Skills Development Strategy

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Skills Development Strategy
Together we are getting the SKILLS DEVELOPMENT
show on the road National Skills Authority
Department of Labour
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Why do we need a Skill Strategy?
South Africa is still one of the most divided
countries in the world Of our 40 million
people 14 million are economically active ..
Those with formal jobs and income 8 million
Sme 1.4 m
Unemployed 4.6 million
Supporting 14 million young and old people and 13
million others who are not economically active
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Why do we need a Skill Strategy?
Poverty has a racial and gender face
Those with formal jobs and income 8 million
Sme 1.4 m
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
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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
Those with formal jobs and income 8 million
Sme 1.4 m
Unemployed 4.6 million
Supporting the 18 million young people under the
age of 20
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Why do we need a Skill Strategy?
We need economic growth social development
Those with formal jobs and income
Sme
The unemployed
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Why do we need a Skill Strategy?
We need a Skill Strategy to support Economic and
Employment Growth and Social Development!
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Economic 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

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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.
• Support innovation, research and development as a
  source of ideas for new jobs.
• State to stimulate investment by enhancing
  infrastructure and supporting entrepreneurs.

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Skills for growth in theFormal Sector?
Skills must complement these initiatives
sometimes they can even lead the way but
skills on their own dont make jobs.
Knowing HOW TO do something doesnt mean you will
be able to find a job, find clients, afford the
equipment you need, or even want to!
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Skills Development Strategy supports formal
sector job growth

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

Enterprise
Year 1 50 grant
Year 1 0,5 of payroll
Via DoL 80 to SETA
SETA
SARS
NSF
20 to NSF
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Skills Development Strategy supports workplace
growth strategy
Grant
Grant is triggered by Skills Plan
Skills Plan
Developed by Skills Development Facilitator and
Workplace Skills Team
Skills Plan is prepared by SDF and SD Team
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Skills Development Strategy also supports formal
sector employment equity
Growth Plan

Equity Plan

• Skills Plan must support
• both
• Growth Plan and Equity Plan

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Skills for job growth in the SME Sector?

• Skills Development initiatives must compliment
  other support measures

Micro Credit
Technology support
Business support
Marketing exports
Skills Development
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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

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Skills for job growth in the Development Sector?
Access to National Skills Fund by submission of
Project Skills Plan administered by Provincial
DoL ESDS officers
Project Skills Plan for development project
Competent people implement development project
Development Project
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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

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National Skills Fund

• Funding envelopes
• Development of learnerships skills programmes
• Learnerships
• Skills programmes
• Industry support for new investment
• NSF services
• Total projected income R500 million
• R100 m Fiscus
• R160 m Levy income
• R 15 m European Union
• Other (Poverty Relief etc)

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Skills development supports quality lifelong
learning

• ALL Skills Plans
• progressively

• 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

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SETA functions

• Develop a sector skills plan
• Implement its sector skills plan by
• Establishing learnerships
• Approving workplace skills plans
• Allocating grants
• Monitoring education and training in its sector
• 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.
• Apply to be accredited as ETQA with SAQA
• Liaise with the NSA and employment services
• Report to the Director General of Labour

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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

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Why the LMSDP?

• Skills Development Act
• Skills Development Levies Act

• Manpower Training Act
• Guidance and Placement Act

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

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LMSDP EXPECTED OUTCOMES
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. Pro
ject 5 Institutional capacity development for
stakeholders established. Project 6
National funding system established. Project 7
Education and Training Quality Assurers (ETQA)
supported.
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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
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The Minister of Labour
The National Skills Authority
The National Skills Strategy Steering Committee
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2
5
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3
6
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11
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Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Project Steering Committee
Public/ Private Partnerships established
Learner -ships Skills Programmes
Institu-tional capacity
In-service training
SDS Capacity Building
Strategic Info System
Funding systems
ETQAs
Designated Groups
Capacity of DoL
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SA Project Manager
EU Team Leader
EU Assistant Team Leader
PROJECT TEAM
EU LT Consultants
Financial Controller
EU ST Consultants
PSC Secretary
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Project Steering Committees
SA Project Manager
EU Team Leader
NSA representatives
PROJECT STEERING COMMITTEE

• Other NSA approved
• representative

PSC Secretary
SETA representatives
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LMSDP
EU
DANIDA
Netherlands
GTZ
Irish Aid
US Aid
Swiss
Australia
Norway
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Skills Strategy for the NATION

National Skills Development Strategy
E T Q A U R I G T E Y T
Sector Skills Plan Provincial Skills Plan
Workplace Skills Plan Project Skills Plan