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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
Why do we need a Skill Strategy?
Poverty has a racial and gender face:
Of the 4.6 million unemployed 4.2 million are black and 58% are women
Those with formal jobs and income 8 million
Supporting the 27 million people who are not economically active - majority black
Sme1.4 m
Why do we need a Skill Strategy?
Our population is young and thousands more
school-leavers are looking for jobs every year:School leavers
1999 - 512 000
Unemployed
4.6 million
Those with formal jobs and income 8 million
Supporting the 18 million young people under the age of 20
Sme1.4 m
Why do we need a Skill Strategy?
We need economic
growth & social
development
The unemployed
Those with formal jobs and income
Sme
Why do we need a Skill Strategy?
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