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What Economically Active Profiles (EAP) are appropriate for your organisation? by Gary Watkins (Part 1)

For EE consulting services

Consulting Services & EE Plans Workshops & Subscriptions
Gary Watkins  | Jaco Taljaard Michelle du Toit  |  Carol Dowdle
EAP Data and Data Requests Job Description Compiler
Gary Watkins Kim Muir

 

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.

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What is the objective of this article?

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:

  1. 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--
    1. demographic profile of the national and regional economically active population;
    2. pool of suitably qualified people from designated groups from which the employer may reasonably be expected to promote or appoint employees;
    3. economic and financial factors relevant to the sector in which the employer operates;
    4. present and anticipated economic and financial circumstances of the employer; and
    5. the number of present and planned vacancies that exist in the various categories and levels, and the employer's labour turnover;
  2. progress made in implementing employment equity by other designated employers operating under comparable circumstances and within the same sector;
  3. reasonable efforts made by a designated employer to implement its employment equity plan;
  4. the extent to which the designated employer has made progress in eliminating employment barriers that adversely affect people from designated groups; and
  5. 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:

  1. The number of African, Indian and Coloured in the graduate pool needs to be improved dramatically;

  2. 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;

  3. 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);

  4. 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".

  5. 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:

  • Top Management

  • Senior Management

  • Professionally qualified, experienced specialists, mid-management

  • 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;

There are of course organisations which have understood the underlying constraints in the labour market and through extraordinary leadership have managed to transform their workforces (see Moving from pure regulatory compliance to a culture of voluntary moral compliance by Gary Watkins) in spite of these constraints.

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.

For a discussion on the actual number of CA's being produced by our tertiary institutions each year, see our article "Examining graduation statistics for purposes of setting employment equity numerical goals and targets".

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."

Raw Data used in this article

To request original data sources, please click here.

Data is also available for the period from 1987 to 2008 for all race and gender groups by specific qualifications and subject matter.

 

 

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