Various
institutional and regulatory bodies continuously emphasise that organisations
are required to ensure that their workforce profile mirrors the Economically
Active Profile of the population.
The Economically Active
Population (EAP) includes people from 15 to 64 years of age who are either
employed or unemployed and seeking employment.
The Commission for Employment Equity states in its 10th Annual
Report that:
"The Employment Equity Act (EEA), enacted more than 10 years
ago, is meant to drive equality in the work place through equitable
representation of employees from designated groups to broadly reflect the
national demographics of the Economically Active Population (EAP) of South
Africa."
It is also expected that organisations workforce should be
representative of the EAP profile within each occupation level, and not solely
of the total workforce.
The issue the writer takes with the Commission for EE approach
to EAP profiles is the broad sweeping statements made within the report. For
example:-
"The labour market attributes the slow pace of
transformation to lack of Black skills, however our tertiary institutions
show an increased output of Black graduates, which has tripled over the past
10 years. The employers’ employment equity (EE) reports indicate that the
majority of professionals are Black people, which is contradictory to their
excuse of lack of Black skills. On this basis, there should have been an
evident progression of transformation than indicated in this report. I
refuse to believe that South Africa is devoid of Black talent and that Black
people, including women and people with disabilities are genetically
engineered not to succeed. I am left with no choice but to believe there is
resistance to change and that the work environment is not conducive for
Black people, particularly those with exceptional talent. "
iv |
10th CEE Annual Report
2009 - 2010
How these conclusions are arrived at based on the simplistic
data produced in the EE Reports is beyond comprehension. Nowhere in the Reports
is there any measure of "talent" let alone "exceptional talent". Equally
comments that the number of Black graduates have tripled over the past 10 years
are equally unhelpful, vague and ambiguous. In what subjects have Black
(African, Indian and Coloured) persons graduated, are these graduates meeting
actual new and replacement demand for labour, what are the shortfalls in actual
demand (the so-called "skills shortage" everyone acknowledges). What about the
artisan professions, a primary source of entry in semi-skilled and skilled
professions.
The point the writer wish to make is that merely focusing on
so-called shortcomings in EE initiatives, arriving at the conclusion that this
is primarily due to "resistance to change" or that the work environment is not
conducive for Black people, without identifying the underlying causes will
simply lead to another 10 years of failure in achieving the objectives of the
Employment Equity Act.
We fully support the objectives of the Employment Equity and
believe that in time economic forces will naturally lead to the equitable
representation of race groups within each occupational level. Yet to expedite
the achievement of this outcome, all parties need to acknowledge the
considerable shortcomings which exist in the educational system (both primary
and at tertiary levels) in terms of producing individuals who can fulfil
occupational entry requirements.
On the other hand we do not believe that there is a single EAP
profile which can be applied to each occupational level without first addressing
the underlying competency and educational requirements. More specifically we
dispute the validity of the claim that organisations should aim for 87% of their
workforce to be Black at all occupational levels,
simply because this is not the realistic EAP data upon which employers can base
their numerical targets.
The Employment Equity Act is very clear regarding the factors to
be used when assessing a designated employers compliance with the provisions of
the Act:
"42. Assessment of compliance.--In determining whether
a designated employer is implementing employment equity in compliance with
this Act, the Director-General or any person or body applying this Act must,
in addition to the factors stated in section 15, take into account all of
the following:
The extent to which suitably qualified people from and amongst the
different designated groups are equitably represented within each
occupational category and level in that employer's workforce in relation
to the--
demographic profile of the national and regional
economically active population;
pool of suitably qualified people from designated groups from
which the employer may reasonably be
expectedto promote or appoint employees;
economic and financial factors relevant to the sector
in which the employer operates;
present and anticipated economic and financial circumstances
of the employer; and
the number of present and planned vacancies that exist in
the various categories and levels, and the employer's labour
turnover;
progress made in implementing employment equity by other designated
employers operating under comparable circumstances and within the same
sector;
reasonable efforts made by a designated employer to implement its
employment equity plan;
the extent to which the designated employer has made progress in
eliminating employment barriers that adversely affect people from
designated groups; and
any other prescribed factor. "
Analysis of EAP Data
We are informed by these bodies (Department of Labour and
the Commission for Employment Equity) that the EAP profile is as follows:
Table 1
Population Group
National population distribution (Census 2001)
Economically active (QLFS, September 2008)
Economically active (QLFS, September 2009)
Male
Female
Total
Male
Female
Total
Male
Female
Total
African
37.70%
41.30%
79.00%
39.40%
34.70%
74.10%
39.20%
34.20%
73.40%
Coloured
4.30%
4.60%
8.90%
5.90%
4.90%
10.80%
6.10%
5.20%
11.30%
Indian
1.20%
1.30%
2.50%
1.90%
1.10%
3.00%
1.90%
1.10%
3.00%
White
4.60%
5.00%
9.60%
6.80%
5.30%
12.10%
6.70%
5.50%
12.20%
Total
47.80%
52.20%
100.00%
54.00%
46.00%
100.00%
53.90%
46.00%
99.90%
"The data in Table 1 provides a picture of the National
Demographics and the EAP in terms of race and gender. This data provides
vital information for setting employment equity numerical goals and targets.
The labour market should aim for 87% of their workforce to be Black
at all occupational levels."
6 |
10th CEE Annual Report
2009 - 2010
Displayed in graphic format, the data may be represented as
follows:
The current EAP data is based on the EAP data obtained from STATS SA's Quarterly
Labour Force Survey, September 2009.
Reverting to the
original STATS SA source, the race profile of the country's EAP profile is as
follows (July - September 2009)
All
Population EAP
31,172,000.00
Labour Force
17,077,000.00
Employed
12,885,000.00
75.5%
Unemployed
4,192,000.00
Not economically active
14,095,000.00
African
Population EAP
24,215,000.00
Labour Force
12,544,000.00
73.46%
Employed
8,936,000.00
Unemployed
3,609,000.00
Not economically active
11,670,000.00
Coloured
Population EAP
2,987,000.00
Labour Force
1,927,000.00
11.28%
Employed
1,510,000.00
Unemployed
417,000.00
Not economically active
1,060,000.00
Indian
Population EAP
895,000.00
Labour Force
519,000.00
3.04%
Employed
453,000.00
Unemployed
66,000.00
Not economically active
376,000.00
White
Population EAP
3,075,000.00
Labour Force
2,087,000.00
12.22%
Employed
1,986,000.00
Unemployed
101,000.00
Not economically active
988,000.00
The Quarterly Labour Force Survey (QLFS) frame has been
developed as a general-purpose household survey frame that can be used by all
other household surveys irrespective of the sample size requirement of the
survey. The sample size for the QLFS is roughly 30 000 dwellings per quarter.The
sample is based on information collected during the 2001 Population Census
conducted by Stats SA. In preparation for the 2001 Census, the country was
divided into 80 787 enumeration areas (EAs). Stats SA’s household-based surveys
use a master sample of primary sampling units (PSUs) which comprises EAs that
are drawn from across the country.
The EAP data may be further categorised according to
educational level, a key determinant in setting EE numerical targets for
organisations and one which is regretfully or conveniently "ignored" by the EE
Commission or DOL. The failure to acknowledge or give credence the educational
profiles of the EAP data in our view leads to a number of anomalies:
If employers are under the impression that a particular skill profile is
available within the labour market place, they may focus their affirmative
action measures in areas such as recruitment when in fact their limited
resources could be focused on developing this talent instead;
...
The educational profiles of the EAP data (Census
2001)
The original 2001 Stats SA Census data provides
the following educational profile of the population by province, race and
gender:
A snapshot view of the results is presented in the
following graph.
Note:
Universe for all persons aged 20 years and older.
Figures greater than 0 and less than 4 are randomised to preserve
confidentiality
Report of the Census Sub-Committee to the South African Statistics
Council on Census 2001
A consolidated view of the same data where persons with "no
schooling", "some primary" and "completed primary" are consolidated the results
are as follows:
Based on a simple assumption that all persons within the occupational levels of
Top management, Senior management, Professionally qualified and experienced
specialists and mid-management & Skilled technical and academically qualified
workers, junior management, supervisors, foremen, and superintendents should at
least be in possession of a Matric (or equivalent) or Higher qualification, then
on a national basis, the EAP profile by race and gender for these occupational
categories could quite legitimately be as follows:
Gender
Education
African
Coloured
Indian
White
Male
All (no schooling / completed primary)
15.99%
1.51%
0.16%
0.18%
Some secondary
10.90%
1.73%
0.47%
1.41%
Grade 12 / Std 10
6.24%
0.84%
0.54%
2.36%
Higher
1.72%
0.22%
0.23%
1.89%
Grade 12 or Higher
7.96%
1.05%
0.77%
4.25%
Female
All (no schooling / completed primary)
20.08%
1.84%
0.34%
0.23%
Some secondary
12.07%
1.96%
0.49%
1.77%
Grade 12/Std 10
6.43%
0.87%
0.48%
2.66%
Higher
2.19%
0.23%
0.20%
1.77%
Grade 12 or Higher
8.62%
1.10%
0.68%
4.43%
EAP ALL
Grade 12 or Higher
16.58%
2.15%
1.45%
8.68%
Displayed in
graphic format
As
such, and based on Census 2001 data, the EAP profile for persons with a Grade 12
(or equivalent) and higher qualification, the race profile is very different
from the one postulated by the EE Commission and DOL for any organisational
position requiring a minimum of a matric qualification (or equivalent).
African
Coloured
Indian
White
EAP ALL*
Grade 12 or Higher
16.6%
2.2%
1.5%
8.7%
Higher (Post Matric Only)
3.9%
0.4%
0.4%
3.7%
* As a percentage of the total EAP.
Summary (Census 2001)
African
Coloured
Indian
White
EAP ALL
Some secondary and below
59.04%
7.04%
1.46%
3.59%
EAP ALL
Matric
12.67%
1.70%
1.02%
5.02%
EAP ALL
Post Matric Only
3.91%
0.45%
0.43%
3.65%
EAP ALL
All
75.63%
9.20%
2.92%
12.26%
EAP ALL
Matric plus Higher
16.58%
2.15%
1.45%
8.68%
Distribution by Race and Education within each Educational Level
A different form of analysis would be to determine the % race and gender
profiles within each educational level itself as this would better reflect the
available the race and gender distribution within these levels:-
African
Coloured
Indian
White
Male
Grade 12/Std 10
62.6%
8.4%
5.4%
23.6%
Higher
42.4%
5.3%
5.7%
46.6%
Female
Grade 12/Std 10
61.6%
8.3%
4.6%
25.5%
Higher
49.9%
5.3%
4.6%
40.2%
All
Matric or Higher
57.5%
7.5%
5.0%
30.1%
Higher only
46%
5%
5%
43%
As a result, in order to secure the long term
sustainability of the country's human capital, and if, as we predict, with the
inevitable resolution of the Zimbabwean crisis, the current talent crisis will
reach critical proportions, the priorities for Government and organisations are
clear:
The number of African, Indian and Coloured in the
graduate pool needs to be improved dramatically;
The matriculation success rates and number of Africans
reaching matric level must be improved as a matter of urgency (the 2010
strike in the public sector will clearly undermine these efforts and once
more result in disproportionate matriculation results between those in the
former Model C schools (i.e. generally White & Indian) and those in other
schools (generally Black pupils)). This crisis must be addressed to overcome
the disproportionate education levels between the different race groups;
The shortage of skills in the artisan trades (and the
fact that over 75% of current artisans will be retiring in the next 15
years) must become a national priority. The artisan trades represent an
ideal entry level for young adults entering the labour market who are not
"academically" orientated, yet who can still earn decent income levels and
who will remain in high demand in the labour market well into the future
whilst being critical role players in the economy ("the nuts and bolts" of
any industrial / manufacturing economy);
If the end result of the equitable representation of
all race and gender groups at all occupational levels is to be achieved then
the underlying educational deficiencies have to be addressed. Government
should prioritise its efforts in this field, the EE Commission and DOL
should acknowledge the shortcomings in implementing its so-called EAP
mandate without resorting to a "name and blame" approach on organisations
struggling to achieve their EE goals and targets and should become more
discriminating in its application of overly simplistic EAP data, and
finally, organisations should be rewarded for supplementing the failings in
the educational system when implementing learnerships, apprenticeship
schemes, bursaries and internships even if this means being unable to meet
DOL's EAP targets for Top, Senior and Professional occupational levels.
Achieving this on a national basis would take more than 5 - 10 years - what
may be lost in the short term will result in significant gains in the long
term and could well resolve South Africa's intermediate and long term talent
"crisis".
The approach discussed in this article is not new, and
has been addressed in various discussion papers commissioned by National
Treasury in "Final recommendations of the International Panel on Growth", by
Ricardo Hausmann, Chairman in the context of Broad Based Black Economic
Empowerment initiatives :-
"It is important, in this respect, to stop and reverse the emigration of
high-skilled whites. This will be helped by the rising compensation for the
highly skilled, which will worsen income distribution, but there is
substantial anecdotal evidence that BEE rules may be sending a negative
message to both young white university graduates and those in senior
management. In addition, BEE rules are increasing the demand for
high-skilled previously disadvantaged South Africans at a time when they are
already facing very high and rising demand. To the extent that this tightens
the skills constraint at the top it lowers the demand for lesser skilled
workers and thus widens income and opportunity disparities among the
previously disadvantaged. Encouraging the retention of all high skilled
South Africans and the attraction of foreign high skilled persons will be
crucial to limit wage inequality and facilitate the creation of jobs for the
less skilled and thus achieve shared growth.
An additional source of concern is the fact that the training system is
not helping ease the skills constraints associated with technical training.
In 1998 Parliament approved the Skills Development Act that created Sector
Education and Training Authorities (SETAs). The generalized perception is
that the performance has been mixed. Some SETAs have achieved significant
involvement by employers and workers and deliver adequate training. Many
however do not. (page 9)
There is now very strong demand for blacks for senior management
positions and it is likely to increase significantly with current growth
trends. As firms try to comply with this element of the BEE scorecard, they
will face an increasing skills constraint at the senior management level. By contrast, there is ample room to improve empowerment through job
creation, training and supplier development for people currently at the
bottom of the income distribution. We shall propose that the scorecard be
rebalanced to encourage these latter types of activities. It would
also be useful to define sunset clauses for BEE: if the policy is
successful, it should become redundant. (page 11)
Recommendation 11. Encourage high-skilled immigration.
A simplified fast-track for all work visa applicants with a postgraduate
degree from a reputable institution would help ease the skills shortage
while at the same time create more jobs for less-skilled South Africans.
(page 13- 14)
Recommendation 19. Add elements to the existing scorecard, giving
firms flexibility to decide where to focus their empowerment initiatives.
The new elements should focus explicitly on bottom up empowerment
interventions and economic growth elements such as employment or firm
creation, learnerships, apprenticeships and training and spatial
development. Firms should be required to explain in a succinct plan the
elements and targets they choose, given the context of their sector."
(page 16)
and in the paper entitled "Two
Policies to Alleviate Unemployment in South Africa" by James
Levinsohn, Ford School of Public Policy, University of Michigan and NBER, August
28, 2007
"This paper adopts the quite pragmatic view that employment
policy must deal with the labor market that exists, not the labor market one
would like to have. Make no mistake about it– if the undereducated
unemployed South Africans were instead the products of a first-rate
technical education in, say, engineering or design, unemployment would most
certainly be alleviated. The oft-heard claim that there is a mismatch
between the skill set with which many Matriculates graduate and the skill
that are in high demand in the labor market is also true. ... It is
generically sound economic policy to invest in a great education system and
South Africa is no exception. Fixing the school system, though, is a long
term project and one that will not address today’s unemployed. Indeed, a
much improved school system is going to leave those who are the product of
today’s lesser school system with a yet greater disadvantage in the labor
market. This is not a reason to ignore school reform, but it is a reason to
think hard about policies that will alleviate unemployment in the near term.
(pp 21 - 22)"
The position adopted in this article is reinforced in the
further paper commissioned by the then Minister of Finance in 2007 entitled "Is
BEE a South African growth catalyst? (Or could it be…)" Matthew Andrews,
Kennedy School, Harvard University, Draft, September 2007, Produced for the
South African Government as part of the International Growth Panel Initiative.
"The number of black CAs increased from 259 in 2002 to 857
in June 2007. This is a growth of 230 percent in the five and a half years,
with a steady 25 percent growth rate in the past two years. The number of
non-white (PDI) CAs grew by 141 percent over the period, at a rate of about
17 percent per annum in the past two years. But numbers of Black and PDI CAs
are still relatively low. 857 Black CAs is less than four percent of the
total number, which is dominated by whites at 23,091 or close to
eighty-eight percent. Numbers are similar for other ‘trusted’ professions
like engineering and law.
If firms continue to look to these groups for their
executives, there simply is not much chance of materially changing executive
profiles in the short or medium term. This completely compromises the
ability to attain [BBBEE] Code of Good Conduct goals. Consider the kind of
performance needed to produce enough PDI accountants to ensure that three
quarters of this group are non-white by 2014: If the white total was held
static (23,091) 92,364 CAs would be required in total; 69,000 new CAs would
have to be produced before 2014; This would mean raising the rate of growth
in PDI CAs to 56.5 percent every year; At this rate there would still only
be 11,357 black CAs in South Africa.
This is obviously a problematic scenario, created by the
rigidity of the BEE Codes. The pressure to meet the Codes creates a
number of negative incentives. First, there is pressure to hire as many of
the small pool as possible, which leads to artificially high demand for an
already high demand group of people. Most of the firms in the sample
shared this as a problem manifesting in extremely high salaries for
professional people and a lot of job-hopping by these groups. Second is the
pressure to push these individuals through the education system without
sufficient training, undermining confidence in the qualification. Firms also
indicated concerns about this. Finally, there is an incentive to not only
slow down production of white professionals but to actually stop hiring
those already in the system (meeting the quota may require this). These
people are skilled enough to find international jobs; their mobility makes
them easy to lose." (page 64 - 65)
EAP Education Profile by Race and Gender since Census
2001
The question then remains as to whether the
educational profiles of the labour force have changed in any significant fashion
since 2001, acknowledging that the next national census will only take place in
2011.
Whilst the data is not available by race and gender,
the following statistical picture emerges:-
Total
31,172,000.00
No schooling
1,427,000.00
5%
Less than primary completed
3,524,000.00
11%
Primary completed
1,973,000.00
6%
Secondary not completed
13,493,000.00
43%
Secondary completed
7,379,000.00
24%
Tertiary
3,053,000.00
10%
Other
322,000.00
1%
The following graph compares the Quarterly Labour Force
Survey, Quarter 3, 2009 with data from Census 2001
What is evident from this
analysis is that:
The number of persons with no schooling has
significantly decreased from 18% to 5%;
The number of persons who have some primary education
has improved, but only by 5%;
On the other hand
The number of persons who completed a secondary
education has only improved by 4% in the 9 years from Census 2001 to 2009;
Even more disturbing is the fact that the number of
persons who have completed a tertiary education has only increased by 2%
(possibly 3%). This population group represents the primary source of
skilled and professional labour.
Consolidating the data for those with "no schooling", "some
primary" and "completed primary", the following is evident:
The disturbing results of
the QLFS projections are that:
Over 22% of the labour workforce have a standard 5 or
lower qualification;
43% possess some form of secondary education but not a
matric;
24% possess a matric or equivalent; and
10% have some form of tertiary qualification;
Amongst those persons who are unemployed (4,192,000):
2% have no schooling;
9% have no some primary education;
5% have completed primary education;
46% have some secondary education;
32% have a matric or equivalent; and
6% have a tertiary qualification.
Amongst the so-called "not economically active" which
includes discouraged work seekers (14,095,000):
6% have no schooling;
14% have no some primary education;
8% have completed primary education;
52% have some secondary education;
16% have a matric or equivalent; and
3% have a tertiary qualification.
From
the above analysis it would appear that very little has changed over the
preceding 10 years, especially amongst the number of matriculants and graduate
labour workforce.
Education profile of students who
fulfilled the requirements for a degree/diploma/certificate by race and gender
(2008)
According to data contained in the Higher
Education Management Information System, a total of 133, 241 students fulfilled
the requirements for a degree, diploma or certificate in 2008.
Table: Qualification by Race and Gender (HEMIS, 2008) for 2008 Only
UG DIP/CERT
(1 or 2yrs)
UG DIP/CERT
(3yrs)
1ST BACH DEG
(3yrs)
1ST BACH DEG
(4yrs or
more)
PG /DIP/POST
DIP
DIP/CERT
PG BACH.
DEG
HONOURS/
NH DIP
MASTERS/
MASTERS DIP RESEARCH
MASTERS/
MASTERS DIP NON_RESEARCH
DOCTOR
-ATE
TOTAL
All
18,847.00
27,243.00
29,409.00
25,185.00
6,293.00
513.00
17,055.00
3,779.76
3,734.24
1,182.00
133,241.00
Male
5,109.00
11,885.00
12,389.00
10,801.00
2,259.00
118.00
6,750.00
1,898.23
2,050.77
661.00
53,921.00
Female
13,738.00
15,358.00
17,020.00
14,384.00
4,034.00
395.00
10,305.00
1,881.53
1,683.47
521.00
79,320.00
WM
279.00
1,863.00
5,199.00
3,582.00
954.00
43.00
2,853.00
890.25
932.75
321.00
16,917.00
WF
905.00
1,492.00
6,702.00
4,999.00
1,650.00
52.00
3,774.00
1,067.42
788.58
323.00
21,753.00
AM
4,482.00
8,728.00
5,370.00
5,670.00
959.00
57.00
3,050.00
788.53
862.47
262.00
30,229.00
AF
11,922.00
12,416.00
7,415.00
6,918.00
1,645.00
284.00
5,068.00
551.41
607.59
121.00
46,948.00
CM
224.00
840.00
646.00
679.00
147.00
18.00
388.00
92.83
108.17
25.00
3,168.00
CF
618.00
974.00
1,093.00
1,259.00
382.00
54.00
690.00
108.40
94.60
30.00
5,303.00
IM
111.00
453.00
1,156.00
859.00
181.00
-
443.00
114.90
136.10
52.00
3,506.00
IF
258.00
475.00
1,781.00
1,188.00
339.00
5.00
753.00
148.85
176.15
44.00
5,168.00
Male
No Race
13.00
1.00
18.00
11.00
18.00
-
16.00
11.72
11.28
1.00
101.00
Female
No Race
35.00
1.00
29.00
20.00
18.00
-
20.00
5.45
16.55
3.00
148.00
Graph: Qualification by Race
and Gender as a % of Level of Qualification for 2008 Only
Graph: Qualification
by Race and Gender as a % of Total for 2008 Only
Graph: Tertiary
Qualification by Race and Gender as a % of Total for 2008 Only
Graph: Tertiary
Qualification by Race as a % of Total for 2008 Only
What is apparent from
this analysis is that the race distribution for persons with some form of
tertiary qualification is very different from the EAP profile postulated by DOL
and the Employment Equity Commission.
Conclusion
By applying the universal and non discriminating EAP data as enforced by DOL and
the EE Commission (i.e. that organisations should aim for the following racial
representation at all occupational levels [African 73.5%, Coloured 11.3%, Indian
3% and White 12.2%]) ignores the underlying educational profiles within each
racial group;
When interrogating the EAP data by educational
level, the relevant or applicable EAP profile from which employers "may
reasonably be expected to employ or promote employees" [s42 Employment Equity
Act] is very different;
Employers cannot be reasonably
expected to employ persons with no schooling, no completed primary schooling,
completed primary schooling and possibly even no completed secondary schooling
at the following occupation levels:
Skilled technical and academically qualified workers, junior
management, supervisors, foremen, and superintendents
If one accepts this premise then the available EAP profile
by race changes dramatically. Based on Census 2001 data, the EAP profile for
these occupational levels are in fact:
Gender
Education
African
Coloured
Indian
White
EAP ALL
Grade 12 or Higher
16.58%
2.15%
1.45%
8.68%
The tertiary educational profiles since Census 2001 have
not sufficiently changed and the number of persons entering the labour market
without a completed secondary qualification remains dismissal.
Without appreciating these constraints, fictitiously relying on universal EAP
profiles will simply lead to:-
Misdirected affirmative action measures;
Wasted organisational resources;
Frustration by all stakeholders in seeking
transformation of the workforce;
To ensure the South African workforce is in fact
transformed Government and the private sector needs to direct all their
available resources to raising the educational profile of the workforce through
promoting apprenticeships, learnerships, ABET and tertiary bursary schemes.
These initiatives will take more than 1, 2 or even 3 decades to achieve:
"If the white total was held static (23,091) 92,364 CAs would be required in total; 69,000 new CAs would
have to be produced before 2014; This would mean raising the rate of growth
in PDI CAs to 56.5 percent every year; At this rate there would still only
be 11,357 black CAs in South Africa." "Is
BEE a South African growth catalyst? (Or could it be…)" Matthew Andrews,
Kennedy School, Harvard University, Draft, September 2007, Produced for the
South African Government as part of the International Growth Panel Initiative.
Even if the number of graduates could be increased it would
still take years for these market entrants to acquire the skills and work
experience necessary reach senior levels of management.
What
is no longer tenable based on an analysis of the EAP profiles of the labour
market is ongoing blind acceptance of the vague and ambiguous comments made by
the EE Commission and systematically adopted by DOL and its inspectors, such as
those expressed below:-
"The labour market attributes the slow pace of
transformation to lack of Black skills, however our tertiary institutions
show an increased output of Black graduates, which has tripled over the past
10 years. The employers’ employment equity (EE) reports indicate that the
majority of professionals are Black people, which is contradictory to their
excuse of lack of Black skills. On this basis, there should have been an
evident progression of transformation than indicated in this report. I
refuse to believe that South Africa is devoid of Black talent and that Black
people, including women and people with disabilities are genetically
engineered not to succeed. I am left with no choice but to believe there is
resistance to change and that the work environment is not conducive for
Black people, particularly those with exceptional talent. "
iv | 10th CEE Annual Report
2009 - 2010
Compare these remarks to the more sophisticated and empirically based
observations made in the Human Resource Development Strategy for South Africa (HRD-SA)
2010 - 2019 which clearly outline efforts to overcome the underlying educational
barriers, and improve the quality, quantity and calibre of the education, skills
and competencies of labour market entrants. In the long term, solving these
barriers would naturally lead to the transformation of the workplace through
economic forces of labour demand and supply and no doubt, accelerated through
well-placed employment equity initiatives. [Download
Human Resource Development Strategy for South Africa (HRD-SA) 2010 - 2019 (964K)]
"There is a need to ensure optimal responsiveness of
education and training activities to the country’s development agenda, and
the demand for skilled human resources in the labour market.
There are pressing challenges related to the quality of
learning attainment and competency acquisition within the skills development
pipeline, starting from basic education.
The effectiveness of public education and training
institutions, in general, has yet to reach optimal levels. The current
challenges with regard to effectiveness have made it difficult for the
country to reap the rewards when compared with international levels of
public and private investment in education and training.
The primary driver of supply is undoubtedly the output
generated by various education and training activities in the country.
However, numerous other factors – such as those that determine the way the
labour market operates – also play a significant role in shaping supply."
Education quality and the distribution of education outcomes
"A number of countries with lower incomes per capita do
better than South Africa, for instance Indonesia and Egypt (in TIMSS) and
Kenya (in SACMEQ). South Africa is not alone in its challenge regarding the
quality of education. Botswana and Morocco, for example, also performed at
lower levels compared with other countries, given their income per capita.
Education quality impacts on the entire skills pipeline. The quality and
outcomes of school education has an important impact on the efficacy of
education and training within FET, the Occupational Learning System and HE.
The issue of education quality is undoubtedly a central challenge for HR and
development in South Africa.
The data ... confirms that the problem of unemployment is
particularly notably for the 20 to 24-year age group. It also suggests that
the level of qualifications is a consistent predictor of employment status
within each of the age groups indicated. The figures also suggest that over
50% of young people who have less than matric are unemployed. Notably, it
appears that possessing a matriculation certificate does not result in
dramatically improved labour market outcomes: just under 50% of 20 to
24-year-olds with matric are unemployed. While the unemployment figures for
20 to 24-year-olds who have a diploma and degree are still high, they are
considerably better than the rates for those whose highest qualification is
matric or less.
The Five-year Strategic Framework seeks to provide a
medium-term strategic framework (MTSF) for HRD in South Africa. The
commitments, strategic priorities and activities contained in the Five-year
Strategic Framework are explicitly designed to respond to the challenges
enumerated earlier. The commitments below are given as a collective
commitment by all stakeholders in response to a call to action. The word
“we” is therefore used to signify this collective commitment and common
purpose.
COMMITMENT ONE:
We will urgently overcome the
shortages in the supply of people with the priority skills needed for the
successful implementation of current strategies to achieve accelerated
economic growth:
Strategic Priority
1.1: To accelerate training output in the priority areas of design,
engineering and artisanship that is critical to the manufacturing,
construction and cultural industries.
Strategic Priority 1.2:
To increase the number of
skilled personnel in the priority areas of design, engineering, artisans
that are critical to manufacturing, construction and cultural activities
through net immigration.
Strategic Priority
1.3: To accelerate the number of new training graduates in priority
economic sectors identified in ASGISA, the NIPF and IPAP.
COMMITMENT TWO
: We will increase the number of
appropriately skilled people to meet the demands of our current and emerging
economic and social development priorities:
Strategic Priority 2.1:
To ensure that skills
development planning is credible, integrated, coordinated and responsive to
social and economic demands.
Strategic Priority 2.2:
To ensure that skills
development programmes are demand-led through substantive and systematic
input from employers in the determination of skills demands for the country.
Strategic Priority
2.3: To improve the employment outcomes of post-school education and
training programmes.
Strategic Priority
2.4: To ensure that FET and HET are responsive to the skills demands
arising from South Africa’s social and economic development imperatives.
COMMITMENT THREE
: We will ensure improved universal
access to quality basic education and schooling (up to Grade 12) that is
purposefully focused on achieving a dramatic improvement in education
outcomes for the poor; that is focused on equipping learners with optimal
capacity for good citizenship; and pursuing post-school vocational education
and training or employment.
Strategic Priority
3.1: To ensure equity in education inputs and learning outcomes.
Strategic Priority
3.2: To ensure that education outcomes promote values which are
consistent with good citizenship and the provisions of the South African
Constitution.
Strategic Priority
3.3: To improve learner performance and quality of education in the
schooling system.
Strategic Priority
3.4: To expand age-appropriate participation in early childhood
education.
Strategic Priority
3.5: To improve the percentage pass rate in Grade 12 and ensure that the
profile of passes is commensurate with the country’s social and economic
imperatives.
Strategic Priority
3.6: To ensure that all learners, especially the poor, have access to
basic health-promoting interventions that are aimed at removing barriers to
learning."