Minister in the Presidency Khumbudzo Ntshavheni has reiterated the government’s dedication to its top priority of fostering an inclusive economy that creates jobs.
Speaking during a Post Cabinet briefing on Thursday, Minister Ntshavheni said the steady growth seen in manufacturing is a confidence booster on work to build a production economy.
This follows the rise in the official unemployment rate to 33.5% in the second quarter of 2024 which is an increase of 0.6 % points from the 32.9% recorded in the first quarter.
Employment decreased by 92 000 to 16.7 million in the second quarter of 2024. The number of unemployed persons increased by 158 000 to 8.4 million during the same quarter.
The Minister highlighted that an analysis of employment by industry reveals a decrease in the number of employed individuals within five of the ten industries between quarter one of 2024 and quarter two of 2024.
Employment decreases were mainly in the Trade (110 000), Agriculture (45 000), and Private households (18 000)
industries.
However, the largest increases in employment were recorded 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. Government remains focused on its apex priority of building an inclusive economy that creates jobs,’ Ntshavheni said.
Inflation
Meanwhile, Cabinet has noted the annual consumer price inflation (CPI) which has dropped to 4.6% in July from 5.1% in June 2024. The CPI increased by 0,4% month-on-month in July 2024.
The main contributors to the 4.6% annual inflation rate were:
Housing and duties (increased by 5.3% year-on-year and contributed 1.3 percentage points)
Miscellaneous goods and services (increased by 7.0% year-on- year and contributed 1.0 percentage point),
Food and non-alcoholic beverages (increased by 4.5% year-on-year and contributed 0.8% of a percentage point), and
Transport (increased by 4.2% year-on-year and contributed 0.6 of a percenta
ge point).
In July 2024, the annual inflation rate of goods was 4.6%, down from 5.5% in June 2024, and Services was 4.7% up from 4.6 in June 2024.
School nutrition programme
Cabinet has further noted the proposed modernisation strategy of the National School Nutrition Programme.
Minister Ntshavheni said Cabinet supports the work underway to ensure proper due diligence on the proposed approach to safeguard the interests of the 9.7 million learners who are daily beneficiaries of scheme.
Recently the Department of Basic Education (DBE) has moved to set the record straight following recent allegations regarding the National School Nutrition Programme (NSNP).
In a statement, Director-General Mathanzima Mweli, explained that the delay in the department’s response was due to discussions between himself and DBE Minister Siviwe Gwarube.
Mweli refuted claims made in the Sunday Times article of 18 August 2024, titled, “Gwarube halts R10bn school food tender”, stating that the article contained ‘numerous inaccurac
ies, fabrications, and falsehoods’.
He emphasised that the DBE did not publish the NSNP tender “surreptitiously” or during a period when the department lacked a Minister. The tender was published on 22 July 2024 after the new administration had taken office.
READ | Basic Education sets record straight on school feeding
Source: South African Government News Agency