The Presidential Employment Stimulus: A Catalyst for Economic Recovery and Social Change

In October 2020, the South African government launched the Presidential Employment Stimulus (PES) as part of the Economic Reconstruction and Recovery Plan in response to the devastating economic impact of the Covid-19 pandemic. The PES aims to create jobs and support livelihoods, providing meaningful work while the labor market recovers and creating new opportunities for change that will extend beyond the pandemic. This blog post will explore the impact of the PES, its achievements, and its role in building a society that works.

The Milestone: Over a Million Participants

In December 2022, just over two years after its launch, the PES reached a significant milestone by providing job opportunities and livelihood support to over a million South Africans. This achievement not only improved the lives of individuals but also had a positive impact on communities across the country. It showcased the power of collaboration between the government, private sector, and community-based organizations in creating opportunities and strengthening the economy.

Key Objectives and Contributions

The PES operates as part of an integrated suite of programs, coordinated by the Project Management Office in the Presidency, to drive structural reforms and enable employment creation. Its main objectives include:

1. Creating Jobs: The PES created over 795,000 new jobs, vital for South Africa's economic growth trajectory. These employment opportunities not only support the immediate needs of participants but also enhance their work-readiness, making them more productive contributors to the economy.
2. Supporting Livelihoods: The program supported the livelihoods of more than 249,000 people, helping them sustain themselves and their families during challenging times.
3. Retaining Jobs: Approximately 40,500 jobs were retained through the PES, preventing further economic strain and supporting businesses during strict lockdown periods.
4. Boosting the Informal Sector: By providing incomes to participants, the PES injected economic vitality into local economies, particularly benefiting small enterprises and the informal sector. This approach ensured that money circulated locally, leading to a positive "trickle-up" effect, benefiting society as a whole.
5. Fostering Social Change: The PES contributed to social change by addressing various issues, such as strengthening education, upgrading informal settlements, supporting victims of gender-based violence, and investing in environmental initiatives.

Continuing the Path to Recovery

Despite achieving remarkable results, the crisis of unemployment is far from over, and the PES remains a crucial tool in South Africa's economic recovery strategy. The program will continue beyond its initial phases, with funding confirmed until March 2024. This extended planning horizon allows for more opportunities to achieve quality outcomes and further drive economic growth.

The Presidential Employment Stimulus has proven to be a transformative force in South Africa, creating opportunities and supporting livelihoods during challenging times. Its collaborative approach, involving multiple stakeholders, has demonstrated the power of working together to build a society that works. By continuing to invest in job creation and economic recovery, the PES will play a vital role in shaping a brighter future for the nation.