council (HSRC) and Nelson Mandela University.
Our Challenge
Unemployment stands at 32.9%—a sobering figure. This is not just an economic statistic; it is a human reality.
Structural unemployment, slow growth, global disruptions, and inequality compound the challenge. Without decisive action, we risk further social instability.
The growth of the working age population is much higher than that of the employed population. While both measures fare much lower than the growth rate of the unemployed and discouraged populations. Put simply, South Africa's growth in its workforce outstrips the growth in the number of jobs its labour market can create, with a steady increase in the number of unemployed.
This is attributed mainly to the low growth rate of the economy including its structural nature. With the growing levels of structural unemployment in South Africa, along with our low economic growth and consequent inability to generate enough jobs, and lack of inclusive growth, the current unemployment crisis remains a major elusive challenge. This situation is further exacerbated by a myriad of factors such as the changing nature of work, technological changes, sectoral shifts in employment, as well as the devastating impacts of the global COVID-19 pandemic. Unless properly addressed, increasing economic, social and environmental inequality – coupled with ever bleaker employment prospects – will continue to be a threat to social stability.
Our legal mandate
The design and implementation of public employment programmes by the Department of Employment and Labour is provided for in section 6 (1) of the Employment Services Act No. 4 of 2014, which states "the Minister may, after consulting the Board, establish work schemes for the purpose of enabling youth and other vulnerable work seekers to enter employment, remain in employment or be placed in opportunities for self- employment". Furthermore, the Department is mandated to regulate and coordinate all Public Employment Programmes in terms of section 6 (2) and (3) of the Employment Services Act No. 4 of 2014 which state as follows respectively:
(a) measures that may be provided for in terms of a scheme contemplated in subsection (1); and
(b) the period for which a youth or any other vulnerable work seeker may be employed in terms of such scheme and may determine the remuneration of employees or other payments for the purposes of subsection
Insights from Research
To understand challenges in the current Public Employment Programs since 1994, the Employment Services Board commissioned two studies. The Human Sciences Research Council recommends amongst others that we target interventions more effectively through detailed youth profiling and by encouraging employers to hire more young people. The Nelson Mandela University also amongst others reminded us of the need for a stronger reporting mechanism and introducing a competitive wage to attract and retain workers.
A possible direction in improving employment opportunities
Let me thank the Employment Services Board and the Branch PES for taking this initiative to approach the ILO, to support this project through the appointment of the Southern Africa Labour and Development Research Unit to develop a Draft National Public Employment Programmes Framework, which is meant to guide all government departments in designing and implementing programmes that create jobs, retain jobs, support small businesses, and promote fair working conditions, while not excluding skills development, job placement, and transition to formal employment.
The Role of a coordinated Public Employment Services
Markets have no inherent tendency to balance the demand and supply of labour, and even dynamic, growing markets can co- exist with levels of unemployment that are damaging to society.
This being the case, it makes no sense for employment policy to rely on markets alone to deliver full employment - regardless of how little or how much intervention in markets is part of the equation.
If the purpose is to make real headway in matching the demand and supply of labour, then in addition to market-based approaches, the policy process has to address the need for complementary, non-market instruments to achieve what markets have no inherent inclination to do. Employment policy needs to hedge its bets: optimising conditions for employment intensive growth in the private sector – at the same time as using public employment as a complementary, counter-cyclical instrument, able to expand and contract in response to economic conditions.
Philip (2013) further argues that Public employment – including the concept of an employment guarantee – provides a complementary instrument that can limit the damage to society from unemployment; yet it is rarely positioned as a part of employment policy; or as a counter-cyclical instrument able to assist in managing the vagaries of employment trends. Instead, the use of public employment is often seen as a temporary, short- term, last resort to be used only in the context of dire crisis. The growth case for public employment programmes goes further than just the social stability argument though.
Our Commitment as government
We must design PEPs with clear objectives, appropriate targeting, and coordination across all levels of government. This dialogue is our opportunity to share ideas, align our strategies, and ensure that every public employment programme in South Africa delivers meaningful, sustainable benefits for our people.
Let us work together to turn the tide against unemployment—by creating jobs, protecting incomes, and building a future where every South African can contribute to and benefit from our nation's growth.
I Thank You
© 2019 - The South African Department of Employment & Labour
