Guiding consumers since 2009

South Africa lacks skilled professionals

By Staff Writer
Nicolette Dirk, finance writer, Justmoney.co.za
 
Election watch: Despite new jobs being created for highly skilled professionals, these vacancies cannot be filled due to the  lack of skills in South Africa.
 
This week Loane Sharp, labour market economist at Adcorp, highlighted that the biggest job losses occurred in permanent work, where 22,224 jobs were lost and temporary work, where 3,168 jobs  were lost during January 2014.
 
During the speech delivered by the DA Parliamentary Leader, Lindiwe Mazibuko MP, during the State of the Nation Address debate in Parliament yesterday, she described unemployment as a cold reality for seven million people in South Africa.
 
“It is a reality for far too many South Africans because our government does not have the courage to break the stranglehold that the ANC's alliance partners in COSATU and the SACP have on labour policy. That is why President Zuma has only managed to create 561 000 out of the five million jobs he promised in 2009. Just one job out of every ten promised, “said Mazibuko.
 
She added that this was why there are 1.4 million more unemployed South Africans today than on the day the President took office five years ago.
 
Where were the biggest job losses?
 
Sharp said the most significant job losses were experienced in the manufacturing (-4.7%) and construction sectors (-9.9%).
Sharp added that the skills shortage is a function of both demand and supply factors. Demand factors relate to the quantity of jobs available, whereas supply factors relate to the quantity of suitable applicants. 
 
He attributed South Africa’s skills shortage to emigration of high-skilled workers, immigration restrictions for high-skilled foreigners and a dysfunctional education system.
 
“At present, there are an estimated 470 000 vacancies in the private sector, which are positions that could be filled almost immediately if the skills were available.

More than half (52%) of these positions are in management, and the remainder (37%) are largely professional positions in accounting, law, medicine, engineering and finance,” said Sharp.
 
Unemployed graduates
 
South Africa has a surplus of unemployed graduates with an estimated 344 000 unemployed people with degrees, diplomas and certificates. 
 
“Although a tertiary qualification remains the most successful indicator of finding employment (90% of graduates are employed), the remainder fail to find employment because their qualifications do not match those sought by employers,” said Sharp.
 
He argued that tertiary institutions continue to produce arts, humanities, social science and mid-level professional graduates (i.e. teachers and nurses), whereas employers seek managers and high-level professional graduates (i.e. accountants, lawyers, doctors and engineers).
 
How could government improve skills?
 
According to Sharp, the South African government has found it exceedingly difficult to deliver education and training outcomes that are appropriate to the South African economy’s requirements. South Africa ranks consistently poorly not only in terms of maths and science scores but of education scores generally.
 
“Unfortunately the pervasive ideology of the South African government is to increase government-provided education and training options and restrict private education and training.

Until the government can curb wasteful public expenditure in education, loosen the teaching unions’ stranglehold over the education system, and reform its poorly functioning industry training bodies, South Africa’s skills shortage is likely to grow,” said Sharp.

Recent Articles

Featured Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

What to do when you’ve been denied a home loan

After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?

Best travel cards offered by top South African banks

Planning a trip abroad involves a lot of administration. You need to consider travelling arrangements, reasonable accommodation, and a daily itinerary. But have you considered how you’re going to pay your bills once you arrive? Besides considering bank costs, you also need to consider exchange rates.

Deals

Takealot January Big Sale

Price: Available on request
When: Until 31 January 2020
Where: Online

Annique Restore Package Special

Price: From R600
When: Until 31 January 2020
Where: Centurion

Ster-Kinekor Senior Citizens Discount

Price: Available on request
When: Daily
Where: Nationwide