Concerns over rising unemployment rate

Employment and Labour Minister, Thulas Nxesi has expressed concern over the increase in youth unemployment which has overshadowed employment gains in some industries.

Nxesi said while the finance, community, utilities, mining and manufacturing sectors have shown small gains, the overall picture is still a cause for concern with a large decrease in employment recorded between quarter four of 2020 and quarter one of 2021.

Industries that were classified as non-essential during the Covid-19 lockdown – such as construction and trade – recorded 87 000 and 84 000 job losses respectively. Private households had shown an employment decrease by 70 000 over the same period.

‘One of the most concerning areas was in the youth category, which remains the most vulnerable in South Africa’s labour market.

‘For instance, 32.4% of the 10.2 million youths (15-24 years) reported not to be in employment, education or training (NEET) in quarter one of 2021.

‘It constituted 29.6% of NEET in December 2020. ‘This being Youth Month, a call is upon us to put in place extensive plans to help the youth out of this quagmire.

‘Through our labour activation programme funded by the Unemployment Insurance Fund (UIF), we are seeing a lot of young people take up entrepreneurial work and thriving.

‘This is where employment happens and as the department, we are supporting these enterprises,’ said Nxesi.