Jobs
UNSPLASH

Minister Khumbudzo Ntshavheni double-downed the government's focus on building an inclusive economy that creates jobs after official unemployment rate rose to 33.5% in the second quarter of 2024, up from 32.9% in the first quarter.

After the cabinet briefing on Thursday, Ntshavheni spoke about the steady growth in manufacturing is encouraging for developing a production-based economy, SA News reported.

Employment fell by 92,000 to 16.7 million, while the number of unemployed people increased by 158,000 to 8.4 million in the same period.

The minister noted that an analysis of employment by industry shows a decline in the number of employed people in five out of ten industries between the first and second quarters of 2024.

The biggest job losses were in the Trade sector (110,000), Agriculture (45,000), and Private Households (18,000). However, the largest job gains were seen in Manufacturing (49,000) and Community and Social Services (36,000).

"The steady growth in the manufacturing [sector] is a confidence booster on work to build a production economy. The government remains focused on its apex priority of building an inclusive economy that creates jobs," Ntshavheni said.

Cabinet observed that the annual consumer price inflation (CPI) dropped to 4.6% in July from 5.1% in June 2024. The CPI increased by 0.4% month-on-month in July.

The main factors contributing to the 4.6% annual inflation rate were:

  • Housing and duties, which rose by 5.3% year-on-year and added 1.3 percentage points
  • Miscellaneous goods and services, which increased by 7.0% year-on-year and added 1.0 percentage point
  • Food and non-alcoholic beverages, which went up by 4.5% year-on-year and added 0.8 percentage points
  • Transport, which saw a 4.2% increase year-on-year and contributed 0.6 percentage points
  • In July 2024, the inflation rate for goods was 4.6%, down from 5.5% in June, while the inflation rate for services was 4.7%, up from 4.6% in June.

The cabinet also pointed out the proposed modernization strategy for the National School Nutrition Program (NSNP), stressing the ongoing efforts to ensure proper due diligence on this proposed plan to protect the interests of the 9.7 million students who benefit from the program daily.

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