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EDUCATION AND THE LABOUR MARKET

Hersheela Narsee and Mamphoku Khuluve Presentation to TVET Colleges

June/July 2015

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WHY IS EDUCATION IMPORTANT FOR

THE LABOUR MARKET ?

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MORE EDUCATION – INCREASED CHANCE OF EMPLOYMENT

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MORE EDUCATION: HIGHER WAGES

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GROWTH IN EMPLOYMENT BY SECTOR: 2001-2012

Share of ChangeAbsolute Relative 2001 2012 (2001-2012)

Primary -719,232* -2.6 15.50% 7.40% -28.80%Agriculture -514,468* -2.7 10.50% 4.80% -20.60%Mining -204,764* -2.2 5.00% 2.60% -8.20%Secondary 537,376* 1.0 21.00% 21.10% 21.50%Manufacturing 112,149 0.3 14.50% 12.70% 4.50%Utilities 10,774 0.5 0.80% 0.80% 0.40%Construction 414,453* 2.5 5.70% 7.70% 16.60%Tertiary 2,720,821* 1.6 63.10% 71.50% 108.90%Trade 513,572* 0.9 21.90% 21.70% 20.60%Transport 288,364* 2.1 4.90% 6.10% 11.50%Financial Services 782,108* 2.8 9.30% 13.30% 31.30% Business Activities N.E.C 502,841 4.2 3.60% 6.60% 20.10% Other 279,267 1.8 5.70% 6.70% 11.20%Community Services 1,041,524* 2.1 17.80% 22.20% 41.70%Private Households 95,253 0.4 9.20% 8.30% 3.80%Total 2,497,763* 1.0 100.00% 100.00% 100.00%

Growth (2001-2012) Employment Shares

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GROWTH IN EMPLOYMENT BY SECTOR: 2001-2012

Growth in employment over the past decade was in the

following sectors (in order of priority):

• Community Services (eg. Government)

• Financial Services (eg. Banking, Insurance)

• Trade (eg. Wholesale and Retail)

• Construction

• Transport

In the future, could expect growth in agricultural sector

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GROWTH IN EMPLOYMENT BY OCCUPATION: 2001-2012

Share of Change

Absolute Relative 2001 2012 (2001-2012)

High-Skilled 1,141,326* 2 20.80% 25.30% 45.70%

Managers 475,491* 2.7 5.90% 8.30% 19.00%

Professionals 665,835* 1.7 14.90% 17.00% 26.70%

Medium-Skilled 767,555* 0.6 49.60% 46.10% 30.70%

Clerks 300,982* 1.2 9.80% 10.20% 12.10%

Service & Sales Workers 627,027* 1.8 12.70% 15.00% 25.10%

Skilled agricultural and fishery workers -311,122* -8 3.40% 0.50% -12.50%

Craft & Trade Workers 124,687 0.4 13.70% 12.10% 5.00%

Operators & Assemblers 25,981 0.1 10.10% 8.40% 1.00%

Unskilled 612,716* 0.8 29.40% 28.50% 24.50%

Elementary Occupations 517,463* 1 20.10% 20.30% 20.70%

Domestic Workers 95,253 0.4 9.20% 8.30% 3.80%

Total 2,497,763* 1 100.00% 100.00% 100.00%

Growth (2001-2012) Employment Shares

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GROWTH IN EMPLOYMENT BY OCCUPATION: 2001-2012

Growth in employment over the past decade was in the following occupational categories (in order of priority):

• Professionals

• Service and Sales workers

• Elementary occupations

• Managers

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CHANGES IN SKILLS SHARES BY SECTOR: 2001-2012

Change in Prop Change in No

2001 2004 2007 2010 2012

High-Skilled 2.90% 5.40% 4.80% 7.20% 7.60% 4.8 percentage points 27,602

Med-Skilled 54.50% 52.50% 53.10% 35.20% 36.80% -17.7 percentage points -571,229*

Unskilled 42.60% 42.10% 42.10% 57.60% 55.50% 12.9 percentage points -175,392*

Total 100% 100% 100% 100% 100%

High-Skilled 14.20% 15.30% 16.60% 19.00% 18.10% 3.9 percentage points 188,518*

Med-Skilled 69.80% 64.70% 63.60% 64.20% 61.50% -8.3 percentage points 136,140

Unskilled 16.00% 19.90% 19.80% 16.80% 20.40% 4.4 percentage points 214,002*

Total 100% 100% 100% 100% 100%

High-Skilled 27.40% 27.10% 31.80% 28.30% 29.30% 1.9 percentage points 931,498*

Med-Skilled 41.80% 41.50% 39.80% 42.60% 42.60% 0.8 percentage points 1,214,349*

Unskilled 30.80% 31.40% 28.40% 29.10% 28.10% -2.7 percentage points 576,288*

Total 100% 100% 100% 100% 100%

Secondary

537,376*

Tertiary

2,720,821*

Proportions

2001-2012

Primary

-719,232*

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CHANGES IN SKILLS SHARES BY SECTOR: 2001-2012

Growth in employment over the past decade for medium skilled workers was mainly in the tertiary sector (retail, transport, finance, government, hospitality, tourism)

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LABOUR MARKET INTELLIGENCE: CURRENT INITIATIVES

• List of occupations in high demand (Government Gazette, November 2014: www.dhet.gov.za)

• Annual Report on Skills Supply and Demand (March 2016 - forthcoming)

• Strategic Integrated Projects (SIPs): Skills needs for 18 major construction projects can be found on pages 45/46 in the report, Skills for and through SIPs and

https://sips-skills.onlinecf.net

• Sector Skills Plans from SETAs (Scarce skills and priority skills - www.dhet.gov.za)

• Career Development Service (information, advice, guidance and support) www.careerhelp.org.za

• Research from the Labour Market Intelligence Project (www.lmip.org.za)

• Translation of occupations to qualifications (learning pathways found in http://ncap.careerhelp.org.za)

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EXAMPLES OF OCCUPATIONS IN HIGH DEMAND

Technicians: For example, Engineering, Manufacturing, Bookbinding, Lithography, Food and Beverage, Telecommunications, Steam Engine and Boiler operators, Radiography, Ship’s Deck Officers’, Quantity Surveying, Water quality analyst, Air pollution analyst, health and safety, forestry.

Artisans: For example, Welders, Moulders, Millwright, Riggers, Toolmakers, Boilermakers, Fitters and turners, Mechanics, Electricians, Melters, Plant and machine operators, Machine minders.

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EXAMPLES OF OCCUPATIONS IN HIGH DEMAND (CONTINUED)

• Company Secretary

• Retail Buyer

• Shipping Agent

• Home Economist

• Project Managers

• Supply and Distribution Mangers

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UNDERSTANDING LABOUR MARKETS

• National level (Eg. Occupations in High Demand, Report on Supply and Demand)

• Provincial levels (Eg. Premier’s Offices, SIPs)

• Local levels (Eg. Municipalities, local scoping exercises, SIPs)

• Sectoral level (SETAs scarce and pivotal skills lists)

• Occupation as unit of analysis: Use of Organising Framework of Occupations (OFO) Codes, which classify occupations at different levels

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HOW CAN TVET COLLEGES IDENTIFY LOCAL NEEDS?

• Communicate with major companies to identify skills needs

• Communicate with employment agencies to identify local employer needs

• Department of Labour Employment Services

• SIPs: Colleges of Specialisation

• Local Chamber of Commerce

• NPOs eg Harambee

• What support do you need from DHET? (tools, templates?)

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HOW CAN TVET COLLEGES USE INFORMATION FROM LABOUR MARKET INTELLIGENCE?

• Enrolment planning

• Programme Qualification Mix (PQM)

• Curriculum content

• Staff Recruitment and Development

• Resource allocations

• Student support services (eg. Career information and guidance, bursaries)

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THANK YOU!!