Skills Development in South Africa

Presentation by Ms. Adrienne Bird

(Acting) Deputy Director General: Skills DevelopmentDept. of Higher Education and Training

South Africa

South African Labour ForceSouth Africa has a population of 50 million

• South Africa Occupational Profile in 2009: ‘000– Total labour force 12 974 [1] 100%– Legislators, senior officials and managers 981

7.6%– Professionals 647 [2] 5.0%– Technicians and associate professionals 1 521

11.7%– Clerks 1 462 11.3%– Service workers and shop and market sales workers 1 844 14.2%– Skilled agricultural and fishery workers 83 0.6%– Craft and related trade workers 1 568

12.0%– Plant and machine operators and assemblers 1 083 8.3%– Elementary occupations 2 888 22.3%– Domestic worker 898 7.0%

Quarterly Labour Force Survey, Quarter 4, 2009

[1] 9 073 000 in the formal (organised) economy [2] The majority are teachers and nurses

Unemployed & Unorganized (Statistics South Africa, 4th Quarter Labour Force Survey).

Unemployed:– 4+ million officially unemployed = 24.3%

• 1.7 million were young

Not-economically-active population of 14 million – 1.5 million discouraged work seekers,

• majority low skilled

Unorganised Sector: – Of 13 million in labour force – 2.1 million in the informal (unorganised) economy

• the majority of whom are in the trading sector

Medium Term Strategic Framework goals adopted by the Zuma government in 2009

1. Quality basic education2. A long and healthy life for all South Africans3. All people in South Africa are and feel safe4. Decent employment through inclusive economic growth5. Skilled and capable workforce to support an inclusive growth path6. An efficient, competitive and responsive economic infrastructure

network7. Vibrant, equitable, sustainable rural communities contributing towards

food security for all8. Sustainable human settlements and improved quality of household life9. Responsive, accountable, effective and efficient Local Government

system10.Protect and enhance our environmental assets and natural resources11.Create a better South Africa, a better Africa and a better world12.An efficient, effective and development-oriented public service and an

empowered, fair and inclusive citizenship.

2009 Zuma Administration came to power

• Planning Commission– Performance Agreements for Ministers– Targets for each Minister linked to MTSF goals

• New Human Resource Development Council (cross-cutting all Departments) chaired by Deputy President

• New architecture of government departments linked to goals including:– New Department of Basic Education– New Department of Higher Education and Training

1994 - 2009

• National Qualifications Framework under SAQA• Government departments:

– Department of Education• Schools• Colleges• Universities

– Department of Labour• Skills Development

– Sectoral councils (Sector Education & Training Authorities) – National Skills Fund

– Other departments with HRD responsibilities e.g.• Public service• Health, Defence, Policing, etc.

1994 – 2009 responsibility split• Shared authority for SAQA

• Department of Education:– Predominantly ‘supply side’– Focus on student access and redress, knowledge and citizenship – Challenges:

• Throughput, success and post-learning placement at intermediate levels

• Department of Labour:– Predominantly ‘demand side’– Labour market actors involved in programme design, mainly private

sector delivery– Good placement levels– Challenges:

• predominantly at lower levels of occupational hierarchy, • weaker labour market currency at higher levels (weaker knowledge

component?)

National Qualification Framework• One of first Acts passed in 1995 – with systems in

place and NLRDB

• Goals: – To create a single integrated national framework for

learning achievements;– to facilitate access to, and mobility and progression

within, education, training and career paths;– To enhance the quality of education and training;– To accelerate the redress of past unfair discrimination in

education, training and employment opportunities and– To contribute to the full personal development of each

learner and the social and economic development of the nation at large. (Section 5, National Qualifications Framework Act, 2008 (Ac 67 of 2008)

NQF ‘issues’• Tensions between ‘Education’ and ‘Labour’ – around

who set standards and quality assured programmes (different ‘logics’ – ‘knowledge’ vs ‘occupation’)

• Finally, in 2008, legislation amended to have THREE ‘sub-systems: – One for schools and colleges– One for universities of technology and universities – based on

‘knowledge’ – One for ‘trades and occupations’ based on ‘occupations’ (with

‘professions’ preferring university link although some straddling)

• ‘Under’ overarching body – SAQA = ‘communication, co-ordination and collaboration’ (i.e. agreement to disagree and then to ‘talk’ …)

Pre-2009 Dept. of Education initiatives at intermediate levels

• Schooling (not addressed here but note that insignificant vocational programmes although general technology / entrepreneurship / management programmes introduced)

• Public colleges: 152 colleges merged into 50 with 284 sites to address apartheid racial divides:

– Old trade theory programmes phased out (‘N’ courses) because out-of-date, few apprenticeship contracts and poor placement for those with no apprenticeship contract

– New programme NC(V) = National Certificate (Vocational) introduced• 3 ‘fundamental’ subjects (language, maths, ‘life orientation’)• 4 vocational subjects chosen from one of 14 vocational areas

– ‘not focused on narrow occupational skills’– To provide EITHER access to HEduc. OR trade – First graduates in 2009 (not yet evaluated but low pass rate)

• Adult education learning centres– Focus on young re-taking school leaving certificates– Remedial adult learning (e.g. literacy and school qualifications)

Pre-2009 Dept. of Education intermediate levels financing

• Provincial responsibility• Initially formula linked to number of trainers which was

linked to number of ‘full-time equivalent’ number of learners;

• In March 2007 (pre-Zuma)– Shift to programme-linked funding per learner (major focus on

NCV)– Greater control of College councils– Subsidy covers 80% of programme costs;– Capping college fees (limiting fees for 20%)– Bursary scheme for poor, able students

• Some staff uncertainties resulted … • Link to SETA funding discouraged as argued ‘double

dipping’

Pre-2009 Dept of Labour1. 1998 Skills Dev. Act; 1999 Skills Dev. Levies Act2. National Skills Authority (NSA) – advisory body – 5 parties3. National Skills Development Strategy – 5 year targets to ensure that

levy addresses not just ‘powerful’ organised sector, also weaker end of LM.

4. Sector Education and Training Authorities (SETAs)– Defined by SIC codes for industrial clusters initially (25>23> 21???)– ‘Public Entities’ run by Boards (half Employer / half Union)– Roles:

• Skills voice of the sector (study and report on skills demand)• Developed Sector Skills Plans (informed national scarce skills list)• Design and manage skills interventions in sector• Disburse sectoral skills levy (see later) • Initially qualification design and quality assurance (post 2008 – coordinated

under ‘trades & occupation council’)

5. National Skills Fund– Under Dept. of Labour, advised by NSA, key role of Director General;– Role:

• Strategic Projects (behind key government strategies)• ‘Bottom up’ projects (community requests)

DoL Levy scheme

• 1 % payroll levy (above threshold) collected through tax revenue agency

• 80% sent directly to SETAs (each company given an SDL number)

• 20% sent to DoL for National Skills Fund (less cost of collection paid to SARS)

• Spending of Levy:– Initially 60%, then 50% repaid to firms who sent Workplace Skills

Plan and Annual Training Reports (research showed stimulated changed behaviour in medium sized firms)

– Initially 10%, then 20% for SETAs ‘discretion’ (sector projects)– 10% for SETA administration and services– 20% for National Skills Fund projects

Pre-2009 Dept of Labour ‘Learnerships’

• Learnerships: SDA (2008) Chapter 4, Section 2: – A SETA may establish a learnership if it has:

• a structured learning component;• a structured work experience component • lead to a trade, occupation or profession qualification on NQF and• registered with the Director-General.

– Linked to ‘learnership agreement’ i.e. s/t learning contract with employers – ERs given GRANT and TAX BREAK (NB)

– ESDA (group training) – create ‘employer’ and place in small firms– SETAs given targets through NSDS– Study: across12 SETAs (201 employers) in 2004 found:

• 77% previously unemployed people placed after completion and • 73% were employed by the same employers

– Criticism: • Mainly partnerships with private providers (public sector? Cost? Quality?)• Focus at lower end (although not exclusively);• Weak on ‘knowledge’ / ‘citizenship’ component;

National Skills Fund projects Focus on unemployed and vulnerable

• Targets set for literacy and numeracy programmes, training for income generation in rural areas, co-operatives etc.

• Link to major government initiatives e.g. – Training embedded in Expanded Public Works Programmes and – Training component of National Youth Service– Training for prisoners with Correctional Services – Active Labour Market Strategy etc.

• Strategic Projects:– NSDS I: SETAs to ‘reach into’ unorganised segments e.g.

• CTFL: Upgrading for outsourced homeworkers in geographical localities• Banking: Reach to lenders and borrowers of small loans;• Services: Training for Domestic Workers linked to career path into

specialised sectors e.g. health, social security etc.)• Finance: Improve throughput of learners in accounting programmes in rural

schools and universities (significant increases achieved) …– NSDS II: Provincial governments apply for ‘growth strategy’ linked

training programmes. E.g. ‘Financial management in one province, etc.

Active Labour Market Strategy

• Identification and systematic training of community liaison workers (given stipend) – Funding from GTZ for development, but moving to NSF.

• ‘Find’ unorganised entrepreneurs• Engage with them on full spectrum of work from

technical to managerial /financial• Mentoring provided• Provide targeted workplace interventions• Impact: improved productivity, employment and income

returns. • Fairly expensive but effective programme• Challenge: find linkage with Department of Trade and

Industry’s interventions for small businesses.

Education / Labour• Education

– Focus on pre-employed youth– Strong on ‘knowledge’ (cf. ‘knowledge economy’) and ‘citizenship’– Accepted as prerequisite at higher levels– Focus on public sector, registered private providers– Weak on labour market linkages at lower levels (linkages maintained at

higher levels through professional bodies)

• Labour– Focus on unemployed and in-service– Strong on work experience– Delivery partners mainly in the private sector (grew with levy )– Accepted as sufficient at lower levels– Relatively weak on ‘knowledge’ so not ‘stand-alone at higher levels

(some partnerships e.g. Accountants to get ER grants).

• Both experienced governance challenges– DoE at college level (very uneven ability to execute new roles esp.

financing and staffing)– DoL at SETA / NSF level – capacity to spend levy income well uneven.

Government intervention

• 2006 scarce skills persistent problem;• Education not steering and Labour not reaching the

intermediate and high levels adequately;• ASGISA (for economic growth) and JIPSA for priority

skills (e.g. engineers and artisans) – led by • Focused on blockages and pipelines• Highlighted need for institutions and labour market to

collaborate – took an occupation but not system view• Employers embraced – key projects especially at artisan

level

Post 2009

Department of Basic Education (schooling)

Department of Higher Education and Training (post-school including school drop-outs)

From Education:

• Colleges

• Universities of Technology

• Universities

From Labour:

• SETAs

• NSF

Remain with Labour:

• Employment Services

New thinking … new possibilities

• NSDS III: New partnerships between institutions (colleges and

universities) and the labour market (SETA intermediaries):

Required qualification Required for practice

PROFESSIONAL BODY MODEL

CO-OPERATIVE LEARNING MODEL

DIPLOMA MODEL Work Integrated Learning

APPRENTICESHIP MODEL

Structured workplace-based learning

Occupational theory - can be institution based & certificated.

INTERNSHIP MODEL

Institution-based qualification (without necessary occupational linkage)

Workplace learning – access prescribed educational qualification level - matric

Professional

Para-professional

Trade / trade equivalent

General to occupation

New focus on youth / pre-employed (although also for workers)

Reduce WSP grant and give grants to firms who give work-based learning opportunities to graduates. Also incentives to institutions to find partnerships with firms

• Investigating ‘collaborative’ funding between public and private sectors – ‘IF’

Some lessons … • Important role at high level to overcome constraints and steer system – hence HRD

Council formally established

• Government architecture matters … reconfiguration of departments has unleashed energy and innovation … (danger – one ‘logic’ over-rides?)

• Need to have steering mechanisms (i.e. planning based on good research and funding steers are key in developing society … but need to ensure sufficient space for local responsiveness).

• Capacity to spend is as important as the capacity to collect a levy

• NOT ‘knowledge OR occupation’ BUT ‘knowledge AND occupation’

• Partnerships across ‘institutions’ and ‘labour market’ does improve employability of learners and placement rates. Consider ‘collaborative’ funding models.

• There is space for formal economy to ‘pull up’ informal (unorganised) sector, especially where there is a supply-chain relationship (e.g. out-sourcing). But where ‘competitive’ then possibilities are limited.

• Skills on their own cannot overcome underlying economic structure BUT raising the skill base does create the environment for moving up the value chain … necessary but not sufficient (cf link to financing, markets etc).

Thank you to

Institute of Applied Manpower Research and NORRAG

for this rich opportunity.

We remain committed to our

11th National Goal:

“Create a better South Africa,

a better Africa and a better world”

And look forward to further collaboration into the future.