Skills Development Strategy Together we are getting the SKILLS DEVELOPMENT show on the road National Skills Authority & Department of Labour

South Africa is still one of the most divided countries in the world… 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

Poverty has a racial and gender face: 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

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

We need economic growth & social development Why do we need a Skill Strategy? We need economic growth & social development Those with formal jobs and income Sme The unemployed

Why do we need a Skill Strategy? to support Economic and Employment Growth and Social Development!

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

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

Skills for growth in the Formal Sector? Skills must complement these 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 ... Enterprise 0,5% of payroll Year 1 50% grant Year 1 Via DoL : 80% to SETA SETA SARS NSF 20% to NSF

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

Skills Development Strategy also supports formal sector employment equity Growth 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 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? 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

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: 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)

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

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

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

Why the LMSDP? Infrastructure and systems Institutions Skills Development Act Skills Development Levies Act Manpower Training Act Guidance and Placement Act Infrastructure and systems Institutions Capacity building (HRD)

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. 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 established Project 11: Designated Groups Project 12: Restructuring of Indlela

Institu-tional capacity 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 Provincial imple- mentation 9 10 11 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 Learner -ships & Skills Programmes Public/ Private Partnerships established In-service training Institu-tional capacity SDS Capacity Building Strategic Info System Funding systems ETQAs Capacity of DoL Designated Groups

PROJECT TEAM SA Project Manager EU Team Leader EU Assistant Co-ordinator PROJECT TEAM EU LT Consultants Financial Controller EU ST Consultants PSC Secretary

Project Steering Committees SA Project Manager Project Steering Committees EU Team Leader NSA representatives PROJECT STEERING COMMITTEE Project Co-ordinator Other NSA approved representative SETA representatives PSC Secretary

LMSDP EU GTZ DANIDA Netherlands Irish Aid Australia US Aid Swiss Norway

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