Hoosen Rasool Labour Market Information Labour Market

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					  Labour Market Information
Paralysis: an impediment to the
        skills revolution

          2nd Skills Summit

       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
  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
    Weak Labour Market Information System
•   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
    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
    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

•    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
•    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          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 audits          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
demand                 -occupational
               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
•   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

                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
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
US Department of Labour: Examples of quality
       National Master Scarce Skills List 2008

Are the occupations below scarce skills in South Africa ?

     Scarce Skill
     S      Skills                         Q   tit
     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