Sector skills

Skills Development Strategy

Together we are getting the SKILLS DEVELOPMENT show on the road

National Skills Authority & Department of Labour

Why do we need a Skill Strategy?

South Africa is still one of the most divided countries in the world…

Of our 40 million people14 million are economically active

…..

Unemployed4.6 million

Those with formal jobs and income 8 million

Supporting 14 million young and old people and 13 million others who are not economically active

Sme1.4 m


Poverty has a racial and gender face:

Of the 4.6 million unemployed 4.2 million are black and 58% are women


Supporting the 27 million people who are not economically active - majority black

Sme1.4 m


Our population is young and thousands more

school-leavers are looking for jobs every year:School leavers

1999 - 512 000

Unemployed

4.6 million


Supporting the 18 million young people under the age of 20

Sme1.4 m


We need economic

growth & social

development

The unemployed

Those with formal jobs and income

Sme


We need a Skill Strategy

to support Economic and Employment Growth and

Social Development!

The formal sector must grow by becoming more productive, competitive and overall generating more jobs.

The SME sector must grow

Development sector initiatives must support improved subsistence as well as lay the basis for SME and formal sector growth

Economic & employment growth and social development?

Growth in theFormal Sector?

1. Attract new direct investment for new jobs - both South African as well as foreign.

2. Find and exploit new markets and new technologies for new jobs. 3. Promote labour-intensive sectors for more jobs.

4. Increase productivity and competitiveness across the board to secure and expand jobs.

5. Support innovation, research and development as a source of ideas for new jobs.

6. State to stimulate investment by enhancing infrastructure and supporting entrepreneurs.

Skills for growth in theFormal Sector?

Skills must complementthese initiatives &sometimes they can even lead the way …but skills on their own

don’t make jobs.

Knowing HOW TO do something

doesn’t mean you will be able to find a job, find clients,

afford the equipment you

need, or …

even want to!

Skills Development Strategy supports formal sector job growth

Levy / grant system provides incentive for employers to skill workers ...

EnterpriseYea

r 1

0,5%

of pa

yrol

l

SARS

Year 150% grant

Via DoL : 80% to SETASETA

20% to NSF NSF

Skills Development Strategy supports workplace growth strategy

Grant

Skills Plan

Developed by Skills Development

Facilitator and Workplace Skills

Team

Grant is triggered by Skills Plan

Skills Plan is prepared by SDF and SD Team

Skills Development Strategy also supports formal sector employment equity

Skills Plan must support

both

Growth Plan and Equity Plan

Growth Plan

Equity Plan+

Skills for job growth in the SME Sector?

Skills Development initiatives must compliment other support measures:

Micro Credit

Technology support

Business support

Skills Development

Marketing & exports

Job growth in the Development Sector?

Development interventions are those that • improve the quality of life of the poor • secure basic services and infrastructure • lay the basis for rising standards of living over time

through access to new forms of income generation

Initiatives such as:• Integrated Rural Development Strategy• Urban Renewal Strategy• Local Economic Development • Spatial Development Initiatives (linked to formal sector

growth)

Including programmes such as:• Working for water (job creation for environmental

protection)• Community-based public works• Building of houses, access to water, upgrading schools,

roads etc.• SME initiatives linked to local opportunities• Youth Community Service

Skills for job growth in the Development Sector?

Development Project

Project Skills Plan for

development project

Access to National Skills Fund by submission of

Project Skills Plan

administered by Provincial DoL: ESDS officers

Competent people

implement development

project

Skills for access to the LM by the young

School-leaver profileFor 1999

512 000 sat for the matriculation examination49% passed – 240 00012% got exemption – 61 000

So… the rest have no qualifications…Nearly quarter of a million young people in 1 year!

Skills for access to the LM by the young

18(2) Learnerships depend on learners being able to access

relevant work experience

Targets will be set, incentives designed and national campaigns conducted to persuade employers

- be they large or small, public or private –

to provide work experience so

that young people can be assisted

to enter productive employment

National Skills Fund

Funding envelopes:a. Development of learnerships & skills programmesb. Learnershipsc. Skills programmesd. Industry support for new investmente. NSF services

Total projected income: R500 millionR100 m FiscusR160 m Levy incomeR 15 m European Union

Other (Poverty Relief etc)

Skills Development Strategy supports formal sector job growth

Sector Growth Strategy

Including industry policy, sme development and social development initiatives linked to sector

Sector Skills Strategy

Supports sector growth strategy and is responsive to Workplace Skills Strategies

Workplace Skills Plans

Supports workplace growth strategy and is responsive to Sector Skills priorities

Skills development supports quality lifelong learning

ALL Skills Plansprogressively

• Expressed as standards and qualifications

• Quality assured by SETAs and other ETQAs

• Provide learners with nationally accredited certificates, which are industry recognized

• Provide the basis for further career pathing and lifelong learning

SETA functions

1. Develop a sector skills plan2. Implement its sector skills plan by

– Establishing learnerships– Approving workplace skills plans– Allocating grants– Monitoring education and training in its sector

3. Promote learnerships by Identify workplaces for practical work experience Support the development of learning materials Improve the facilitation of learning Assist in learnership agreements / register agreements.

4. Apply to be accredited as ETQA with SAQA 5. Liaise with the NSA and employment services6. Report to the Director General of Labour

Sector Skills Plan

Competitiveness analysis (drivers of change e.g. globalisation, new processes, new products, new markets)

Service improvements for public service in sector Equity and social issues (e.g. existing inequalities, legislation,

government policy) Current skills profile and skills supply structure Desired future industry strategy and objectives Sector Plan actions – individuals, companies, SETA, education

and training providers

• Manpower Training Act

• Guidance and Placement Act

• Skills Development Act

• Skills Development Levies Act

• Infrastructure and systems• Institutions• Capacity building (HRD)

Project 1: Capacity of DoL developed (PMU).

Project 2: Information systems for strategic planning developed and operationalised.

Project 3: National learnership and skills programmes designed and implemented

Project 4: National in-service training system developed and implemented.

Project 5: Institutional capacity development for stakeholders established.

Project 6: National funding system established.

Project 7: Education and Training Quality Assurers (ETQA) supported.

LMSDP: EXPECTED OUTCOMES

Project 8 : Provincial Implementation.

(Youth, SDIs and Social Plan).

Project 9: Effective Public/Private Partnerships established for the

effective delivery of ESDS through a regulatory framework.

Project 10: SDS Capacity building framework and programme

established

Project 11: Designated Groups

Project 12: Restructuring of Indlela

The National Skills Authority

The National Skills Strategy Steering

Committee

The National Skills Strategy Executive

Committee

The Minister of Labour

8

Provincial imple-

mentation

Project Steering

Committee

7

ETQAs

Project Steering

Committee

Capacityof

DoL

Project Steering

Committee

1

StrategicInfo

System

2

Project Steering

Committee

Institu-tional

capacity

5

Project Steering

Committee

In-service training

4

Project Steering

Committee

3

Project Steering

Committee

Funding systems

6

Project Steering

Committee

11

DesignatedGroups

10

SDS CapacityBuilding

Project Steering

Committee

Project Steering

Committee

9

Project Steering

Committee

Public/Private

Partnerships established

Learner-ships & Skills Programmes

The PMU

SA ProjectManager

EU Team Leader EU Assistant

Team Leader

EU LTConsultants

EU STConsultantsPSC

Secretary

FinancialController

Project Co-ordinator

Project Steering Committees

SA ProjectManager

EU Team Leader

NSArepresentatives

PSC Secretary

SETArepresentatives

Project Co-ordinator

Other NSA approved

representative

DANIDA NetherlandsGTZ Irish Aid

US Aid SwissAustralia Norway

EU

Skills Strategy for the NATIONE T

Q A

U R

I G

T E

Y T

National Skills

Development Strategy

Sector Skills Plan

Provincial Skills Plan

Workplace Skills Plan

Project Skills Plan