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… Those Of our 40 million people with 14 million are economically active ….. formal jobs and Sme income 1.4 m Unemployed 8 million 4.6 million Supporting 14 million young and old people and 13 million others who are not economically active
Why do we need a Skill Strategy? Poverty has a racial and gender face: Those with formal jobs and Sme income 1.4 m Of the 4.6 million unemployed 4.2 million 8 million are black and 58% are women Supporting the 27 million people who are not economically active - majority black
Why do we need a Skill Strategy? Our population is young and thousands more school-leavers are looking for jobs every year: School leavers Those 1999 - 512 000 with formal jobs and Sme income 1.4 m Unemployed 8 million 4.6 million Supporting the 18 million young people under the age of 20
Why do we need a Skill Strategy? We need economic growth & social Those development with formal Sme jobs and income The unemployed
Why do we need a Skill Strategy?We need a Skill Strategyto support Economic and Employment Growth and Social Development!
Economic & employment growth and socialdevelopment?The formal sector must grow bybecoming more productive, competitive andoverall generating more jobs.The SME sector must growDevelopment sector initiatives mustsupport improved subsistence as well as laythe basis for SME and formal sector growth
Growth in the Formal 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 the Formal Sector?Skills must complementthese initiatives & Knowing HOW TOsometimes they do something doesn’t mean you will be ablecan even to find a job, findlead the way … clients, afford the equipment you need,but skills or …on their own even want to!don’t make jobs.
Skills Development Strategy supports formal sector job growthLevy / grant system provides incentive for employers to skill workers ... Enterprise Via DoL : 80% to SETA SARS SETA 20% to NSF NSF
Skills Development Strategy supports workplacegrowth strategyGrant Grant is triggered by Skills Plan Skills Plan Developed by Skills Development Skills Plan is prepared by Facilitator and SDF and SD Team Workplace Skills Team
Skills Development Strategy also supports formal sector employment equityGrowth Plan + Equity Plan Skills Plan must support both Growth Plan and Equity Plan
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
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 generationInitiatives 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?Access to National Skills Fund by submission of Project Skills Planadministered by Provincial DoL: ESDS officers Project Skills Competent people Plan for implement development development project project Development Project
Skills for access to the LM by theyoung 18(2) Learnerships depend on learners being able to access relevant work experienceTargets 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 FundFunding envelopes:a. Development of learnerships & skills programmesb. Learnershipsc. Skills programmesd. Industry support for new investmente. NSF servicesTotal projected income: R500 million R100 m Fiscus R160 m Levy income R 15 m European Union Other (Poverty Relief etc)
Skills development supports qualitylifelong 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
SETA functions1. 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 sector3. 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 SAQA5. 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 • SkillsTraining Act Development Act• Guidance and • SkillsPlacement Act Development Levies Act • Infrastructure and systems • Institutions • Capacity building (HRD)
LMSDP: EXPECTED OUTCOMESProject 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 implementedProject 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.
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 establishedProject 11: Designated GroupsProject 12: Restructuring of Indlela
The Minister of Labour The National Skills Authority The National Skills Strategy Steering Committee The National Skills Strategy Executive Committee The PMU 1 2 3 4 5 6 7 8 9 10 11 Project Project Project Project Project Project Project Project Project Steering Project Project Steering Steering Steering Steering Steering Steering Steering Steering Committee Steering SteeringCommittee Committee Committee Committee Committee Committee Committee Committee Committee Committee Learner Public/ In-service Institu- Provincial SDS Strategic -ships & Funding ETQAs Private Capacity training tional imple- Capacity Designated Info Skills systems Partnerships of capacity mentation Building Groups System Programme established DoL s
SA Project Manager EU Team Leader EU Assistant Team Leader ProjectCo-ordinator EU LT Consultants Financial Controller EU ST PSC Consultants Secretary
SA Project Manager EU Team NSA Project Leader Steering Committees representatives Other NSA Project approvedCo-ordinator representative SETA PSC representatives Secretary
EU GTZ DANIDA Netherlands Irish AidAustralia US Aid Swiss Norway
Skills Strategy for the NATION National Skills E T Development Strategy Q A Sector Skills Plan U R Provincial Skills Plan I G T E Workplace Skills Plan Y T Project Skills Plan