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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

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5000

10000

15000

20000

25000

30000

35000

40000

NU

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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

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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

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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

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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

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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

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40000

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80000

100000

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160000N

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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