UIF praised for creating jobs in tough economic climate

The Department of Employment and Labour has showered the Unemployment Insurance Fund (UIF) with reward for being on the forefront of making jobs.

In an announcement on Thursday, the division mentioned in March 2017, the UIF and the Industrial Development Corporation (IDC) signed the ability and subscription settlement to convey into impact a considerable funding of R5-billion.

The IDC has permitted 41 qualifying transactions totaling R2.3-billion, of which R130-million was for corporations in misery and regarding job preservation.

The division shared: “So far, the funding has created and saved 8 007 [jobs] by 31 December 2021.

“Although this may seem like a drop in the ocean considering the unemployment rate increase of 7.6% in the third quarter of 2021, what is important to note is that these jobs were created in the tough economic environment where the Covid-19 pandemic wreaked havoc on the economy.”

The division added that it had managed to safe jobs and relieve over 5-million workers by means of the Covid-19 TERS Relief Scheme, mentioning that this may not have been potential with out the assist from the Public Investment Corporation.

“Drawing cash from these investments to fund Covid-19 TERS has come at a cost as our investment declined by 24% from R151-billion to R115-billion by end of March 2021.”

The division additional reiterated that the fund was in a superb monetary situation, saying its belongings had elevated by R9-billion by December 31 2021, which enabled the fund to cowl all claims and administrative prices.

According to the division, the fund put aside R5.8-billion to pay for reassessment of the fund profit claims filed between January 19 2017 to December 31 2018.

It mentioned: “This step is taken as a result of the fund delayed implementing the 2016 Amendment Act because of operational challenges, which resulted in brief funds of many beneficiaries who submitted claims throughout this era.

“The assist for small and medium enterprises may be very important as it’s the place most jobs are created. It is gratifying to notice that 1 171 jobs had been created from transactions concluded with small and medium enterprises.

“Companies with women ownership make up eight transactions that created and saved 835 jobs and 713 jobs, respectively.”

The division additionally mentioned it recognises the basic transformation of the economic system to the success of the nation.

In addition, it confirmed that job creation, expertise growth, and supporting entrepreneurship for the unemployed youth has acquired an important increase when Thulas Nxesi, the Minister of Labour Department, launched an employment initiative on the University of KwaZulu-Natal, value R551-million.

The division mentioned: “Addressing the launch, Nxesi mentioned all efforts to create employment in South Africa must be strongly welcomed contemplating the excessive ranges of unemployment within the nation.

“Therefore, all UIF employment projects must be linked to employment creation because we do not want learners to idle at home upon completion of the employment initiatives.”

Furthermore, it mentioned over 14 000 beneficiaries have been employed by the division of training in KwaZulu-Natal. “The fund will continue all efforts within available resources to save and create jobs.”

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Nompilo Zulu

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