Labour Market Information Paralysis: an impediment to the skills revolution 2nd Skills Summit Johannesburg Prof Hoosen Rasool Management College of Southern Africa Joint Policy Statement: DoL/DoE The SETA functions will change significantly from the current ones: • SETA functions in respect of education training and education, learning will be more focused on research, analysis, monitoring, evaluation and impact assessment as well as providing support to learners and workplaces offering QCTO qualifications • The Setas will research and analyse education, training and skills development needs in their sectors d develop sector needs analysis which will b and d l t d l i hi h ill be submitted to the Department of Labour • The research will cover national, provincial, local and workplace needs k l d • Setas will need to provide appropriate sectoral foresight studies for education, training and skills development to ensure grants are used effectively and efficiently. Weak Labour Market Information System (LMIS) • There is very poor provision of LMI on the state of skills in the SA • It is very difficult to establish accurate linkages between skills mismatch, supply and demand thus further contributing to a skills mismatch unemployment and underemployment • Information asymmetries are sending wrong signals to learners, firms and policy-makers • Th diagnostic capacity of th D L and S t t analyse and The di ti it f the DoL d Setas to l d predict skills supply and demand is weak • Occupational statistics are hardly recorded, except in the case of yp , g statutory professions such as doctors, engineers, q y , quantity surveyors, charted accountants, teachers, nurses and lawyers • Occupational information is in the form of very broad occupational levels such as senior managers, professional, technicians, clerks, labourers, etc. labourers etc • Poor diagnostic capacity leads to over and under-investments in education and training • The nature, extent and intensity of skills shortages in SA are not l l identifiable clearly id tifi bl Misconceptions One of the major misconceptions is that the only way to address skills shortages in the labour market is through investment in education and training. Additionally, there is a range of other ways by hi h h labour market adjusts to skills shortages. Th b which the l b k dj kill h These include: • Increasing wages; • Recruiting more widely; • Adopting a more expansive approach to skills immigration; • over time; Increasing over-time; • Altering production methods to reduce the need for skills in short supply; • Changing conditions of employment; • Utilizing skilled employees more productively; • Substituting capital for skills in short supply; • Changing the product mix; and • t t t th contract out the workk Labour Market Data Sources -wage differentials -household surveys -enrolment data -employment levels -labour force surveys -tracer studies -overtime patterns -sector strategies -graduate retrenchments -retrenchments new -new investor activity placements -collective wage -firm-level studies -costs of training agreements -employer surveys programmes -job vacancies -establishment -training provision -employment trends surveys -profession specific -productivity data studies -capital substitution skills -skills audits imports/exports -imports/exports -UIF data -new establishments -conditions of -consumer patterns employment -industry changes -migration data i ti d t -technological t h l i l -employment equity changes reports -recruitment -labour supply and pp y practices p demand -occupational projections Key Questions for Setas • H How h have occupational patterns and skill structures changed i ti l tt d kill t t h d in response to shifts in the industrial composition, technological advances and other labour market changes? • y p What are likely to be the skill areas to experience an increase or decrease in importance and what are the implications for the design and content of training and retraining programmes? • How have graduates fared in the labour market and what is the implication of their experiences for future programming of training courses? • What is the likely impact of proposed policy measures on job creation, enterprise restructuring, specific target groups and on training programmes? • How can education and training systems be fine-tuned to produce a workforce flexible enough to meet the demands of an increasingly dynamic work environment? • What are the future sills requirements of the economy ? • What is the match between skills demand met by supply ? • How effective are supply-side measures in addressing skills shortages ? Labour Market Analysis (LMA) Analysis of LM Functioning and Processes Labour Market Analysis Evaluation of LM Policies Labour Market Signaling and Programmes Labour Market Signaling Conveys warnings of new developments and patterns in the LM. It is a vital output of LMI for policy-making and those with immediate operational and decision-making responsibilities p g p Analysis of LM Functioning and Processes I l i d th h to Involves in-depth research t reveal th d l the dynamics and f i d functioning of ti i f the LM Monitoring and Evaluation of LM Policies and Programmes Impact of LM policies and programmes on target groups and the I t f li i d t t d th economy. M&E identifies deficiencies and constraints in the LM, provides feedback for improving implementation and leads to and adjustment of policies and programmes US Department of Labour: Examples of quality LMI US Department of Labour: Examples of quality LMI National Master Scarce Skills List 2008 Are the occupations below scarce skills in South Africa ? Scarce Skill S Skills Q tit Quantity Office administrators 540 Photographers 75 General Clerks 5 625 Keyboard operators 80 Receptionists 745 Mail sorters 800 Textile and laundry workers 2000 Produce packers and handlers 310 Secretaries 665 Labour Market Research Capacity-Building Model THANK YOU !