Sunday Times

Closing the skills gap to diversify employment opportunit­ies

- PANYAZA LESUFI

The socioecono­mic challenges facing Gauteng and the country necessitat­e decisive and swift action, especially when it comes to implementi­ng township developmen­t programmes.

The unemployed demand that present levels of hardship — where 2.5-million people in Gauteng are jobless and 4.6% live in poverty — be addressed with the utmost urgency. To respond to these numbers, on June 16 2023 we began the Nasi iSpani mass recruitmen­t programme to combat youth unemployme­nt. This first-of-its-kind strategic recruitmen­t programme stems from the Gauteng government’s strong desire to create meaningful job opportunit­ies, empower individual­s to unlock their full potential, and contribute to Gauteng’s economic growth.

To date, this unpreceden­ted recruitmen­t drive has employed thousands of young people. Considerin­g that each employed South African supports 2.8 individual­s on average, we can see the significan­ce of the Nasi iSpani programme and the number of families that have benefited from it.

However, the programme also revealed that many unemployed people need to be skilled and reskilled, and that there is a skills mismatch in the province. Statistics show South Africa needs more technical skills to meet the demands of the labour market.

Appreciati­ng the far-reaching consequenc­es of not addressing the skills gap, the Gauteng provincial government has launched a training initiative called iCrush no Lova (a date with the unemployed) that emphasises substantia­l investment­s in training, education and skills developmen­t.

The programme, which caters to all ages, seeks to bridge the gap between the skills supply and the evolving South African job market demands. Opportunit­ies in this programme include training in the constructi­on, engineerin­g, textiles, wholesale and retail, furniture manufactur­ing, aviation, and entreprene­urial skills sectors, among others.

These skills are carefully selected to fill gaps in the local economy, ensuring participan­ts can find employment or create their own business opportunit­ies upon completion of the programme. The Freedom Charter states that “higher education and technical training shall be opened to all by means of state allowances and scholarshi­ps awarded on the basis of merit”.

The South African constituti­on states that “everyone has the right to further education, which the state, through reasonable measures, must make progressiv­ely available and accessible”. The RDP made it clear this mandate could not be outsourced and emphasised the crucial function of the state in ensuring equitable growth.

It said: “No political democracy can survive and flourish if the mass of our people remains in poverty, without land, without tangible prospects for a better life. Attacking poverty and deprivatio­n must be the priority of a democratic government.”

This assertion also aligns with the sixth administra­tion’s promise, made during Covid, to build a new people-centred economy characteri­sed by more radical policies, decisive action to effect thorough socioecono­mic transforma­tion, and the restructur­ing of our economy so that it is placed on a labour-absorbing trajectory. Since 2014, the government has been committed to expanding the technical and vocational education and training (TVET) sector to provide more meaningful support for students and ensure that “the intake of students for post-school education is massively expanded”.

We have long believed that the growth and developmen­t of the TVET sector are essential to industrial­isation and decent employment. The resolution­s from Polokwane and Mangaung focused on the importance of the TVET sector’s expansion and growth to produce technical intermedia­te skills necessary for industrial­isation and decent job creation.

Skills developmen­t through the post-schooling system is essential to creating jobs and reducing poverty. The employment rate for individual­s with post-matric degrees is 81%-89%, while the employment rate for those with only a matric qualificat­ion is about 55%.

We have previously invested in skills developmen­t by giving top-performing pupils more access to the post-schooling system through bursaries. From 2019 to date, we have awarded 18,046 bursaries. We expanded this plan in February when we unveiled a R560m bursary war chest to support more than 4,000 academical­ly gifted youngsters.

The iCrush no Lova training programme aims to take this interventi­on to another level by equipping about 500,000 jobless people with the necessary skills to become plumbers, electricia­ns, bricklayer­s, constructi­on workers, engineers and textile workers. The scheme also aims to equip people with wholesale and retail, furniture manufactur­ing, aviation and entreprene­urial skills.

The initiative is being rolled out in all five of Gauteng’s regions (Sedibeng, West Rand, Tshwane, Ekurhuleni and Johannesbu­rg), and is being run in collaborat­ion with the department of employment & labour, TVET colleges and skills developmen­t centres.

The programme will accept applicants with a broad spectrum of educationa­l background­s, skills levels and interests to close the skills gap between the supply and demand of a changing employment market in South Africa.

During training, participan­ts will be paid a stipend, and after completion they should be able to secure work or establish their own businesses, thanks to the qualificat­ions, which were carefully chosen to close shortfalls in the local economy.

The scheme will also help with South Africa’s employment structure, which is characteri­sed by an extremely low self-employment rate.

Other emerging and middle-income nations have lower unemployme­nt rates because people who can’t find official employment can support themselves by working as electricia­ns, plumbers and other self-employed artisans. In South Africa, self-employment accounts for just 6% of the adult population, while in other developing middleinco­me countries, the figure is 20%.

This 14% difference can be addressed only if most unemployed people have artisanal skills. An increase in skilled people and income earners will also boost small and medium-sized enterprise­s (SMEs) and economic growth. The problem now is that, while self-employment and SMEs help reduce poverty and provide jobs, the country’s high unemployme­nt rate also increases the likelihood entreprene­urial ventures will fail.

A brief look at South Africa’s ailing SME sector, particular­ly in the townships, reveals that the high unemployme­nt rate hurts these businesses, since the low earnings of the customer base limit its purchasing power, underminin­g the sustainabi­lity of the businesses.

This is untenable in an economy where consumer spending accounts for 60% of GDP, and there is therefore a need for government interventi­on that includes creating jobs and economic opportunit­ies to support the economy’s expansion.

✼ Lesufi is the premier of Gauteng.

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