An economic analysis of the skills shortage problem in South Africa

M.Comm. === South Africa has experienced a long period of high unemployment. While the economy has achieved relatively higher GDP growth rates in the recent past, unfortunately not as many jobs have been created. This is because of, amongst other constraints, the skills shortage experienced. This sh...

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Published: 2010
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Online Access:http://hdl.handle.net/10210/3426
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Summary:M.Comm. === South Africa has experienced a long period of high unemployment. While the economy has achieved relatively higher GDP growth rates in the recent past, unfortunately not as many jobs have been created. This is because of, amongst other constraints, the skills shortage experienced. This shortage of skills is not solely the result of the emigration of professionals since the inception of the new political dispensation in 1994. This paper investigated the economic sectors showing high growth, with a view of identifying the sectors that can be promoted for high investment and hence the creation of employment for the country’s labour force. The secondary and the tertiary sectors have been found to contributing more to the country’s GDP growth and could create more employment opportunities if promoted by more investment. However, the unemployment experienced is mainly structural in nature and the country should concentrate on human capital development and skills development to reduce it. The education of the labour force in South Africa has been found to be concentrated in the secondary level. This has raised questions as to the ability of the country’s education system to fulfil its role of empowering the labour force. More than ten years into democracy, blacks are the most disadvantaged population group regarding the levels of appropriate educational qualifications making them contribute the most to the unemployed labour force.