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TRANSCRIPT
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JOB OPPORTUNITIESIN THE SOUTH AFRICAN LABOUR MARKET AND UNEMPLOYMENT
“Turn your obstacles into opportunities and your problems
into possibilities.” Roy T. Bennett, The Light in the Heart
2016 - 2017
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“When things do not go your way, remember that every challenge —
every adversity — contains within it the seeds of
opportunity and growth.” Roy T. Bennett
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Contributors Labour Market Information and Statistics Unit
PublisherDepartment of Labour
Chief Directorate of Communication
Private Bag X117
Pretoria
0001
Editing, Layout and Design, photography and distribution Sub-directorate of Media Production, Chief Directorate of Communication,
Department of Labour
PrinterGovernment Printing Works
Websitewww.labour.gov.za
ISBN978-0-621-4593-3
JOB OPPORTUNITIESIN THE SOUTH AFRICAN LABOUR MARKET 2016 – 2017
AND UNEMPLOYMENT
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“...one opportunity leads directly to another, just as risk leads to more risk, life to more life, and death to
more death.” Markus Zusak, The Book Thief
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LIST OF FIGURES IV
LIST OF TABLES IV
LIST OF ACRONYMS AND ABBREVIATIONS V
EXECUTIVE SUMMARY VII
SECTION ONE: INTRODUCTION 1Objective of the report 3
The reasons for moving to online job vacancies 3
SECTION TWO: JOB VACANCY TREND ANALYSIS 52.1. Job vacancies by organising framework of occupation (OFO) 6
2.2. Job vacancies by industry (SIC) 9
SECTION THREE: TRENDS IN THE LABOUR FORCE 133.1. Labour market information based on administrative data source 14
3.1.1. Public Employment Services data 14
3.1.2. Unemployment Insurance Fund data 19
3.2. Labour market information based on survey data 23
SECTION FOUR: POST-SCHOOL EDUCATION AND TRAINING IN SOUTH AFRICA 294.1. Higher education 31
4.2. Technical and Vocational Education and Training (TVET) Colleges 33
4.3. Community Education and Training Colleges (CET) 37
4.4. Artisans 39
SECTION FIVE: CONCLUSION 455.1. Progress made in achieving employment targets 46
TABLE OF CONTENTS
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LIST OF FIGURESFigure 1: Total number of job vacancies advertised, 2016/17 6
Figure 2: Work-seekers registered on Employment Services for South Africa (ESSA), 2016/17 15
Figure 3: Work-seekers registered who were provided with employment counselling on ESSA System, 2016/17 16
Figure 4: Work and learning opportunities registered on ESSA system, 2016/17 17
Figure 5: Work-seekers placed in employment or learning opportunities on ESSA system, 2016/17 18
Figure 6: Ordinary UI claims by age group, 2016/17 20
Figure 7: Educational level of UI claimants, 2016/17 21
Figure 8: Reasons for termination in commercial employment, 2016/17 22
Figure 9: Total number of employed, 2016/17 23
Figure 10: Total number of unemployed people, 2016/17 26
Figure 11: Number of students enrolled in public HEI’s by major field of study, 2011-2015 31
Figure 12: Number of graduates from public HEI’s by major field of study, 2011-2015 32
Figure 13: Number of students enrolled in TVET colleges, 2011-2015 34
Figure 14: Number of students enrolled in TVET colleges by qualifications and province, 2015 35
Figure 15: Number of students enrolled in TVET colleges by qualificatyion category and age group, 2015 36
Figure 16: Number of students enrolled in CET colleges, 2011-2015 37
Figure 17: Number of students in CET colleges by programme, 2012-2015 38
LIST OF TABLES Table 1: Number of vacancies by occupational group by sources of data, 2016/17 7
Table 2: Number of vacancies by occupational group, 2016/17 8
Table 3: Educational requirement by occupational categories, 2016/17 8
Table 4: Job vacancies by industry (SIC), 2016/17 9
Table 5: Number of vacancies by industry and occupation, 2016/17 10
Table 6: Number of vacancies by industry and province, 2016/17 11
Table 7: Number of ordinary UI claims created by province, 2016/17 19
Table 8: Number of UI claimants by previous industry, 2016/17 23
Table 9: Employment by occupation, 2016/17 24
Table 10: Employment by industry, 2016/17 25
Table 11: Educational level of the unempployed, 2016/17 27
Table 12: Unemployed level by age group, 2016/17 27
Table 13: Number of learners entering artisanal learning programmes by organisation, 2012/13 -2015/16 39
Table 14: Top 10 artisan trades of learners entering artisanal learning programmes by SETAs and INDLELA and economic sector, 2015 40
Table 15: Number of artisans certificated by SETAs and INDLELA by economic sector, by economic sector, 2014/15- 2015/16 41
Table 16: Top artisan trade of learners completing artisanal learning programmes by SETAs and INDLELA by economic sector, 2015/16 42
LIST OF FIGURES AND LIST OF TABLES
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LIST OF ACRONYMS AND ABBREVIATIONS
AET Adult Education and Training
CET Community Education and Training Colleges
ESSA Employment Services System for South Africa
EPWP Expanded Public Works Programme
IDC Industrial Development Corporation
NC(V) National Certificate (Vocational)
NDP National Development Plan
NDS National Skills Development Strategy
NGP New Growth Path
OFO Organising Framework of Occupation
PEA Private Employment Agencies
PES Public Employment Services
QLFS Quarterly Labour Force Survey
SET Science, Engineering and Technology
SETA Sector Education and Training Authority
SIC Standard Industrial Classification
TVET Technical and Vocational Education and Training
UIF Unemployment Insurance Funds
LIST OF ACRONYMS AND ABBREVIATIONS
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“The true measure of success is how many times you can bounce back
from failure.” Stephen Richards
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EXECUTIVE SUMMARY
The Department of Labour has continuously produced this report in order to provide a comprehensive overview of the labour market trends,
particularly the labour demand in terms of job opportunities advertised or registered and the labour supply in relation to the skills supply through
school and higher education training in the South African labour market. This analysis is provided within the framework of digital age which brings
also some challenges.
The Department is an essential department of international, national and local labour economies. This is because it generates and keeps records
of the administrative labour market information of all the sectors of the economy. However, the report stresses that official unemployment is still
stagnant during this time of the economic crises, e.g. technical recession since March 2017. Notwithstanding this, employment creation was also
recorded but at a lower level where most of South Africa’s workforce is employed in both resource-dependent sectors like manufacturing and
mining as well as non-resource–dependent sectors like finance and other business services over time.
Addressing the relationship between the economy and employment, especially through coordinated policies and investments, is therefore a pre-
sustainable development and the best way to address the issue of unemployment in South Africa.
KEY HIGHLIGHTS IN THIS REPORT:
y South Africa’s official unemployment rate was 27.7 % in Q1 of 2017 (up by 1.2 percentage point compared to 26,5% of Q4 in 2016 from Q1
of 2017). This is the highest unemployment rate observed since September 2003. Out of the 6 212 unemployed people in March 2017, 4
088 000 (66%) were those who were affected by long-term unemployment (1 year and more) but only 2 126 000 (34%) of whom were
affected by short-term unemployment (less than 1 year). Employment increased by 144 000 from 16 069 000 in Q4 of 2016 to 16 212 000
in Q1 of 2017. The industries that contributed to this increase were the manufacturing (62 000), finance (49 000) and mining (26 000).
Agriculture, trade and services were the only industries that observed employment decreases with -44 000, -15 000 and -2 000 during
the same period
y The Unemployment Insurance (UI) data highlighted that, during the financial year 2016/2017, Gauteng accounted for the highest number
of UI claims received (33.9%), followed by KwaZulu-Natal, Mpumalanga and Free State with (10.3%), (10.2%) and (10.1%) respectively. The
age groups, (25-34 years) and (35-44 years) had accounted for the highest number of UI claims (35% average) across all four quarters.
Those with tertiary education were the lowest age group amongst the UI claimants, accounting for only (3% average on quarterly basis).
When it comes to the reasons for terminations, the end of contract has been the main reason for employment terminations (50.4%).
The number of UI claims rose in only two of the nine economic sectors between Q3 and Q4 of 2016/17. These economic sectors included
agriculture and the private households with 2 531 and 104 000, UI claims respectively over the same period
y Regarding the trends in the number of job vacancies (demand side), there were 66 029 advertised job vacancies captured in the
2016/17 financial year. The quarterly vacancies advertised online have decreased consistently from the July to September and October to
December quarters, rising by almost 56% in the January to March 2017 quarter. The top three occupational categories such as managers,
professionals and technicians recorded the largest number of vacancies where the educational skill’s requirements were for individuals
with degree or diploma as compared to other occupational categories. The industries where these high skills were advertised were in the
finance and community (services) over the same period.
y On the supply side, the high number of graduates in Science, Engineering and Technology (SET) were recorded over time. Those who
entered artisanal learning programmes have shown high enrollment with MERSETA, followed by INDLELA and CHIETA in 205/16. The
number of students enrolled in CET colleges was 283 602 in 2015. Enrolment in these colleges was 3% (8 334) higher compared with 2014
and 4.7% or 14 032 lower compared with 2011
y In conclusion, one could observe that the labour market is urgently in need of graduates to occupy high occupational categories but
there is slow progress in the production of graduates which in turn limits the progress in the absorption of graduates in the labour market.
Thus, the 2016/17 data analysis signals the importance of education in sustaining jobs, particularly among youth.
EXECUTIVE SUMMARY
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“Who you are tomorrow begins with what you do today.”
Tim Fargo
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SECTION 1
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SECTION ONE: INTRODUCTION
INTRODUCTION
The world’s major economies are entering the digital age, hence technical capacity is becoming extremely important, and the needs
for certain skills appears to be critical in order to address the global challenge of unemployment. This digital age has transformed the
composition of the labour market for both the industries and career prospects. There is an alarming need to understand the changing
needs and behaviour of the labour market in order for business enterprises to actively use the emerging technologies and develop
a talent strategy to guard against technological shocks. With the development of digital economy, many emerging markets and job
opportunities came into being, while many of the existing careers are slowly being eliminated. Medium-paid jobs, such as mechanical
operators, assemblers, office clerks and customer service, are gradually disappearing due to mechanization, automation and labour
outsourcing. Occupational polarisation is happening in many parts of the world and involves all industries, especially in manufacturing.
As reported by many researchers, South Africa’s situation of persistent unemployment is amongst other things also associated with skills
mismatch that affects millions of youth (new entrants in the labour market) and threatens the future of the country as we observe it
today. However, the skills challenge goes beyond such rather short-term considerations. Increased low adaptability and mobility on the
labour markets marked by low employment levels and considerable fiscal burdens are other key factors contributing to a dissatisfactory
growth performance of the economy.
Against this background, the aim of achieving higher employment rates has become the core focus of the South African Government
since the implementation of the National Development Plan (NDP) in February 2013. The NDP is centered on three pillars of employability
such as improving education, training and innovation, economic growth and employment creation. Thus the strategic goal is to turn
South Africa into a knowledge based economy capable of producing the Gross Domestic Product (GDP) growth of 2.7 times in real
terms and 24 million jobs by 2030. In this spirit, education policy can support employment policy targets by paying close attention to skill
mismatches. The strategies to integrate education, research and innovation can foster skills for innovation.
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OBJECTIVE OF THE REPORT
This report aims to inform the policy makers in the Department of Labour and all other stakeholders responsible for employment creation
about the South African labour market activities that took place during financial year 2016/17. The components that form the basis of
this report present the results of job opportunities advertised during the financial year 2016/17 disaggregated in terms of number of
vacancies by occupational group, education (skills required), industry using the Standard Industrial Classification (SIC) and provinces.
This is covered in Section Two of the report.
On the supply-side, skills supplied by unemployed individuals were also analysed using the Unemployment Insurance Funds (UIF) data,
e.g., the number of ordinary unemployment claims created by province, age group, educational level, and the reasons for termination in
commercial employment. The analysis of work-seekers registered on Employment Services System for South Africa (ESSA), work-seekers
placed or referred in registered employment opportunities, individual immigrants work permit’s applications and Private Employment
Agencies (PEA) registered on ESSA were also analysed. This analysis was presented in Section Three of the report. To some extent the
report also includes external data such as the Quarterly Labour Force Survey (QLFS).
In Section Four, the data on post-school education and training in South Africa was examined as part of the supply of skills to correlate
with the skills needed by the economy during the period under review.
THE REASONS FOR MOVING TO ONLINE JOB VACANCIES
Collection of job vacancy information from newspaper advertisements dates back in 2 000. This started as a monthly count of
newspaper advertisements. In 2003, the weekly count of vacancy data was introduced and was combined with the collection of job
vacancy advertisements from all major provincial newspapers. The job vacancy data addressed the growing demand regarding limited
labour market information. However, the challenge remains with vacancy data coverage.
There were several contributing factors to the termination of collecting vacancy data advertised in newspapers. Firstly, the collection
and processing of the data was a costly manual process. Secondly, over the years there was a significant growth in the number of
jobs advertised online. This shift to online advertising meant a newspaper based series no longer provided an accurate count of job
vacancies advertised. The newspaper advertised jobs steadily decreased while at the same time online job advertisements increased
continually. The shift from newspapers print to online vacancy advertising makes historical newspaper vacancy series redundant. The
detailed occupational breakdown is required to make the data useful to policy makers.
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“It still holds true that man is most uniquely human when he turns obstacles into opportunities.”
Eric Hoffer
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SECTION 2
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SECTION TWO: JOB VACANCY TREND ANALYSIS
Job vacancies indicate that employers are willing to commit resources to advertise, interview and pay ongoing wages or salaries to
potential employees. Vacancy data also provides information about economic changes resulting in job openings for people to produce
goods and services. Furthermore, the matching between vacancies and the unemployed skills can reveal important information about
how the labour market is adjusting towards the “full employment”.
The relationship between vacancies and unemployment, e.g., skills demanded and offered in the overall economy can illustrate that a
low vacancy rate coincides with high unemployment and high vacancy rates coincide with low unemployment. At the current situation
in South Africa, the official unemployment rate is at 27.7% and the vacancies captured by the Department of Labour are very low to
be able to assist in the absorption of the high number of the unemployed. It is for this reason that the NDP aim to invest in job creation
in order to increase the labour force participation rate from 54% to 65% by 2030. In other words, the success of the NDP will depend
on the success of skill building policies (education policies) that provides an adequately qualified labour force. On the other hand,
innovation might also change the pathways and pace of technological progress, which impacts on a changing pattern of labour
demand. Thus, there is a need for education, training and employment policies to interact in order to achieve the goals of the NDP. The
emphasis should be on innovation, education and training as vehicles to job creation. The role of adequate supply of skilled labour as
determinants of innovation and employment remains critical in the South African labour market.
2.1. JOB VACANCIES BY ORGANISING FRAMEWORK OF OCCUPATION (OFO)
Figure 1: Total number of job vacancies advertised, 2016/17
0
5000
10000
15000
20000
Apr - June 2016 Jul - Sep 2016 Oct -Dec 2016 Jan - Mar 2017
Pnet
DPSA and Parastatals
Apr - June 2016 Jul - Sep 2016 Oct -Dec 2016 Jan - Mar 2017
Pnet 10 363 9 796 8 098 18 179
DPSA and Parastatals
3 724 7 162 6 110 2 597
Source: Department of Labour, Job Opportunities Index database, 2016/17.
SECTION TWO: JOB VACANCY
TRENDS ANALYSIS
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Advertised job vacancies show a strong correlation with other indicators of the economy. They are a “good” representation of how well
the labour market and economy is functioning and what period of the business cycle the country is in. Job vacancies can also provide
a measure of surplus or unmet labour demand. Contrary to this, the skills offered by the number of unemployed people provide an
equivalent measure of surplus labour supply.
Figure 1 shows that quarterly vacancies advertised online (Pnet) have decreased consistently from the July to September and October
to December 2016 quarters, rising by almost 56% in the January to March 2017 quarter. Job vacancies collected from the DPSA data
including vacancies advertised by parastatals have increased by 48% in July to September quarter before continually decreasing from
the October to December and January to March quarters.
Overall, 66 029 job vacancies were recorded in the Department in the financial year 2016/17. This constitutes the basis of the analysis
in this report.
Table 1: Number of vacancies by occupational group by sources of data, 2016/17
Occupation Pnet database (on line)
DPSA and Newspapers
Managers 9 366 4 634
Professionals 16 858 5 740
Technicians and Associate Professionals 8 716 3 201
Clerical Support Workers 6 942 2 796
Services and Sales Workers 2 555 1 201
Skilled Agricultural 1 243 751
Plant and Machine Operators 446 435
Elementary workers 310 835
Total 46 436 19 593
Source: Department of Labour, Job Opportunities Index database, 2016/17
The demand for labour varies between public sector and the private sector. Table 1 shows the demand for labour by government
departments as captured from the DPSA website and the state owned enterprises versus the demand for labour by all employers but
mostly private as captured from the PNET database.
The private sector had a high demand for professionals, followed by the demand for managers and technicians. It is also interesting to
note the high demand for clerical support workers by the private sector while the public sector recorded a high demand for elementary
workers over time.
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Table 2: Number of vacancies by occupational group, 2016/17
Occupation Apr-Jun 2016
% Jul-Sep 2016
% Oct-Dec 2016
% Jan-Mar 2017
%
Managers 4 019 28.5% 3 209 18.9% 2 552 18.0% 4 220 20.3%
Professionals 3 609 25.6% 4 753 28.0% 5 506 38.8% 8 730 42.0%
Technicians and Associate Professionals 2 863 20.3% 3 328 19.6% 2444 11.9% 3 282 15.8%
Clerical Support Workers 2 208 15.7% 3 315 19.5% 1 690 11.9% 2 525 12.2%
Services and Sales Workers 741 5.3% 1 243 7.3% 797 5.6% 975 4.7%
Skilled Agricultural 317 2.3% 575 3.4% 484 3.4% 618 3.0%
Plant and Machine Operators 147 1.0% 279 1.6% 250 1.8% 205 1.0%
Elementary workers 183 1.3% 256 1.5% 485 3.4% 221 1.1%
Total 14 087 100.0% 16 958 100.0% 14 208 100.0% 20 776 100.0%
Source: Department of Labour, Job Opportunities Index database, 2016/17
Table 2 presents the changes in job vacancies by occupations for the four quarters of 2016/17 financial year. There was a high number
of vacancies advertised for the top occupational categories that include managers, professionals and technicians in all quarters of
2016/17. It is also encouraging to see the high vacancy number of clerical support workers advertised. This is considered as the entry
level job which absorbs the new entrants into the labour market with limited work experience. On the other hand, plant and machine
operators and elementary workers recorded the lowest number of vacancies over the same period.
Table 3: Educational requirement by occupational categories, 2016/17
Educational requirements
Managers Professionals Technicians Clerks Services Skilled Agricultural
Plant and Machine
Operators
Elementary workers
Total
Degree or Diploma
7 722 11 906 4 799 3 227 690 223 164 266 28 997
Grade 12 1 923 2 198 2 493 3 176 813 208 212 166 11 189
Less than grade 12
16 28 68 96 87 69 153 277 794
Not specified 2 785 5 479 2 724 2 343 1 493 476 229 344 15 873
Post graduate qualification
736 1 226 248 218 97 10 5 4 2 544
Vocational training or certification
818 1 761 1 585 678 576 1 008 127 79 6 632
Total 14 000 22 598 11 917 9 738 3 756 1 994 890 1136 66 029
Source: Department of Labour, Job Opportunities Index database, 2016/17
Table 3 illustrates the educational requirements by occupations as per the job vacancies advertised. It shows that those individuals
with degree or diploma educational achievement could still be attracted for the top occupational categories such as managers,
professionals and technicians. However, clerical works and plant and machine operators could still attract individuals that have
achieved Grade 12 educational achievement. Those with vocational training or certification were in demand for skilled agricultural
and services occupational categories in the 2016/17 financial year. In South Africa, vocational training is regarded as critical because
it equips job seekers with soft skills such as welding, plumbing, craft and related work which are probably short in the labour market.
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2.2. JOB VACANCIES BY INDUSTRY (SIC)
Where these vacancies occurred in terms of industry is critical since it could signals the industries responsible for employment creation.
However, there is no attempt in this section to indicate if the job vacancy advertised was new or replacement. Changes in job vacancies
varied by occupation, industry and by province. These changes show the industries that are creating employment and also job creation
by provincial based industries.
Table 4: Job vacancies by industry (SIC), 2016/17
Industry Apr- Jun 2016 Jul –Sep 2016 Oct –Dec 2016 Jan-Mar 2017
Agriculture 204 297 205 332
Mining 101 601 654 188
Manufacturing 819 759 463 1 154
Utilities 119 144 99 274
Construction 316 262 152 359
Trade 2 662 2 919 1594 3 607
Transport 930 851 528 1 171
Finance 4 101 4 487 4 663 9 648
Community 4 801 6 618 5 847 3875
Private Household 34 20 3 168
Total 14 087 16 958 14 208 20 776
Source: Department of Labour, Job Opportunities Index database, 2016.17
Table 4 shows vacancy change by industry. The number of job vacancies advertised increased in the three main industries notably
in the finance, trade and manufacturing between quarter three and four of 2016/17. Construction and private household industries
were the industries that recorded a reduction in the number of advertised vacancies from July to December 2016. Furthermore, the
community industry has also contracted in the number of vacancies advertised from July 2016 to March 2017.
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Table 5: Number of vacancies by industry and occupation, 2016/17
Industry Clerks Elementary Managers Plant and Machine
Professionals Service and
Sales
Skilled Agricultural
Technicians Grand Total
Agriculture 154 42 300 24 217 46 76 179 1 038
Mining 99 32 157 144 305 11 295 501 1 544
Manufacturing 433 36 733 67 800 98 369 661 3 197
Utilities 93 18 130 8 166 17 43 161 636
Construction 159 12 258 14 274 8 186 178 1 089
Trade 914 46 2 567 55 2 709 1 855 147 2 489 10 782
Transport 766 112 836 236 700 101 172 557 3 480
Financial 4 018 41 4 088 77 9 922 545 397 3 810 22 898
Community 3 043 796 4 884 261 7 432 1 071 306 3 348 21 141
Private Household
59 1 47 4 73 4 3 33 224
Total 9 738 1 136 14 000 890 22 598 3 756 1 994 11 917 66 029
Source: Department of Labour, Job Opportunities Index database, 2016/17
Table 5 shows the labor demand by industry and occupation. Interestingly, the demand for clerks, managers, professionals and
technicians were highly in the finance and community industries over the four quarters of 2016/17. The high demand for IT technicians,
mechanical engineers and civil engineers contributed to the high number of technician and engineering job vacancies in the community,
finance and trade industries. The demand for sales professionals, risk managers, brand managers and accountant contributed to the
high number of professional vacancies advertised in the finance, community, and trade industries. This shows that the economy needs
more graduate engineers for both engineering and non-engineering jobs. Therefore, for the South African government to achieve above
the 5% GDP growth by 2030, the provision of engineering and technician skills should be considered in line with the government’s
economic growth strategy.
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Table 6: Number of vacancies by industry and province, 2016/17
Industry Eastern Cape
Free State
Gauteng KwaZulu-Natal
Limpopo Mpumalanga North West
Northern Cape
Western Cape
Grand Total
Agriculture 64 90 222 98 107 192 83 17 165 1 038
Mining 5 12 199 7 428 131 445 290 27 1 544
Manufacturing 149 70 1 537 582 35 266 60 24 474 3 197
Utilities 21 19 311 75 18 81 15 14 82 636
Construction 65 21 438 74 87 191 105 13 95 1 089
Trade 390 462 4 772 1 208 315 378 261 126 2 870 10 782
Transport 94 180 1 784 670 50 82 56 78 486 3 480
Finance 739 490 13 652 1 888 465 569 282 262 4 552 22 899
Community 2 842 944 10 311 1 263 1 615 458 1 099 532 2 077 21 141
Private Household 2 6 161 23 0 1 0 0 30 223
Total 4 371 2 294 33 387 5 888 3 120 2 349 2 406 1 356 10 858 66 029
Source: Department of Labour, Job Opportunities Index database, 2016/17
Table 6 shows the number of job vacancies advertised by industry and province. Across all provinces, the results reflect the same
trends where the finance, community and trade industries have relatively recorded high number of vacancies as compared to other
industries in all quarters in 2016/17. The number of job vacancies advertised in the transport and manufacturing industries were also
predominant in Gauteng. In the Northern Cape, the highest number of vacancies was in the mining industry and lowest was in the
construction industry. The mining industry also had a high number of job vacancies advertised in Limpopo, North West and Northern
Cape. Transport and manufacturing industries had advertised a couple of vacancies in KwaZulu-Natal.
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“Time is limited and some opportunities never repeat themselves.”
Belle de Jour, The Intimate Adventures of a London Call Girl
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SECTION 3
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SECTION THREE: TRENDS IN THE LABOUR FORCE
The trends in the labour force can be analysed using different types of data sources. In this section, survey and administrative data
sources are used to examine the trends in response to the labour demand and supply in the South African labour market within the
financial year 2016/17. Unfortunately, the official unemployment rates in South Africa stood for a long time post-recession 2008/9 at
an average of 25%. Thus, the main concern in South Africa is the persistently high levels of unemployment which eventually result in
widespread deterioration of human capital, discouragement and labour market withdrawal particularly for youth (15-34 years).
If the labour force grows as a result of population growth, it implies more jobs have to be created in order to balance the equation.
More jobs can only be achieved if the economy is “sound” enough in terms of high investment levels and high productivity to create
employment opportunities. On a quarter to quarter analysis, the South African working age population grew by 156 000 or 0.4%
standing at 37 061 000 in Q1 of 2017, yet the unemployment rate remained relatively high at 27.7% in March 2017. This reflects
about 6.2 million individuals who were actively looking for jobs but they could not find any which means that the gap in the South
African labour is still widening.
3.1. LABOUR MARKET INFORMATION BASED ON ADMINISTRATIVE DATA SOURCE
3.1.1. Public Employment Services data
Public employment services (PES) in the Department of Labour is set up to facilitate labour market integration of jobseekers, employers
and employment agencies. PES helps to match labour demand and supply in the labour market through information, placement and
active support services.
Currently, PES is at the forefront of the battle against unemployment and faced with the pressure and expectations increased as
reflected by the rising number of registered jobseekers. PES is bound to stay the test of time in order to adapt to the changing labour market
realities for the foreseeable future and help render organisations affected by labour demand and supply more efficient through greater
rationalisation of activities and services provided.
SECTION THREE: TRENDS IN THE LABOUR FORCE
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Figure 2: Work-seekers registered on Employment Services for South Africa (ESSA), 2016/17
0
10000
20000
30000
40000
50000
NU
MBE
RS
EC FS GP KZN LMP MP NC NW WC
Quarter 1 16 405 8 381 29 052 27 271 11 946 10 911 4 666 9 473 18 943
Quarter 2 18 251 10 869 35 679 27 173 15 333 13 362 4 810 10 111 17 321
Quarter 3 20 907 9 680 34 049 27 462 16 730 11 568 4 710 8 725 20 115
Quarter 4 22 774 13 584 46 895 31 031 20 523 15 211 6 683 12 253 23 336
Source: Department of Labour, ESSA System, 206/17
Figure 2 shows the number of work-seekers registered on ESSA system. Out of 674 537 registered work-seekers in 2016/17, Gauteng
recorded the highest number of work-seekers at 21.6 %, followed by KwaZulu-Natal (16.7%), Western Cape (11.8%) and Eastern Cape
(11.6%). More work-seekers were registered in ESSA in Q3 and Q4 of 2016/7. Nevertheless, the Northern Cape recorded the lowest
increase in work-seekers registered of 1 867 and 1 973, respectively during the same period.
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Figure 3: Work-seekers registered who were provided with employment counseling on ESSA System, 2016/17
0
5000
10000
15000
20000
25000
30000
35000
40000
NU
MBE
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EC FS GP KZN LMP MP NC NW WC
Quarter 1 6 302 4 128 9 254 5 698 6 167 4 533 2 331 5 174 2 700
Quarter 2 13 020 9 345 20 631 11 835 14 780 10 127 4 469 10 410 6 033
Quarter 3 17 874 12 747 28 924 18 845 20 507 14 054 6 326 14 203 8 315
Quarter 4 23 421 16 921 39 511 22 947 27 803 19 989 9 375 19 896 11 400
Source: Department of Labour, ESSA System, 2016/17
The numbers of the registered work-seekers who were provided with employment counseling through PES are shown in Figure 3. Only
71.2% of the total registered work-seekers (674 537) were provided with employment counseling. This represents 479 995 registered
work-seekers in the financial year 2016/17.
The largest increase in registered work-seekers that were provided with employment counseling was again observed in Gauteng (10
587), followed by Limpopo (7 296) and Mpumalanga (5 935), while the Northern Cape and Western Cape recorded increases of 3 049
and 3 085, respectively between Q3 and Q4 of 2016/17.
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Figure 4: Work and learning opportunities registered on ESSA system, 2016/17
0
3000
6000
9000
12000
15000
NU
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EC FS GP KZN LMP MP NC NW WC
Quarter 1 2 284 1 438 4 166 2 057 1 300 765 1 678 878 1 443
Quarter 2 4 507 2 687 7 438 6 478 2 754 1 683 2 421 1 453 5 753
Quarter 3 5 904 4 365 10 554 8 172 3 780 3 239 4 558 1 969 9 666
Quarter 4 9 277 6 718 14 956 11 454 6 382 4 302 5 452 2 944 11 742
Source: Department of Labour, ESSA, System, 2016/17
Figure 4 shows that again the province that accounted for the highest number of work and learning opportunities registered was
Gauteng with 4 166 during Q1 of 2016, 7 438 during Q2 of 2016, 10 554 during Q3 of 2016 and 14 956 during Q4 of 2017. On the other
hand, the province that accounted for the highest number of work and learning opportunities registered was North West with only 878
during Q1 of 2016, 1 453 during Q2 of 2016, 1 969 during Q3 of 2016 and 1 969 during Q4 of 2017.
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Figure 5: Work-seekers placed in employment or learning opportunities through ESSA system, 2016/17
0
500
1000
1500
2000
2500
NU
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EC FS GP KZN LMP MP NC NW WC
Quarter 1 536 267 237 659 305 167 111 41 99
Quarter 2 921 428 867 1 120 696 242 297 24 323
Quarter 3 1 295 509 1341 1 669 1 064 564 483 91 613
Quarter 4 1 792 789 2 350 2 497 2 298 1 098 593 302 784
Source: Department of Labour, ESSA System, 2016/17
Placement of registered work-seekers in employment or learning opportunities through ESSA could illustrate the Department of
Labour’s contribution to employment creation in the South African labour market. According to Figure 5, a total of 27 454 work-seekers
were placed in employment or learning opportunities in the financial year 2016/17. This represents about 4% of the total work-seekers
registered and 16% of the total work and learning opportunities registered over the same period.
Overall, KwaZulu-Natal (21.7%), Gauteng (17.5%), Eastern Cape (16.6%) and Limpopo (15.9%) have placed relatively more work-seekers
in employment or learning opportunities than other provinces. On the other hand, an increase in work-seekers placed in employment
or learning opportunities were mostly recorded in Limpopo (1 234), followed by Gauteng (1 009) then Kwazulu-Natal (828), between
Q3 and Q4 of 2016/17. The provinces that recorded the lowest increase in work-seekers placed in employment or learning opportunities
were Northern Cape, followed by Western Cape and North West with an increase of 171 and 211, respectively during the same period.
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3.1.2. Unemployment Insurance Funds data
Unemployment Insurance Fund (UIF) secure the temporarily unemployed people by providing them with insurance benefits and
contributing to skills development through the Labour Activation Programme and other sources of employment services. UIF refers to
a system in which the Department of Labour is enacted by legislation to set up a fund by the society to provide material assistance to
workers who have temporarily disrupted the source of their livelihood due to unemployment as a result of job losses through business
closures, dismissals, end of contracts, retrenchments, maternity leave, adoption leave and illness leave. The basic living expenses paid
by the unemployment insurance agency to the eligible unemployed persons are a temporary compensation for the loss of wage income
of the unemployed during unemployment. The purpose is to protect the basic living needs of the unemployed.
Table 7: Number of ordinary UI claims created by province, 2016/17
Province Apr-Jun 2016 Jul-Sep 2016 Oct-Dec 2016 Jan-Mar 2017
Eastern Cape 14 324 12 898 17 090 12 705
Western Cape 24 662 26 277 22 792 20 227
Free State 6 642 6493 7380 6 385
Northern Cape 7 042 7 290 4 934 5 183
North West 6 925 5 875 10 104 4 342
Gauteng 46 327 42 279 36 601 35 246
Mpumalanga 12 759 11 515 14 565 12 184
Limpopo 11 670 12 222 15 960 11 879
KwaZulu-Natal 29 574 27 986 23 893 25 766
Total 159 925 152 835 153 319 133 917
Source: Department of Labour, UIF database, 2016/17
Table 7 shows that the Department of Labour received 599 996 UI applications for ordinary unemployment benefits in 2016/17. The
largest contribution was recorded in Gauteng (27%) and the lowest was in the Northern Cape (4.1%). With regard to unemployment
insurance, data from the UIF database show that over Q4 of 2016/17, not only did a larger number of people affected by joblessness
in the provinces with most economic activities but also the provinces with least economic activities like Mpumalanga and the Eastern
Cape.
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Figure 6: Ordinary UI claims by age group, 2016/17
0
5
10
15
20
25
30
35
perc
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15-24 25-34 35-44 45-54 55-65 66+
Apr-Jun 2016 6% 35% 26% 16% 13% 4%
Jul-Sep 2016 16% 23% 28% 17% 13% 3%
Oct-Dec 2016 5% 35% 28% 17% 12% 3%
Jan-Mar 2017 4% 33% 27% 16% 14% 5%
Source: Department of Labour, UIF database, 2016/17
Figure 6 shows, in a comparative perspective, the differences regarding the quantity of UI applications by age groups in the South
African labour market in the financial year 2016/17. The results reveal that age groups of (25-34 years) and (35-44 years) had accounted
for the highest number of UI claims across all four quarters. It is interesting to notice that one out of three amongst the youth (25-34
years) has still applied for UI benefits. This trend has remained stagnant during the period under review. In other words, job losses were
predominantly amongst youth when using the UI applications data as compared to all other age groups.
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Figure 7: Educational level of UI claimants, 2016/17
0
5
10
15
20
25
30
35
40
perc
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Below Grade 8 Grade 8-9 Grade 10-11 Grade 12 Above Grade 12
Apr-Jun 2016 11% 13% 36% 36% 3%
Jul-Sep 2016 11% 15% 38% 33% 3%
Oct-Dec 2016 11% 15% 39% 31% 3%
Jan-Mar 2017 12% 14% 38% 33% 3%
Source: Department of Labour, UIF database, 2016/17
The data in Figure 7 shows that, one of the main reasons of job losses in the South African labour market is the low level of education.
However, a number of research reports have confirmed that there is a direct relationship between education and job sustainability.
Those with tertiary education were the lowest to be affected by job losses, accounting for only 3% on average regarding the quarter
to quarter analysis. Those who were mostly affected by job losses were those at the level of education of Grade 11-12 and Grade 12 with
an average of 33% in all quarter of 2016/17.
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Figure 8: Reasons for termination in commercial employment, 2016/17
0
10000
20000
30000
40000
50000
60000
70000
80000
perc
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Business closed Dismissed End of Contract Retrenched
Apr-Jun 2016 5 705 38 075 70 229 32 626
Jul-Sep 2016 5 269 33 234 61 570 27 112
Oct-Dec 2016 4 268 33 422 70 620 22 910
Jan-Mar 2017 4 090 29 695 57 291 19 461
Source: Department of Labour, UIF database, 2016/17
Figure 8 shows that the end of contract was the main reason for employment termination (50.4%) reported by UI claimants in order
to receive UI benefits. This was followed by dismissals (26.1%), retrenchments (19.8%) and businesses closures (3.2%). However, in the
current economic crisis, e.g., technical recession, retrenchment is fast becoming a daily threat to the South Africa labour market and
thousands of workers are finding themselves on the street without hope of re-employment. There is presently little possibility of those
losing their jobs being able to obtain other jobs. This is demonstrated with high number of discouraged work-seekers in the labour
market.
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Table 8: Number of UI claimants by industry, 2016/17
Industry Apr-Jun 2016 Jul-Sep 2016 Oct-Dec 2016 Jan-Mar 2017Agriculture 15 526 12 466 14 506 17 037
Mining 6 297 5 392 4 031 2 702
Manufacturing 19 001 18 365 17 019 13 841
Construction 15 607 15 157 16 076 12 951
Trade 70 614 68 625 68 147 57 750
Transport 8 027 8 678 8 588 7 472
Finance 11 224 10 748 11 309 9 755
Community 10 541 10 695 11 202 9 864
Private Household 3 088 2 709 2 441 2 545
Total 159 925 152 835 153 319 133 917
Source: Department of Labour, UIF database, 2016/17
Table 8 shows the different levels of UI applications by different industries in the financial year 2016/17. Among the various figures
that can be extracted from the table above, UI claims rose in only two of the nine economic sectors between Q3 and Q4 of 2016/17;
agriculture industry’s UI claims increased by 2 531 while private households UI claims increased by 104. Unemployment Insurance claims
decreases were mostly recorded in the trade (10 397) followed by manufacturing (3 178) and construction (3 125) industries during the
same period.
3.2. Labour market information based on survey data
As discussed above, skills and knowledge are the engines of economic growth and social development of any country. Countries with
higher and better levels of knowledge and skills respond more effectively and promptly to challenges and opportunities of the flexible
labour market1.
Figure 9: Total number of employed, 2016/17
15200
15350
15500
15650
15800
15950
16100
16250
16400
NU
MBE
RS
Apr-Jun 2016 Jul-Sep 2016 Oct-Dec 2016 Jan-Mar 2017
15 545 15 833 16 069 16 212
Source: Statistics South Africa, Quarterly Labour Force Survey, P0211 March 2017
1 Dr. Vijay P. Goel; technical and vocational education and training (tvet) system\ in India for sustainable development; not dated.
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Figure 9 above illustrates the persistent growth in the number of employed people from Q1 to Q4 of 2016/17. It shows that the number
of employed people grew by 144 000 between the Q3 and Q4 of 2016/17. However, behind this rosy picture is the daunting fact that
the quality of jobs remains probably low and the country needs to improve the quality of jobs, in order to sustain economic growth
and stability. Achieving decent work as per the National Development Plan (NDP) framework can contribute to more stable, inclusive
economic growth that could lead to greater poverty reduction.
Table 9: Employment by occupation, 2016/17
Occupation Apr-Jun 2016 Jul –Sep 2016 Oct–Dec 2016 Jan-Mar 2017
(‘000) (‘000) (‘000) (‘000)
1 314 1 352 1 420 1 448
857 835 892 895
1 495 1 465 1 479 1 435
1 621 1 651 1 681 1 751
2 437 2 474 2 484 2 478
66 72 66 69
1 890 1 947 1 977 2 018
1 218 1 312 1 319 1 332
3 634 3 700 3 758 3 778
1 006 1 026 993 1 007
Total 15 545 15 833 16 069 16 212
Source: Statistics South Africa, Quarterly Labour Force Survey, P0211 March 2017
Table 9 displays change in the level of employment by occupation. The constant employment growth from the second quarter to the
first quarter of 2016/17 led to the high recruitment of managers, clerk craft, operators and elementary workers. But employment creation
for other occupations was unstable during the period under review.
Thus, the emphasis has been on improving the secondary, tertiary education and vocational education in order to meet the labour
supply requirements to foster economic growth.
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Table 10: Employment by industry, 2016/17
Occupation Apr-Jun 2016 Jul –Sep 2016 Oct–Dec 2016 Jan-Mar 2017
(‘000) (‘000) (‘000) (‘000)
Agriculture 825 881 919 875
Mining 447 438 421 447
Manufacturing 1 712 1 683 1 727 1 790
Utilities 111 118 131 145
Construction 1 388 1 491 1 483 1 505
Trade 3 136 3 198 3 222 3 207
Transport 862 9 15 961 965
Finance 2 220 2 323 2 329 2 378
Community 3 544 3 499 3 571 3 569
Private Household 1 296 1 281 1 299 1 319
Total 15 545 15 833 16 069 16 212
Source: Statistics South Africa, Quarterly Labour Force Survey, P0211 March 2017
The results in Table 10 above shows that industries that are the main drivers of economic growth such as trade, finance and
manufacturing contributed tremendously in job creation over the financial year 2016/17. The largest employment growth was observed
in the manufacturing (62 000), finance (49 000) and mining (26 000) industries. Mining industry employment grew for the first time in
Q4 of 2016/17 after declining for four successive quarters. While, utilities, transport and finance industries employment grew constantly
from October to March 2017.
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Figure 10: Total number of unemployed people, 2016/17
5300
5425
5550
5675
5800
5925
6050
6175
6300
NU
MBE
RS
Apr-Jun 2016 Jul-Sep 2016 Oct-Dec 2016 Jan-Mar 2017
5 634 5 873 5 781 6 214
Source: Statistics South Africa, Quarterly Labour Force Survey, P0211 March 2017
Figure 10 above shows that the number of unemployed people increased by 433 000 between Q3 and Q4 of 2016/17 leading the
number of unemployed people to more than 6.2 million in March 2017. This increase resulted to the highest unemployment rate of 27.7%
observed since September 2003. This has occurred because the pressure of new work-seekers into the labour market has prevailed over
the rate at which new jobs have been created according to Statistics South Africa.
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Table 11 : Educational level of the unempployed, 2016/17
Highest level of education
Apr-Jun 2016 Jul –Sep 2016 Oct–Dec 2016 Jan-Mar 2017
(‘000) (‘000) (‘000) (‘000)
No Schooling 74 82 7 84
Primary incomplete 352 359 346 346
Primary completed 213 216 215 260
Secondary not completed 2 648 2849 2 785 3 002
Secondary completed 1 871 1 870 1 875 1 933
Tertiary 426 467 451 541
Other 49 31 35 47
Total 5 634 5 873 5 781 6 214
Source: Statistics South Africa, Quarterly Labour Force Survey, P0211 March 2017
Table 11 shows an increase in the number of unemployed who did not complete secondary school by 353 000 between June in 2016
and March of 2017. The 115 000 unemployment growth for people with tertiary education was the second highest growth among the
unemployed over the same period. The results imply that there are more unemployed individuals who are actively searching for jobs
with limited educational achievement. This could support the argument that a large number of youth are probably dropping out of
school in search for jobs.
Table 12: Unemployed level by age group, 2016/17
Years Apr-Jun 2016 Jul –Sep 2016 Oct–Dec 2016 Jan-Mar 2017
(‘000) (‘000) (‘000) (‘000)
15-24 1 428 1 497 1 382 1 559
25-34 2 208 2 319 2 319 2 395
35-44 1 308 1 348 1 360 1 412
45-54 541 568 589 670
55-64 148 141 130 178
Total 5 634 5 873 5 781 6 214
Source: Statistics South Africa, Quarterly Labour Force Survey, P0211 March 2017
As illustrated in Table 12, unemployment mostly affected the youth. The age group of 15-24 years accounted for the highest
unemployment rate at 54.3% followed by age group of 25-34 years with 32.5% in March 2017. It further shows that the unemployment
rate for age group (55-64 years) was the lowest as compared to other age groups. It represented only 10.5% over the same period.
Overall, the results, in particular with the youth unemployed, do not create any hope that can be resolved in the short run. This is critical
and needs to be addressed with the correct policies and programmes in the South African labour market. In light of this, one can still
say that the challenge of matching the labour demand and supply from both data sources remain apparent which explains the gap
that we observe constantly in the labour market.
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“Every challenge, every adversity, contains within it the seeds of
opportunity and growth.”
Roy Bennett
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SECTION 4
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SECTION FOUR: POST-SCHOOL EDUCATION AND TRAINING IN SOUTH AFRICA
Education has been a key factor in South Africa’s rapid economic growth over years. Since post- apartheid, the government-led
economic development plans have been directly reflected in education policy and planning. The National Development Pan (NDP) is
one of the policies in which government has committed that the education, training and innovation system should cater for different
needs and produce highly skilled individuals. It further committed that the graduates of universities and technical and Vocational
Education and Training (TVET) colleges should have the skills and knowledge meeting the present and future need of the economy
and society.
Higher education and training’s share has been consistently above 13%, and increased to a projected 15.6% in 2016/17, with more funds
available for student loans and bursaries. Expenditure on higher education is projected to grow by an average annual rate of 6.5%
from 2014/15 to 2016/17 in line with the policy commitment to increase access to higher education, especially in science, engineering and
technology, which support greater economic competitiveness2.
As education is the means for bringing socio-economic transformation in a society, various measures are being taken to enhance
the access of education to the marginalised sections of the society (school leavers). One such measure is the establishment of the
Community Education and Training Colleges (CET colleges) to train young school leavers and provide them with skills and knowledge
for employment. Training in these colleges is primarily in the mid-level skills required to develop the South African economy, and tends
to concentrate on construction, tourism and hospitality and entrepreneur studies.
Investment in education will also increase the quality and quantity of education and training to ensure that post matric education
produces people who have the skills required by the labour market. It may also entail greater automation and capital investments that
can effectively use this skilled labour.
2 http://www.treasury.gov.za;provincial budgets and expenditure review: 2010/11 – 2016/17
POST-SCHOOL EDUCATION AND TRAINING
IN SOUTH AFRICA
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4.1. HIGHER EDUCATION
Figure 11: Number of students enrolled in public HEI’s by major field of study, 2011-2015
0
50000
100000
150000
200000
250000
300000
NU
MBE
RS
2011 2012 2013 2014 2015
SET 264 447 273 282 283 622 287 221 294 935
Business management 288 487 282 299 279 954 272 409 27 328
Education 164 939 168 608 172 991 166 099 170 550
Other umanities 220 326 229 184 247 131 243 426 245 899
Sources: Statistics on Post-School Education and Training in South Africa (2010, 2011, 2012, 2013, 2014), 2015 HEMIS database, data extracted in October 2016
As part of the supply–side, the number of students enrolled in various institutions and field of studies can be used to examine the
possibility of matching it to the skills required as per the vacancies advertised in the labour market. Figure 11 above shows enrollment
growth in Public Higher Education Institutions (HEI’s) from 2011 to 2015. The enrollment growth has a strong effect on human resource
development in two ways: On the industrial side, rapid industrialisation affected skill development in workplaces in particular; industrial
development requires substantial efforts to upgrade workforce skills and knowledge. On the supply side, the education and training
system is needed to meet the new requirements of the industry. The increased enrollment in Science, Engineering and Technology (SET)
and Business Management studies in the HEI’s improves the quantity and quality of graduates in response to the imbalance between
public training and industrial needs.
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Figure 12: Number of graduates from public HEI’s by major field of study, 2011-2015
0
10000
20000
30000
40000
50000
60000
70000N
UM
BER
S
2011 2012 2013 2014 2015
SET 46 100 48 848 53 176 55 574 58 090
Business management 44 155 56 042 49 051 50 381 53 863
Education 37 879 35 478 38 212 37 076 36 654
Other umanities 32 484 35 618 40 384 42 344 42 917
Sources: Statistics on Post-School Education and Training in South Africa (2010, 2011, 2012, 2013, 2014), 2015 HEMIS database, data extracted in October 2016
Figure 12 above shows that there was consistent growth in the number of graduates in the SET, business management and other
humanities studies from 2011 to 2015. Out of the total number of students that enrolled in SET (294 935) and business management
(273 828), about 20% of students graduated in each field of study. In Education and other humanities field of studies, 20% and 17%
student graduated respectively over the same period. The graph also shows a significant decline in the number graduate students in
education from 2014 to 2015.
In line with the skills required through the number of vacancies analysed in this report, it has become almost a necessity to have a post
matric education in order to enter the professional field. As globalisation and technology continue to re-shape the needs of labour
markets worldwide, the demand for individuals with a broader knowledge base and more specialised skills continues to rise. Unlike old
days, industries today seek skilled and educated workers from the lowest to the highest professional ranks.
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4.2. TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING (TVET) COLLEGES
TVET colleges have become an international educational initiative aimed at improving vocational training programmes around the
world. The UNESCO-UNEVOC organisation defines TVET as the following:
“Technical and vocational education is used as a comprehensive term referring to those aspects of the educational process involving, in addition to general education, the study of technologies and relating to occupations in various sectors of economic and social life3.
South African technical vocational education and training functions within a set of policies that emphasise forging partnership within
a paradigm of a “developmental state” to overcome multi-faceted socio-economic problems afflicting our society4 policies such as
the New Growth Path (NGP) (2011), National Skills Development Strategy (NDS) III (2010) and the National Development Plan (NDP)
(2012) together with the Green Paper for Post-School Education and Training (2012) outline government’s current social and economic
trajectory . The reference is made about the role played by the TVET college sector within the post education and training (PSET)
system towards addressing challenges faced in developmental state. Along the same narrative, the NDP (2012: 24) presents the notion
of a capable state. The policy underscores the need for a strong relationship between colleges and industry for improving the quality
of training in colleges and ensures quick absorption of college graduates into jobs. Through partnerships colleges will also be able to
determine what skills are needed in the labour market5.
In August 2016, the Deputy President Cyril Ramaphosa, briefed the media at Ekurhuleni West TVET College and called on companies
across all sectors of the economy to adopt TVET colleges to help with skills development and job creation in the country. He also
stressed that there is a strong link between the quality of teaching in TVET colleges and the development of skills suitable for the
demands of the job market:”….It is essential therefore that we work together, government, business and other stakeholders to improve
the scale, the quality of the relevance of our TVET colleges system5...”
3 “ http://blog.oxbridgeacademy.co.za/what-is-a-tvet-college4 Human Resource Development Council for South Africa ; FORGING TVET COLLEGE PARTNERSHIPS – IMPLICATIONS FOR THE POST-SCHOOL EDUCATION
AND TRAINING SYSTEM; July 20145 SAnews.gov.za; 13 August 2014.
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Figure 13: Number of students enrolled in TVET colleges, 2011-2015
0
100000
200000
300000
400000
500000
600000
700000
800000
NU
MBE
RS
2011 2012 2013 2014 2015
400 273 657 690 639 618 702 383 737 880
Sources: Statistics on Post-School Education and Training in South Africa (2010, 2011, 2012, 2013, 2014), TVET College Annual Survey 2015, data extracted in November 2016
Policymakers had considered TVET as a way for workers to quickly acquire the skills needed by various industries in the country. The
Higher Education and Training Minister, Blade Nzimande, has also reiterated that the success of the TVET college sector in producing
these skills lies largely in the partnerships they are able to forge with other sectors6.
Figure 13 above shows that, student enrolment in TVET increased by 84.3% from 400 273 to 737 880 over the period 2011 to 2015. The
2015 enrolment was the highest regarding the number of enrollment in TVET as compared to other previous years.
6 www.sanews.gov; 6 November 2014
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Figure 14: Number of students enrolled in TVET colleges by qualifications and province, 2015
0
20000
40000
60000
80000
100000
120000
140000
160000N
UM
BER
S
EC FS GP KZN LMP MP NC NW WC
NC(V) 21 731 6 096 33 989 31 614 26 078 7 339 20 989 2371 15 252
Report 191 N1-N6 53 967 41 002 143 786 85 782 75 121 10 881 49 609 9 625 49 691
Occupational Qualifications 195 1312 868 7 202 3 137 0 720 666 6 433
Report 550/ NSC and Other 1 084 710 9 838 8 251 616 25 493 244 11 163
Sources: Statistics on Post-School Education and Training in South Africa (2010, 2011, 2012, 2013, 2014), TVET College Annual Survey 2015, data extracted in November 2016
Note 1: NC(V) refers to the National Certificate (Vocational). Note 2: Report 191 refers to the NATED programmes, N1 to N6.Note 3: “Occupational Qualifications” refer to qualifications associated with a trade, occupation or profession resulting from work- based learning and consisting of knowledge unit standards, practical unit standards, and work experience unit standards.Note 4: NSC refers to the old National Senior Certificate (which is equivalent to Grade 12).Note 5: “Other” in colleges refers to all other skills development programmes.
As reported by the Department of Education, Figure 14 shows that, the top three provinces which recorded the highest student
enrolments in TVET colleges in 2015. They were Gauteng (188 481), KwaZulu-Natal (132 849) and Limpopo (104 952) while the lowest
enrolments were recorded in the Northern Cape (12 906) and Mpumalanga (18 245).
A vast majority of students (519 464 or 70.4%) were qualified for enrolling in N1-N6 programmes, with Gauteng contributing the most
in the total enrolments for these programmes (143 786 or 27.7%). The second largest qualifications were for NC (V) (165 459 or 22.4%)
and the highest enrolment for these qualifications was also in Gauteng (33 989), followed by KwaZulu-Natal (31 614). With these results,
the South African Government needs to provide adequate human and material resources to TVET colleges to properly train students
in order to achieve the NDP goals.
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Figure 15: Number of students enrolled in TVET colleges by qualification category and age group, 2015
0
50000
100000
150000
200000
250000
300000N
UM
BER
S
15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 >
Report 191 N1-N6 60 010 274 697 95 133 33 376 14 217 9 621
Report 550/ NSC 2 27 54 26 13 16
NC(V) 22 487 88 755 32 349 6 176 1 585 728
Occupational Qualifications 969 5 274 6 522 3 326 1 641 1 616
Other 3 191 10 872 7 232 4 298 2 315 3 197
Sources: Statistics on Post-School Education and Training in South Africa (2010, 2011, 2012, 2013, 2014), TVET College Annual Survey 2015, data extracted in November 2016
Figure 15 shows that almost 90% of student enrolments in TVET colleges were the youth aged 15-34 years. More than half of
enrolments were for students aged 20-24 years (379 625 or 51.4%), followed by those aged 25-29 years (141 290 or 19.1%). Enrolment
declined for the older age groups to the lowest level of 15 178 for students aged 40 years and above. Majority of students enrolled for
Report 191 programmes regardless of the age group7. Expanding and strengthening vocational education is crucial since South Africa
is characterised by high youth unemployment rate. Vocation education should be considered as a powerful tool for improving job
prospects and job quality among youth.
7 Department of Higher Education and Training: Statistics on Post-School Education and Training in South Africa: 2015.
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4.3. COMMUNITY EDUCATION AND TRAINING COLLEGES (CET)
The main purpose of CET colleges is to train young school leavers, providing them with skills and knowledge for employment. Training is
primarily in the mid-level skills required to develop the South African economy, and tends to concentrate on engineering, construction,
tourism and hospitality, general business and management studies8.
Community education’s primary purpose is to educate within and for community. Community education is about encouraging and
engaging people through life into learning that is based on what they are interested in9. These colleges have adapted to the evolving
educational needs of the population during changing economic conditions. They play an important role in higher education and have
therefore become a key resource for economic growth in the communities they serve10.
Industries that previously employed people with high school education increasingly require vocational training that can be provided
at community colleges such as welding, plumbing, heating and air-condition installation. Community colleges contribute to economic
growth by empowering the unemployed with skills needed to be employable, thus increasing the productivity of the locally-based
industries more especially in rural areas.
Figure 16: Number of students enrolled in CET colleges, 2011-2015
0
50000
100000
150000
200000
250000
300000
350000
NU
MBE
RS
2011 2012 2013 2014 2015
297 634 315 068 257 823 275 268 283 602
Source: Statistics on Post-School Education and Training in South Africa (2011, 2012, 2013, 2014). CET College Annual Survey 2015, data extracted in December 2016.
People enroll in community education and training colleges to acquire education and skills that will increase their chances of getting
employment.
According to the DHET11, the number of students enrolled in CET colleges was 283 602 in 2015. Enrolment in these colleges was 3%
(8 334) higher as compared with 2014 and 4.7% (14 032) lower when compared with 2011. However, the highest number of students
enrolment was recorded in 2012 (315 068) while the lowest enrolment was observed in 2013 (257 823) during the period under review.
8 http://www.treasury.gov.za; Provincial budgets and expenditure review: 2010/11 - 2016/179 Centre for Education Rights and Transformation, The right to Adult and Community Education: book 10:200810 Alison Felix and Ada Pope, The Importance of Community Colleges to the Tenth District Economy: www.KansasCityFed.org11 Department of Higher Education and Training: Statistics on Post-School Education and Training in South Africa: 2015.
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Figure 17: Number of students in CET colleges by programme, 2012-2015
0
20000
40000
60000
80000
100000
120000
140000
160000N
UM
BER
S
2012 2013 2014 2015
AET Level 1-3 93 936 62 183 61 316 67 468
AET Level 4 134 276 109 352 114 760 126 307
Grade 10 and 11 471 1172 1 031 1 294
Grade 12 71 037 70 536 80 214 84 526
Other skills Development 6 658 6 264 5 300 4 007
Source: Statistics on Post-School Education and Training in South Africa (2011, 2012, 2013, 2014), CET College Annual Survey 2015, data extracted in December 2016.
The distribution of student’s enrolments in CET by programmes is shown in Figure 17. According to the DHET, in 2015, the highest
number of students in CET colleges were enrolled for Adult Education and Training (AET) Level 4 (126 307) followed by AET Levels 1-3
programmes (67 468). Grades 10 and 11 had the lowest number of students in the same period. Even though student enrolment was
high for AET Level 4, a 5.9% (7 969) decrease in enrolment was recorded over the period 2012-2015. AET Levels 1-3 recorded the highest
decrease in the number of students during this period at 28.2% (26 468). In contrast, there were increases in enrolment for Grade 10-12
programmes.
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4.4. ARTISANS
An artisan, also called craftsmen is defined as a skilled manual worker who uses tools and machinery in a particular craft12 . High
Commissioner of Namibia, Mr. Hadino Hishongwa had once said that artisans play an important role in the development of any
country13.
These qualifications have been around for many years. They were removed from the education system mid-1980s, resulting in a shortage
of mid-level skills in the engineering and construction fields. They were brought back by the South African Minister of Higher Education
and Training due to enormous need for people qualified in these skills. The White Paper for Post-School Education and Training: Building
an Expanded, Effective and Integrated Post-School System, as approved by Cabinet on 20 November 2013, also stresses the need for
artisan development14.
Thus, artisanal status is closely associated with labour market demand.
Table 13: Number of learners entering artisanal learning programmes by organisation, 2012/13 - 2015/16
SETAs 2012/13 2013/14 2014/15 2015/16
AGRISETA 70 116 244 347
CATHSSETA 662 312 840 514
CETA 579 1 342 2 104 1 737
CHIETA 1 989 1 694 2 164 3 372
EWSETA 1 316 390 507 1 378
FOODBEV - 267 70 45
FP&M SETA 584 426 958 459
HWSETA - - 109 119
INDLELA 5 795 7 865 7 122 5 734
LGSETA 528 294 754 1 020
MERSETA 4 951 10 394 7 606 8 130
MQA 2 365 2 468 2 621 1 848
PSETA 53 2 48 33
SASSETA 516 385 539 467
SERVICES 984 968 761 1 127
TETA 711 538 1 579 1 778
W&RSETA 746 209 276 532
Total 21 849 27 670 28 302 28 640
Source: Statistics on Post-School Education and Training in South Africa (2011, 2012, 2013, 2014). CET College Annual Survey 2015, data extracted in December 2016.
Many industries are suffering from a lack of sufficiently qualified and skilled artisans, for example the chemicals sector is one that has
specific skills requirements that need to be addressed if its potential is to be realised15. Sector Education and Training Authority (SETAs)
also recognises the lack of artisan skills in the labour market therefore they enrolled learners on artisan training skills such as electricians,
millwrights, mechanical fitters, boiler maker to meet the industry demands.
Table 13 shows the total number of learners entering artisanal learning programmes had increased from 21 849 in the 2012/13 to 28 640
in the 2015/16 financial year. The figure reflects an increase of 4 225 in the number of learners entering artisanal learning programmes
over the same period. MERSETA, INDLELA, MQA and CHIETA had been recording the highest number of learners who entered the
programme from the 2012/13 financial year to the 2015/16 financial year16.
12 www.answers.com13 http://www.dailynews.gov.bw14 Department of Higher Education and Training; Statistics on Post-School Education and Training in South Africa: 201515 Chemical sector needs specialist skills; https://mg.co.za/article/2013-02-22-00-chemical-sector-needs- specialist-skills16 Department of Higher Education and Training; Statistics on Post-School Education and Training in South Africa: 2015
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Table 14: Top 10 artisan trades of learners entering artisanal learning programmes by SETAs and INDLELA and economic sector, 2015
Trade 2015
Electrician 6 144
Welder 2 877
Mechanical Fitter 2 165
Diesel Mechanic 1 957
Boiler Maker 1 800
Automotive Motor Mechanic 1 780
Plumber 1 690
Fitter and Turner 1 436
Millwright 819
Bricklayer 712
Total 21 380
Source: Statistics on Post-School Education and Training in South Africa (2011, 2012, 2013, 2014). CET College Annual Survey 2015, data extracted in December 2016.
The DHET has identified top 10 artisan trades entering artisanal learning programmes at both INDLELA and SETA. Table 14 shows
the top 10 artisan trades that were registered in the 2015/16 financial year. A higher proportion of learners entering artisanal learning
programmes were electricians 6 144 (28.7%) followed by welders 2 877 (13.5%) and mechanical filters 2 165 (10.1%)17.
17 Department of Higher Education and Training; Statistics on Post-School Education and Training in South Africa: 2015
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Table 15: Number of artisans certificated by SETAs and INDLELA by economic sector, 2014/15- 2015/16
SETAs Economic Sectors 2014/15 2015/16
AGRISETA Agriculture 190 186
CATHSSETA Culture, Arts, Tourism, Hospitality and Sport - 1
CETA Construction 479 582
CHIETA Chemicals 572 861
EWSETA Energy and Water 964 1 170
FOODBEV Food Processing 2 -
FP&M SETA Fibre Processing and Manufacturing 98 106
HWSETA Health and Welfare 16 79
INDLELA Non-SETA Candidates 4 983 3 791
LGSETA Local Government 486 98
MERSETA Manufacturing and Engineering 6 890 6 600
MQA Mining and Minerals 1 876 2 056
PSETA National and Provincial Government - 29
SASSETA Safety and Security 12 21
SERVICES Services Sector 1 685 928
TETA Transport 1 028 1 402
Total 19 281 17 910
Source: Statistics on Post-School Education and Training in South Africa (2011, 2012, 2013, 2014). CET College Annual Survey 2015, data extracted in December 2016.
Table 15 shows the number of certified learners in the 2015/16 financial year was 17 910 compared to the 28 640 the number of learners
entered artisanal learning programmes in the 2015/16 financial year. This illustrates the difference of 10 730 between the number of
learners entered artisanal learning programmes and the number of learners who were certified in the 2015/16 financial year. It translates
to 37.5% of certified learners in the 2015/16 financial year.
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Table 16: Top Artisan trade of learners completing artisanal learning programmes by SETAs and INDLELA by economic sector, 2015/16
Trade 2015/16
Electrician 3 261
Welder 1 412
Diesel Mechanic 1 337
Fitter and Turner 1 185
Mechanical Fitter 971
Automotive Motor Mechanic 960
Boiler Maker 958
Plumber 826
Millwright 590
Rigger 585
Total 12 085
Source: Statistics on Post-School Education and Training in South Africa (2011, 2012, 2013, 2014). CET College Annual Survey 2015, data extracted in December 2016.
Table 16 shows that 12 085 artisan trades of learners completed compared to 21 380 learners who entered the artisanal learning
programmes by SETAs and INDLELA, by economic sector, 2015/16. This shows that 43.5% of learners completed the learning programme
in 2015/16. It further shows the top 10 artisan trades that were completed in the 2015/16 financial year. The highest number of learners
who completed artisanal learning programme were in the electrical, welder and diesel mechanic trades with 3 261, 1 412 and 1 337
respectively18.
18 Department of Higher Education and Training; Statistics on Post-School Education and Training in South Africa: 2015
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“The opportunity to do what is right is available at all times.”
Jim George
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SECTION 5
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SECTION FIVE: CONCLUSION
The report has examined the trends in the labour demand and supply in the South African labour market. In particular, it focuses on the
demand and supply of occupations and skills required by the economy. Various data sources were used to examine if the possibility
of reaching “full employment” in the South African labour market does exist in the short run. However, it appears that the gap still
persists despite the South African Government’s efforts recorded in the number of enrollments in SET and business management. In
other words, one could observe that the labour market urgently needs graduates to occupy high occupational categories but there
is slow progress in the production of graduates which in turn limit the progress in the absorption of large number of graduates in the
labour market. Thus, the 2016/17 data analysis signals the importance of education in sustaining decent jobs, particularly among youth.
5.1. PROGRESS MADE IN ACHIEVING EMPLOYMENT TARGETS
• The South African economy recovered strongly from April to June 2016, growing by 3.3% quarter-on-quarter analysis
• Government’s incentives have leveraged substantial private-sector investments such as R15.4 billion from leading automotive
assemblers such as Toyota and Ford. The announced investments will create 4 675 new jobs
• The Industrial Development Corporation (IDC) approved R700 million to fund the job drivers. A total of 441 jobs were created
across the automotive and transport equipment; clothing and textiles; heavy manufacturing; and machinery and three
equipment sectors
• Government has identified 40 priority investment projects in critical sectors such as agro- processing and agri-parks, energy and
infrastructure, manufacturing and services and the ability to crowd-in further investment
• Because artisanal skills are needed to grow the South African economy, it is reported that 4 749 new artisans have been certified
by the National Artisan Moderation Body
• The Expanded Public Works Programme (EPWP) created 189 150 work opportunities in all four EPWP sectors in the country
• The Department of Labour, through the Unemployment Insurance Fund (UIF), transferred an amount of R24.4 million, to assist in
the implementation of the Turnaround Solution Programme for Productivity South Africa. This programme assisted 49 companies
and saved 4 760 jobs in 2016/17 financial year.
SECTION FIVE:CONCLUSION
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Policy Implications to address the challenge of job creation:
• Growth strategies need to consider the skills needed to fill the job positions that are advertised than looking only on the types of
jobs to be created
• In order to adapt to the changes in the digital age, policy-making departments need to adjust the labour market policy and
organisational arrangements to guard against this persistent unemployment. Through inclusive labour market policy, enterprises
can innovate and change production methods, and this can improve the current unemployment situation
• There is a need to change the demographic of those involved in artisanal work to include more women and black people
• Strengthen policy interventions in the labour market, such as job incentives, job rotation and job sharing
• Improvement of business climate
• Employment policies need to stress the importance of matching work-seekers with opportunities on the labour market. Thus, the
quality of matching hinges on the labour market relevance of learning outcomes.
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ISBN NO 978-0-621-4593-3