This, after the province recorded an almost 50% unemployment rate for the second quarter of 2019.

According to Statistics South Africa’s second quarterly labour force survey released on Tuesday, the Eastern Cape recorded the highest unemployment rate at 35.4%, while the North West recorded the highest expanded unemployment at 46.6 %. This number includes those who have long been seeking employment and has given up.

The department’s Frank Tlhomelang, responsible for Integrated Economic Development Services, told OFM News that “unemployment and a lack of jobs has become an elephant in the room” and is working on various initiatives to address this. He says this includes the Growth and Employment Summit that will take place by the end of August.

Tlhomelang adds that they will also be intensifying their support to Entrepreneurs and SMMEs in the province.

He acknowledges that a number of small enterprises in the province often struggle with operational costs, access to funds and skills, leading to their failure soon after their establishment and that the department currently has programmes that help with mentorship and training for entrepreneurs, which they will be enhancing to help small business owners to be in a position to run their businesses successfully.

“We will also provide more information sessions so that they are able to comply with requirements so that their businesses are not closed if they are not making annual returns.”

He adds that they will be engaging more young people during the summit and encourage them to tap into the manufacturing sector.

According to Stats SA, significant job cuts in the mining and construction industries have resulted in the highest quarterly increase in unemployed persons in the country since 2013.

The province, commonly known as the Platinum Province, last year made national headlines over violent service delivery protests and calls for former premier Supra Mahumapelo’s resignation, leading president Cyril Ramaphosa to place it under administration. It has once again come under the spotlight following SSA’s announcement that the country’s unemployment rate had risen to 29 % in the second quarter of 2019.

This is a 1.4 % increase from 27.6% in the first quarter of 2019, and the worst rate since 2008.

Tlhomelang is, meanwhile, urging the youth to identify gaps in the market and develop a business proposal which the department can assist with and help young people establish and formalise their businesses.

OFM News