Dismantling labour-law barriers to jobs, scrapping the bureaucratic Sector Education and Training Authority (SETA) system, and rethinking the funding model for universities and technical colleges are among key reforms that would help create millions of jobs, and reverse South Africa’s chronic skills shortage.
So says the Institute of Race Relations (IRR) in a new report, Generating Jobs and Skills for Growth and Prosperity, the latest in its Blueprint for Growth series.
In a statement, the IRR says: “In its first 100 days, the Government of National Unity (GNU) has helped strengthen the rand, bring down bond yields, and put South Africa back on the (potential) investment map. But achieving the GNU’s key goals – increasing growth and reducing unemployment – now needs urgent policy reforms.
“Coercive labour laws must be amended to help create millions more jobs. Other policy interventions are needed to resolve the chronic skills shortage limiting employment and productivity.”
Such interventions include scrapping of the bureaucratic Sector Education and Training Authority (SETA) system and rethinking the funding model for both universities and Technical Vocational Education and Training (TVET) colleges.
IRR Head of Policy Research and author of the report, Dr Anthea Jeffery, says: “With 8.4 million South Africans now unemployed, overcoming the joblessness crisis is a political, economic and moral imperative.
“The GNU should roll back labour laws that price the unskilled out of jobs and push up the costs and ‘hassle factor’ in taking on more staff.
“Vested interests will try to stop these reforms, but the task is well within the GNU’s remit and will win it broad support among voters – most of whom have long identified the unemployment crisis as their main concern.”
Overcoming the skills shortage is a complex challenge that needs to be tackled in various spheres: from dysfunctional schools to failing universities, TVET colleges and SETAs.
Says Jeffery: “Often, what is most required is to remove the heavy hand of the state. In addition, though government funding for education and training is vital, this does not mean that an inefficient and often corrupt state must be involved in delivery as well.
“The solution lies largely in tax-funded education vouchers. These go directly to students and their families and follow them to the institutions of their choice. Institutions must then compete for the custom of students by keeping efficiency up and costs down.”
You can read the full report here. You can also watch this recording of yesterday’s webinar discussion on the report between Jeffery and IRR head of strategic communications Hermann Pretorius.
[Image: Karelien Kriel from Pixabay]