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Phase 2 of Presidential Employment Stimulus Underway

October 18, 2021

The Presidency

Phase 2 of the Presidential Employment Stimulus (PES) is underway.

In a statement, the minister in the presidency, Mondli Gungubele, confirmed that national treasury has allocated R11 billion to Phase 2.

The minister added that this will support the continuation of some programmes from Phase 1 in addition to a range of new programmes.

“The recruitment of 287,000 young people as school assistants is already underway, and participants will be placed in November”, he said.

Included in Phase 2 is the setting up of a new Social Employment Fund; support for the Presidential Youth Employment Intervention; the revitalization of the National Youth Service and a new model of skills training for unemployed youth linked to employment.

Phase 1 of the PES was launched by president Ramaphosa in October 2020 in response to the impact of the Covid-19 pandemic on employment and serves as a crucial pillar of the Economic Reconstruction and Recovery Plan.

According to the minister, PES is designed 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”.

The employment and labour minister, Thulas Nxesi, and the public works and infrastructure minister, Patricia de Lille, also provided updates on their respective department’s contribution to Phase 2.

According to Nxesi, Phase 2 will support demand-led training as a new approach to skills development that links training for young people directly to jobs that are available and the recruitment of 35,000 young people as part of a revitalised National Youth Service to be expanded further in future.

De Lille pointed out that, in the current financial year, the public works and infrastructure department has recruited 1 296 graduates comprising 737 females and 559 males and 98% youth in all nine provinces.

“These graduates have been employed in DPWI’s various regional offices to work on the rural bridges programme, facilities management, real estate branch and administrative work”, she said.