Africa Skills economy

Skills – a key to economic growth

Although the Western Cape still has the lowest expanded unemployment rate in the country the number increased over the past eight months from 20.7% in February to the most recent 27.3%, according to the Stats SA Quarterly Labour Force Survey (QLFS) released on 29 September 2020, an increase of 6.7%.

According to Ronnelie Niewenhuis, managing director of the Africa Skills Knysna Training Centre this trend reflects the urgent need for professional market-driven skills training among communities in the province. Niewenhuis is concerned about the lack of technical and business skills among young people leaving school at an early stage or after matric.

“Not everyone is able to attend formal tertiary education e.g.university. However, trade skills, business skills and management skills remain within reach on a college level.”

David Maynier, the Western Cape minister of finance confirms that the continuing lockdown and especially levels 5, 4 and 3 earlier has had a major impact on the provincial economy. Compared to the same period in 2019, 321 000 jobs have reportedly been lost. “This reality had a devastating effect on people’s lives in the Western Cape.”

He says skills training qualifications means more and better opportunities. Young people with skills qualifications can consider jobs where unskilled workers would never be able to venture. “Skills are a key to economic growth, businesses growth and job creation.”

“More and more school-leavers are less and less skilled. The concern is rising that South Africa’s quality of education continues to decline. Lack of skills among prospective workers is one reason for high unemployment. The unskilled job seeker has fewer options than skilled graduates,” says Niewenhuis.

She reiterates that new skills empower youth and unemployed to find employment in the mainstream economy. “With new marketable skills, the possibility of formal employment is increased significantly ensuring a regular salary and benefits which is impossible prior to skills training. It means more opportunities.”

Min Maynier says the importance of access to skills training is confirmed by the fact that South Africa has historically had decades of unequal education.” Now hardworking and dedicated South Africans from all communities have an equal option to choose training in the skills required to function in the current economy.”

“Many skilled workers left South Africa due to the rise in violent crime and perceived better opportunities abroad. They need to be replaced continuously and the increase in poverty and dependence on state grants are to be addressed through formal skills qualifications,” says Niewenhuis.

Fact is that the skills crisis in the country and the province is calling for affirmative action within all communities. It seems that many South Africans who would now take the positions opened to them by fair employment practice had not been equipped with the necessary skills. This situation needs to be addressed.

“Without up-skilling the existing workforce and skilling youth and unemployed community members, the transformation would effectively lead to increased unemployment and incompetent workers working in jobs ineffectively.”

Niewenhuis sees the role of the Department of Education and Training, and of skills trainers such as Africa Skills who train in George, Gauteng, Northwest and in Knysna to equip school leavers and unemployed citizens to secure and improve their family livelihood.

Umsizi Sustainable Social Solutions stated recently that companies are spending billions of Rands on outsourcing skills. Literally, hundreds of billions of Rands have been spent on contractors and consultants who have the skills that the labour force lacks.

School leavers are urged to engage in the possibility to obtain formal skills for the passion unique to their interests, be it traditional artisan trades including plumbing, electrician, welding, carpentry, hairdressing or new forthcoming Industrial Revolution career skills such as IT, Social Media, Content Strategists or Office or Management skills.

“Integration of effective skills development by corporates and other businesses into business development plans and Corporate Social Responsibility plans will be making a real difference to the future.”

Information on skills training options and 2021 planning is available on Africa Skills website.