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EDUCATION, EMPLOYMENT AND SKILLS IN SOUTH AFRICA
Edited by Andre Kraak & Karen Press
HUMAN RESOURCES DEVELOPMENT REVIEW
2008
Free download from www.hsrcpress.ac.za
Published by HSRC Press
Private Bag X9182, Cape Town, 8000, South Africa
www.hsrcpress.ac.za
First published 2008
ISBN 978-0-7969-2203-8
© 2008 Human Sciences Research Council
The views expressed in this publication are those of the
authors. They do not necessarily reflect the views or policies
of the Human Sciences Research Council (‘the Council’)
or indicate that the Council endorses the views of the authors.
In quoting from this publication, readers are advised to
attribute the source of the information to the individual
author concerned and not to the Council.
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Contents
Preface v
Acknowledgements xi
Glossary xiii
Tables and figures xvii
Acronyms and abbreviations xxxiii
INTRODUCTION
1The education–economy relationship in South Africa, 2001–2005 1
Andre Kraak
SECTION ONE: CONTEXT
2Overview of the economy and economic policy 29
Sandy Lowitt and Miriam Altman
3 Employment shifts and the ‘jobless growth’ debate 50
Haroon Bhorat and Morné Oosthuizen
4The social and human development context 69
Ingrid Woolard and Chris Woolard
5The impact of HIV/AIDS 90
Jocelyn Vass
6The informal economy 111
Richard Devey, Likani Lebani, Caroline Skinner and Imraan Valodia
7 Science and technology policy 134
Michael Kahn
SECTION TWO: SUPPLY
8Public expenditure on education 161
Russell Wildeman
9 Early childhood development 185
Linda Biersteker and Andrew Dawes
10 Adult basic education and training 206
Ivor G Baatjes
11 Public schooling 228
Jennifer Shindler
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12 Further education and training colleges 254
Salim Akoojee, Simon McGrath and Mariette Visser
13 Higher education 278
Mignonne Breier and Mahlubi Mabizela
14 Enterprise training 300
Simon McGrath and Andrew Paterson
15 Training in the South African public sector 322
Andrew Paterson
SECTION THREE: HIGH SKILLS AND THE PROFESSIONS
16 High-skill requirements in advanced manufacturing 345
Jo Lorentzen and Angelique Wildschut
17 Financial services professions 365
Elize van Zyl
18 Veterinary skills 388
Andrew Paterson
19 Pharmacists 410
Elsje Hall
20 Social workers 432
Nicci Earle
21 Engineers, technologists and technicians 452
Rènette du Toit and Joan Roodt
SECTION FOUR: INTERMEDIATE SKILLS AND THE MIDDLE OCCUPATIONS
22 Three pathways to intermediate skilling 479
Andre Kraak
23 Intermediate-level workers in the services sector 503
Rènette du Toit
24 The growing skills crisis in the tourism sector 528
Didi Moyle
SECTION FIVE: ENTRY-LEVEL SKILLS
25 Training within the South African national public works programme 555
Anna McCord
Contributors 577
Index 579
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Preface
The Human Resources Development Review 2008 is the second edition in a series of
overviews of human resources development (HRD) published by the Human Sciences
Research Council (HSRC).
The main purpose of the Review is to put in place a significant information infrastructure
for use by the state and HRD researchers across the education, training, science and
technology, industry, employment and labour market policy domains. Information is a
critical prerequisite for effective decision-making in government, but unfortunately it is
extremely difficult for government officials to collect and collate the cross-sectoral data
required for HRD policy-making. Researchers and journalists experience a similar problem
with regard to the scarcity of data on HRD. The HRD Review 2008 aims to fill this gap.
The HSRC’s HRD information infrastructure has two components. The first is the series
of Reviews of HRD in print format. The second is a multifaceted, Internet-based Data
Warehouse providing multi-year data tables extracted from the HRD Reviews, as well as an
easy-to-use search tool. These tables and all the chapters in the HRD Review 2008 can be
downloaded easily and at no cost from this website (see http://hrdwarehouse.hsrc.ac.za).
The HRD Review 2008 is produced by the Research Programme on Education, Science and
Skills Development (ESSD) at the HSRC.
1
The Programme focuses on three major research
areas: the ‘education system’, the ‘national system of innovation’ and the ‘world of work’.
The distinctiveness of the work done in this Programme resides in its ability to harness
research work at the interface of these three key social domains, to produce comprehensive,
integrated and holistic analyses of the pathways of learners through schooling, further and
higher education into the labour market and national system of innovation. The HRD
Review series is the flagship project of this Programme.
Conception of HRD
An important conceptual distinction shaping the content of the HRD Review 2003 was its
definition of skills, in particular, its categorisation of skills into three distinct bands: high
skills, intermediate skills and entry-level skills. These skill bands can be represented in terms
of the National Qualifications Framework (NQF) as shown in the table on page vi.
The distinctions between these levels are crucial for three reasons. Firstly, as was pointed
out in the HRD Review 2003,much of the literature on globalisation and the ‘knowledge
economy’ exaggerates the extent of the transition to a new social order in which high skills
are the prerequisites for participation in the new economy. The diffusion of the new high-
skill production techniques associated with the knowledge economy has in fact been far
more uneven than acknowledged in the international literature. It does not totally displace
old forms of social and economic organisation, with their associated skill needs. Rather, the
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new high-skill sectors coexist alongside older sectors. High skills are not the only skills in
demand in the new economy. Workers with intermediate and entry-level skills continue to
form the largest percentile of employed populations world-wide.
Secondly, there has been a serious neglect of the ongoing importance of intermediate skills
in contemporary economies. Even though structural changes have occurred in the South
African economy over the past three decades towards greater capital- and skills-intensity,
these changes have not dramatically reduced the demand for sufficient numbers of
technically competent operatives, artisans and technicians in the manufacturing sectors of
the economy. Additionally, the biggest structural change, the rapid growth of the services
sector, has also brought with it dramatic increases in the demand for white-collar
intermediate-skilled labour – the clerks, sales and administrative personnel who work the
services economy.
And finally, in an economy characterised by great poverty, unemployment and low levels of
labour absorption, the expansion of entry-level jobs in labour-absorbing sectors is of crucial
importance to South Africa’s future prosperity.
Promotion of HRD across these three skill bands requires a multifaceted strategy. It requires
a range of initiatives aimed at expanding export-oriented, high value-adding manufacturing
production and services provision, particularly via the implementation
of targeted industrial policies in new, globally competitive ‘niche’ areas. Other necessary
measures include: a dramatic improvement in the country’s science base; a reversal in the
high levels of skilled emigration; and an expansion of appropriately trained high-skill
graduates.
Secondly, it requires the promotion of ongoing training activities to support intermediate
skills, for example, apprenticeship training at further education and training (FET) colleges
and technician training at universities of technology. And finally, large-scale job creation
schemes triggered by public sector initiatives are urgently needed to assist with high levels
of unemployment and despondency, especially amongst the youth. Supply-side institutions
HUMAN RESOURCES DEVELOPMENT REVIEW 2008
vi
Three skill bands on the National Qualifications Framework
NQF level Skill band
8 High skill
(higher education degrees and
7 postgraduate qualifications)
6
5 Intermediate skill
(post-matriculation, pre-degree
4 certificates and diplomas)
3 Entry-level skills
(pre-matriculation levels)
2
1
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such as colleges, sector education and training authorities (SETAs) and private sector
training centres have a massive task to accomplish in providing entry-level skills and other
developmental measures in support of such a low-skill, labour-intensive, employment-
creating strategy.
Many chapters in this volume contribute to the development of such a multifaceted skills
strategy. The need for skills development strategies at the high, intermediate and entry levels
is a common refrain throughout the text.
The structure of the Review
The structure of the present volume is shaped by the HRD Review 2003 in two ways.
It continues the comprehensive coverage provided by the HRD Review 2003 as far as is
possible. Many chapters, therefore, are updates of work published in the 2003 edition. More
importantly, many of the chapters in the HRD Review 2008 are strongly influenced by the
three-level conception of skills developed in the 2003 edition.
The Introduction and Section One of the HRD Review 2008 examine the context in which
HRD takes place. Chapters 1–7 provide an overview of the education–economy relationship
in South Africa; the South African economy and economic policy; employment shifts and
the ‘jobless growth’ debate; the social and human development context in which education,
training and employment takes place; the impact of HIV/AIDS on this context; the informal
economy; and science and technology policy.
Chapters 8–15 in Section Two focus on the supply-side provision of education and training.
The focus, ordering and structure of these chapters mirror very closely the format adopted
in the 2003 edition of the Review.Topics included are: public expenditure on education;
early childhood development; adult basic education and training; public schooling; FET
colleges; higher education; enterprise training; and public sector training.
The last 10 chapters, in Sections Three, Four and Five, aim to illuminate the three-way
conception of skills discussed earlier. Chapters are distributed across the following sub-
divisions:
•High skills and the professions (Chapters 16–21)
•Intermediate skills and the middle occupations (Chapters 22–24)
• Entry-level skills (Chapter 25)
These 10 chapters provide comprehensive overviews of several professions (financial
services, veterinarians, pharmacists, social workers and engineers) as well as advanced
manufacturing skills, and para-professions (artisans and technicians) as well as intermediate
workers in the services and tourism sectors. The concluding chapter looks at public sector
initiatives aimed at providing entry-level skills for unemployed workers through the
Expanded Public Works Programme.
Data problems
Even though the HRD Review 2008 has assembled a comprehensive collection of data from
a wide array of reliable sources, certain cautionary comments must be made. Data problems
PREFACE
vii
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are endemic to social science research and to government departments, which are largely
responsible for the production and dissemination of socio-economic data. In the South
African case, Statistics South Africa is the central statistical agency responsible for the
10-yearly Census data and six-monthly Labour Force Survey (LFS) data used widely by
researchers in this edition. These are the most reliable data sets available, but even they
suffer certain limitations, for example, small sample populations which disallow rigorous
‘drilling down’ and disaggregation.
Even more serious problems occur in line-function government departments such as the
Department of Education (DoE), which does not collect administrative data on a systematic
and regular basis in crucial areas such as FET colleges, adult basic education and training
(ABET), and early childhood development (ECD). Chapters on these topics have had to
make do with very old data – 2000 in the case of ECD, 2002 in the case of FET colleges, and
1999 in the case of ABET, with incomplete data sets ever since. Data production in each of
these three cases was outsourced by the DoE to contract research providers; the DoE has no
internal capacity to undertake data collection itself. These data deficiencies do not enable
accurate and confident measurement to be produced by researchers using these data sources.
Similar problems are evident in the Department of Labour (DoL), which appears to have
replaced routine administrative data collection on items such as the number of apprentices
trained per year, with the Performance Indicator results of the National Skills Development
Strategy (NSDS) launched in 2001. The DoL is also heavily reliant on the 23 SETAs for data
collection on the NSDS, and has little power to ensure data integrity and quality in the
production of such SETA data.
Another data issue for readers to note is that there are a few instances in which different
chapter authors have extracted and customised their own tables from large databases
such as the Higher Education Management Information System (HEMIS) or LFS database,
with divergent results. These divergences arise from differing computations during the
customisation process, and not from errors made in the construction of the data tables.
The task of researching off the HEMIS database is complicated further by the fact that it is
retrospectively amended from time to time, as DoE officials audit the enrolment numbers
provided by institutions. Once exact enrolment and graduation numbers are audited, slight
changes in the HEMIS data will inevitably arise. One research account of higher education,
using data extracted on a specific date, may throw up different results to another seemingly
identical effort, because of the time difference in data extraction.
All of these data limitations and restrictions are unfortunate because they make working
with data difficult, and data gaps compromise the value of the research results. Reliable
administrative data are crucial to good, evidence-led research and policy formulation.
It is hoped that one of the effects of the HRD Review series will be to highlight the
importance of reliable data for good government policy-making and, in doing so, to put
the improvement of data production and collection under the spotlight.
The HRD Review 2008 provides the best possible collection of reliable data available in the
cross-sectoral field of HRD. This collection of chapters and its massive assemblage of data
tables will prove invaluable to government officials who are responsible for decision-making
in HRD. It will assist training practitioners in the SETAs and in the private sector with their
HUMAN RESOURCES DEVELOPMENT REVIEW 2008
viii
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responsibilities for delivering relevant and high-quality training. And lastly, the analysis
presented in each of the 25 chapters will be of use to all those academics and postgraduate
students who are studying and researching in the field of South African education and
training.
Andre Kraak and Karen Press
General Editors
Note
1 The HRD Review 2003 was produced by the Research Programme on Human Resources Development
at the HSRC which has subsequently been incorporated within the new research entity, ESSD.
PREFACE
ix
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[...]... Industries Standards Generating Body continuing professional development consumer price index Council for Scientific and Industrial Research Certificate in the Theory of Accounting Department of Arts, Culture, Science and Technology Danish International Development Agency Department of Correctional Services xxxiii HUMAN RESOURCES DEVELOPMENT REVIEW 2008 Free download from www.hsrcpress.ac.za DEAT DFID DG... 351 Percentage share of manufacturing in the South African economy, 1995–2004 353 xxvii HUMAN RESOURCES DEVELOPMENT REVIEW 2008 Table 16.6: Table 16.7: Growth clusters in high-technology export, 1995–2004 354 Average annual percentage growth of individual high-technology exports, 1995–2004 355 Table 16.8: Critical review of Sector Skills Plans 357 Table 16.9: Selected categories’ percentage share of... School of Education, University of Cape Town xi HUMAN RESOURCES DEVELOPMENT REVIEW 2008 Sean Archer, Associate Professor of Economics, University of Cape Town Chris Rogerson, Professor, School of Geography, Archaeology and Environmental Studies, University of the Witwatersrand Peter Barron, Specialist Technical Advisor, Health Systems Trust Internal reviewers Andrew Paterson, Research Director, Research... xxxv HUMAN RESOURCES DEVELOPMENT REVIEW 2008 Free download from www.hsrcpress.ac.za NLRD NQF NRF NSDS NSF NSFAS NSF: PALC NSI NSS NT OECD OHS PAHC PALC PBMR PDE PMTCT POS PPI PPP PSC R&D RAU RDP S&T SAACE SABCOHA SACMEQ SACSSP SADC SADSAWU SAICA SAICE SAIPA SAIRR SANLI SAPC SAQA xxxvi National Learners’ Records Database National Qualifications Framework National Research Foundation National Skills Development. .. (R’000), by provincial education department, 2001/02–2004/05 169 The percentage of ECD sites that fall below three national infrastructure index poverty lines, by province, 2001 170 xxi HUMAN RESOURCES DEVELOPMENT REVIEW 2008 Table 8.7: Table 8.8: Table 8.9: Table 8.10: Table 8.11: Figure 8.1: Figure 8.2: Free download from www.hsrcpress.ac.za Figure 8.3: Figure 8.4: Figure 8.5: Figure 8.6: Figure 8.7:... public and independent school sectors, by phase and gender, 2001 235 Percentage of children in the population enrolled in school and not in school, by age and province, 2001 236 xxiii HUMAN RESOURCES DEVELOPMENT REVIEW 2008 Table 11.9: Table 11.10: Table 11.11: Table 11.12: Table 11.13: Table 11.14: Table 11.15: Free download from www.hsrcpress.ac.za Table 11.16: Table 11.17: Table 11.18: Table 11.19:... type of institution and gender, 2002–2004 288 Benchmarks for graduation rates (percentage), 2001 and 2004 288 Graduation rates (percentage), by type of qualification, 2002–2004 289 xxv HUMAN RESOURCES DEVELOPMENT REVIEW 2008 Table 13.10: Success rates (percentage) of contact students at all public higher education institutions, by race, 2002–2004 290 Table 13.11: New higher education institutional types,... the number of learners enrolled at a given level of education, regardless of age, by the population of the age group which officially corresponds to the given level of education xiii HUMAN RESOURCES DEVELOPMENT REVIEW 2008 Headcount This refers to the number of individual students in an education institution Headcounts include all enrolments regardless of the length of the course or programme Consequently,... welfare activities, per 100 000 of the population, by province, 2004 438 New demand for social workers due to population growth to retain a ratio of 23.6 per 100 000, 2005–2015 440 xxix HUMAN RESOURCES DEVELOPMENT REVIEW 2008 Table 20.6: Table 20.7: Table 20.8: Table 20.9: Table 20.10: Table 20.11: Free download from www.hsrcpress.ac.za Table 20.12: Table 20.13: Table 20.14: Replacement demand for social... 513 Employment across the services sub-sectors, by race and occupational levels, 2004 514 Employment across the services sub-sectors, by gender and occupational levels, 2004 518 xxxi HUMAN RESOURCES DEVELOPMENT REVIEW 2008 Table 23.8: Distribution of employee educational qualifications across services sector sub-sectors, 2004 521 Table 23.9: Distribution of employee educational qualifications within . www.hsrcpress.ac.za
Preface
The Human Resources Development Review 2008 is the second edition in a series of
overviews of human resources development (HRD) published by the Human. SKILLS IN SOUTH AFRICA
Edited by Andre Kraak & Karen Press
HUMAN RESOURCES DEVELOPMENT REVIEW
2008
Free download from www.hsrcpress.ac.za
Published by HSRC
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