South Africa continues to grapple with a persistent unemployment crisis. According to Statistics South Africa (Stats SA), the official unemployment rate rose by 0.8 percentage points to 32.9% in the first quarter of 2024 (Q1:2024), compared to the fourth quarter of 2023 (Q4:2023). This increase brings the total number of unemployed job seekers to 8.2 million. The situation is even more dire when considering the expanded definition of unemployment, which includes those discouraged from seeking work. Under this broader measure, the number of unemployed persons reached 12.1 million in Q1 2024. This underscores the urgent need for effective interventions and highlights the critical importance of enhancing employability through distinctive skills.
At its core, employability encompasses a multifaceted set of skills, knowledge, attitudes and personal attributes that empower individuals to secure employment and grow and thrive in their chosen careers.
Employability is about much more than a course, diploma or degree. While these formal qualifications may provide students with the specific theoretical background and technical skills required by their chosen professions or industries, employers are looking for much more.
Soft skills, effective communication, teamwork, critical thinking, creative thinking, analytical thinking, emotional intelligence and personal qualities like adaptability, resilience and a willingness to learn and grow, are highly sought after by employers today. I believe these soft skills (which I refer to as power skills) are crucial for distinguishing oneself in the job market. They ensure that the youth not only secure employment but also have the foundation to build successful and fulfilling careers.
Industries face enormous odds when trying to find people to employ. The Metal and Engineering Sector, for example, which constitutes 26% of the manufacturing sector and contributes 3.3% directly to South Africa’s gross domestic product (GDP), needs workers with strong STEM (Science, Technology, Engineering and Mathematics) skills. However, South Africa’s education system is not producing enough of these learners.
Grade 12 learners need to have passed maths and science to pursue STEM at the tertiary level, but according to the Department of Higher Education and Training’s 2021 Annual Skills Supply and Demand Report – South Africa ranked last out of 39 countries in these two subjects.
The journey towards employability begins with a strong foundation in basic education. In her 2024/2025 budget speech, Minister of Basic Education Siviwe Gwarube emphasized the need for a curriculum review to address challenges in numeracy and literacy. I believe this is a crucial step towards tackling the issue at its root. Additionally, the Minister has repeatedly cautioned in interviews that Grade 12 results should not be the sole measure of success for our basic education system.
I believe that the true measure of success for our education system as a whole is its capacity to equip youth with the skills and knowledge necessary for meaningful and productive careers that contribute to the economy. This creates a win-win situation, benefiting both individuals and society as a whole.
Skills imbalance, particularly skills mismatch is another factor which contributes to the issue at hand. To bridge the gap between education and industry – tertiary education institutions and industry need to work together and the Government too has a crucial role to play.
In his 2024 Opening of Parliament Address, President Ramaphosa emphasized the urgent need for educational reform to better align with industry requirements, reiterating that skills development is a national priority. He stressed the importance of inclusive economic growth, with a particular focus on empowering the youth. “A demand-led approach to skills development and the expansion of vocational and technical training, as well as post-school institutions are essential to meet the growing economic need for skills”, the President stated.
The severity of the jobs crisis requires a multi-layered response. Increasing the chances of job seekers to find work in the formal economy is one option, another is providing the support to help job seekers create their own jobs by promoting innovation and entrepreneurship.
The May 2024 United Nations Development Programme’s policy brief, ‘Unlocking Financial Inclusion for Small and Medium Enterprises (SME’s) in South Africa’, argues that “access to formal financing such as loans, equity, and overdrafts allows SMEs to expand, acquire assets and create jobs”.
The paper affirms the vital role SMEs play: “According to the National Development Plan (NDP), SMEs play a crucial role in addressing poverty and creating employment. Currently, SMEs contribute 40% to South Africa’s GDP, with the majority (84%) operating in the personal services (such as hairdressing, landscaping and auto repair) or wholesale/retail trade sectors.”
To reap the full value of small businesses in terms of job creation, entrepreneurs need more support. Incubation Hubs (also called business incubators or innovation hubs) can increase the chance of success for SMEs by providing much-needed facilities and support. The funding options, coaching, mentorship, networking and market access provided through these Hubs can ensure that these businesses grow and eventually become employers themselves.
The challenges South Africa faces in terms of the shortage of critical skills, on the one hand, and insufficient job opportunities, on the other, will only get more complex as technological advances, such as generative artificial intelligence (AI), become more commonplace.
I believe that the issue of employability is not merely a goal but a journey – an ongoing commitment to excellence and relevance – in education. This calls upon educators, industry leaders and government to collaborate to ensure that the youth is prepared not just for today’s jobs but for the jobs of tomorrow. Employees too, must also embrace the concept of continuous self-learning to ensure they are not left behind.
Opinion piece by Zizile Lushaba, Human Capital and Skills Development Executive at SEIFSA.
