A new initiative has been launched to tackle unemployment, Jobs Boost. The R300 million outcomes fund that has been designed and launched by research-led consulting house Krutham.
The latest Statstics SA Quarterly Labour Force Survey, showed that nearly six million young people are unemployed, representing 43.37% of young people in the labour force and one of the highest rates in the world.
The funding covers the first pilot phase and is expected to scale thereafter. The programme, the largest of its kind globally, will work with implementing partners to train unemployed, previously excluded youth and secure sustainable, quality jobs for them.
Part of the Presidential Youth Employment Intervention, the Jobs Boost Outcomes Fund is distinct in that it introduces an outcomes-based pay-for-performance model that ensures funds are allocated only upon reaching defined milestones. The National Skills Fund, part of the Department of Higher Education and Training, is the sole outcomes funder for the pilot phase.
“The Jobs Boost Outcomes Fund shifts the risk of creating jobs from the public sector to the private sector. The model incentivises our partners to work with employers to ensure that they develop young people who are able to thrive in the workplace,” said Dr Stuart Theobald, the founder and executive chairperson at Krutham.
“Instead of spending on skills development that may or may not lead to a job, the spending is focused on the job itself.”
The pilot phase sets a precedent in government grant-making for skills development and is poised to impact the youth employment landscape significantly.
A non-profit company, Employment Outcomes NPC, has been established by Krutham, as the fund manager.
The programme is open to various organisations, including NGOs and training companies, that can effectively implement strategies to place eligible youth in quality jobs. The jobs are defined by their full-time status, contracts for a minimum of 12 months, compliance with employment laws and remuneration at or above the minimum wage.
Candidates must be 18 to 34, must have been attended quintile 1, 2, or 3 public school or been a beneficiary of the Child Support Grant, with education no higher than matric.
From November 20, prospective implementation partners are invited to submit expressions of interest through the Jobs Boost website (jobsboost.org.za), followed by detailed proposals if shortlisted.
BUSINESS REPORT