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Is there a demand for skilled workers in South Africa?


When my employer informed me in 2012 of my dismissal, they said I would easily find work because my skills were in "demand”. I wondered in which universe they lived. It’s common knowledge, except to those who live hermetically sheltered lives, that it’s difficult for most people in South Africa to find work, except uniquely specialised professionals, affirmative action candidates and cronies of politicians.

The media continuously reports people in high places who have fake qualifications, particularly in the public sector – teachers to chief executives - but in many cases earn exorbitant salaries. How is this possible?

For my discipline, I hold an honours degree in economics with passes in management accounting and auditing, and over ten years experience. For the industry sector I’ve chosen to work in I hold a master’s degree in urban management. These qualify me as an expert or specialist in urban economics.

Business organisations, government and politicians keep saying there is a shortage of skills. It’s agreed South Africa has a shortage of gross numbers of so-called economic skills – engineering, accounting, management, IT, artisans and so on. However, these prophets don’t provide evidence that show, at micro level, which professions and sectors are affected today. So year after year, decade after decade, we hear about the alleged shortage but are no wiser how to ameliorate the “problem”.

One solution they, e.g. Western Cape economic opportunities minister Alan Winde, propose is import skills and ease visa requirements for foreigners holding these skills. But they never explain how it’s a sustainable solution for employment creation and skills development for citizens of the country and how it will benefit job seekers.

My former employer dismissed me because I was allegedly overqualified. I hold scarce skills but can’t find work. While I would not presume to extrapolate nationally based on my own example, I suggest the “shortage”, which is a valid concern where it does occur, is alarmist and overstated. The problem may not be a shortage of skills per se.

However, there are other explanations – legislative affirmative action aka employment equity requirements, employers’ endogenous prejudices and preferences, lack of work or a combination of them.

Consider the following cases of people I know. Two chartered accountants were unable to find work in Cape Town. Then there are the three accountants who easily found work abroad – two in London and one in New York – at the head offices of multi-billion dollar firms after struggling to find similar jobs in Cape Town, allegedly because they lacked appropriate skills. One returned home and, ironically, worked as consultant at the firm that previously rejected her application. Another struggled to find work.


A licensed electrical contractor struggled to find work. He eventually found a job for which he is overqualified. It has been confirmed by qualified, licenced artisans that employers prefer to employ cheap “operators” – tradesmen who go a short courses (they have not passed national apprenticeships and tests). They describe the decline in standards of building work as a result of inadequately trained workmen.

Apprenticeships and trade testing were abandoned by the post-1994 ANC government to open the trades to blacks who had poorer education. The repalcement Setas - Sector Education Training Authorities - funded by a levy on employers, about R10 billion a year, have failed to provide credible skills, is open to abuse and corruption and is merely another tax and central control of the workplace. And yet government supports state-paid internships – kind of like Setas – for young job seekers despite research findings about the benefits being inconclusive.

If the above are within my personal knowledge, how many other cases around the country are there of scarce skills not being utilised?

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