Addressing the opening session of Parliament, Mbeki reported that over the past three years, the economy had created some one-and-a-half million jobs.
“It is encouraging that in the year March 2005 to March 2006 alone, 300 000 of the jobs created were in the formal sector outside of agriculture, representing a growth rate of about 4%,” he said.
A small number of these were permanent job opportunities created through the expanded public works programme.
The President pointed out, however, that “there is also no question that we can do much better to create self-employment through small and microenterprises.” He also added that a significant portion of the unemployed were youth and that government could do more through interventions, such as the National Youth Service and the development of young entrepreneurs.
Having surpassed the 10 000 target, government would increase the number of young people engaged in the National Youth Service by at least 20 000 through 18 government departments, which had already developed plans to enrol 30 000 young volunteers in community development initiatives, and employ 5 000 young people as part of the Expanded Public Works Programme in the maintenance of government buildings, Mbeki said.
Government would intensify efforts to integrate youth development into the mainstream of government work, including a youth cooperatives programme, and the ongoing efforts to link unemployed graduates with employment opportunities.
Meanwhile, government was also looking to fill the vacancies for senior management and professionals at municipalities across the country, especially as 27% of municipalities did not have municipal managers.
Aside from hands-on assistance to municipalities, government promised to deploy skilled personnel including professional volunteers from the public to strengthen Ward committees and for its Accelerated and Shared Growth in South Africa programme to “absorb the large pools of semi-skilled workers”.
Mbeki announced that starting this year, resources would be allocated for financial assistance to trainees.
“We do hope that our efforts will help send the message, especially to our young people, that artisan skills are as critical for economic growth as other levels of qualification.” Mbeki also announced that Telkom, which was applying for a special low rate for international bandwidth to ten development call centres, would each employ 1000 persons, as part of the effort to expand the business process outsourcing sector. These centres will be established in areas identified by government
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