South Africa’s Employment and Labour Minister, Nomakhosazana Meth, has recently highlighted the most critical skills currently needed within the country. These areas of demand have been identified by the Department of Higher Education and Training (DHET), which is actively working to steer students into relevant study programmes aligned with these national workforce priorities.
Key Takeaways
- Severe Skills Shortages Across Key Sectors: South Africa faces critical shortages in specialised fields such as healthcare, engineering, ICT, education, and technical trades, which are vital for economic growth and service delivery.
- High Unemployment and Skills Mismatch: With an official unemployment rate of 32.9%, the country also struggles with a mismatch between graduates’ qualifications and actual job market needs, limiting employment absorption.
- Government Programmes Show Uneven Placement Results: Over 26,600 people trained through government initiatives have been placed in jobs, but success rates vary widely between sectors, and gaps in post-training accountability remain.
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Skills Development as a Strategic Response to Unemployment
Minister Meth has consistently championed the importance of skills development as a key strategic intervention to address the country’s persistently high unemployment rate. She has emphasised that one of the most practical ways to tackle joblessness is by equipping citizens with the skills that are actually needed in the job market. In her ongoing public addresses, she has stressed that unemployment will not be resolved through job creation alone, but through alignment between education systems, training initiatives, and the labour market’s actual demands.
Alarming Unemployment Figures Across the Nation
According to the most recent official statistics, South Africa’s unemployment rate stands at 32.9 percent. This figure translates to nearly one in every three working-age adults being unemployed. Although some analysts suggest that the actual figure may be lower, potentially around 10 percent when factoring in informal and unregistered work, Statistics South Africa (Stats SA) has maintained that the official rate remains accurate based on their comprehensive methodology.
The 32.9 percent statistic remains one of the highest unemployment rates globally, highlighting the magnitude of South Africa’s labour market crisis and its potential implications on social stability, poverty, and economic stagnation.
Challenges of Skills Mismatch and Low Absorption
In addition to the high rate of unemployment, South Africa also faces structural problems within the labour market. These include a significant mismatch between the skills that school leavers and graduates acquire and the actual needs of employers. Furthermore, there are low absorption rates, meaning that even those who receive training or education often struggle to secure relevant employment afterwards. This persistent disconnect is reflected in the country’s rising number of unemployed graduates, particularly in sectors where automation, green economy expansion, and digitalisation require highly specialised expertise.
During a recent Parliamentary question-and-answer session, Member of Parliament for the MK Party, Lehlohonolo Selepe, raised a question to the department regarding which specific skills are most needed in the country. He also asked whether government-sponsored training programmes were succeeding in helping graduates transition into employment. The inquiry underscores growing political and public concern over whether government initiatives are translating into tangible employment opportunities or merely producing qualifications that hold little market value.
DHET Responsible for Skills Identification
In response, Minister Meth clarified that the task of determining which skills are critically needed falls outside the mandate of her department. Instead, this responsibility lies with the Department of Higher Education and Training, which oversees the assessment, review, and publication of the National List of Occupations in High Demand (OIHD).
The DHET’s role is central to aligning academic outputs with industry needs, yet critics argue that faster updates and real-time tracking of skills demand are urgently needed to keep up with evolving labour trends.
She further explained that the Department of Employment and Labour does not offer or design training in these areas. This role is assigned to the Department of Higher Education and Training and the various Sector Education and Training Authorities (SETAs), which are mandated to develop and implement industry-specific skills programmes. Despite this division of responsibility, industry bodies have called for greater coordination between departments to prevent duplication, inefficiencies, and missed opportunities in skills planning.
Labour Department’s Role in Monitoring and Data Tracking
Despite not being directly involved in education and training, Minister Meth stated that her department plays an important role in tracking labour market data. Through its Employment Services South Africa (ESSA) database, the department has access to real-time information about which skills and occupations are in highest demand across the country. This system is often cited as a valuable tool for identifying pressure points in the economy, yet concerns remain about its underutilisation and limited public visibility.
Overview of Critical Skills Needed in South Africa
Although the full official list contains hundreds of occupations, Minister Meth presented an outline of the most in-demand skills across six key economic sectors. This overview was based on the current ESSA database insights. These occupations not only reflect gaps in the workforce but also highlight key growth sectors expected to shape the future of South Africa’s economy:
| Sector | Critical Skills Needed |
|---|---|
| Science and Health Sector | – Medical professionals in specialist fields such as psychiatry, neurology, oncology, paediatrics, and pathology – Dental experts in prosthodontics, oral medicine, and maxillofacial surgery – Specialist nursing professionals in perioperative, emergency, mental health fields, and nurse education – Veterinary occupations including veterinarians and veterinary nurses – Public health experts and administrators |
| Information and Communication Technology & Engineering | – Software developers and application programmers – Cybersecurity and ICT security specialists – Network analysts and systems engineers – Engineers in mechanical, electrical, civil, and mining disciplines – Mechatronics and electronics technicians – Naval architects and aeronautical engineers |
| Business and Finance | – Actuarial professionals – Investment analysts and asset managers – Corporate treasurers responsible for financial strategy – Auditors operating internally and externally – Professionals skilled in market research and consumer insights – Supply chain coordinators and distribution managers |
| Education and Research | – University-level lecturers across disciplines – Teachers for the senior and Further Education and Training (FET) phases, covering grades 8 to 12 – Research and development managers overseeing innovation and product research |
| Environmental and Spatial Planning | – Urban and regional planners managing land use – Environmental scientists and environmental programme managers – Climate change scientists working on adaptation strategies – Oceanographers and hydrologists monitoring water systems |
| Technical and Trade Occupations | – Millwrights involved in industrial maintenance – Technicians specialising in lift maintenance – Metal machinists operating precision tools – Instrumentation and control technicians – Technicians skilled in air-conditioning and refrigeration repair |
Accessing the Complete List of High-Demand Occupations
The Minister noted that the full list of occupations in high demand is published by the DHET. As of the 2024 update, this document identifies 350 different occupations deemed essential for national development and economic growth. The list was compiled using data gathered through an online survey distributed via email and LinkedIn, targeting employers and recruitment professionals.
The growing reliance on digital platforms for data collection reflects efforts to modernise policymaking, though experts caution that broader stakeholder input is still needed.
Methodology for Identifying Skills Demand
Employers who participated in the survey were asked to indicate which occupations they expected to recruit for over a three-year period. Two key metrics were used to generate demand scores for each occupation: the number of times an occupation was mentioned and the average level of certainty assigned to those predictions. These scores were used to populate the official list. This data-driven approach aims to ensure that resources are directed to areas with verified market need, though it is only as reliable as the accuracy and diversity of respondents.
Progress in Worker Placement After Training
On the matter of job placement following training, Minister Meth revealed that according to ESSA data, over 26,600 individuals who had completed government-sponsored training programmes were successfully placed in employment. The breakdown of these placements by sector is as follows:
| Sector | Number of Placements |
|---|---|
| Services sector | 130 placements |
| Public Sector | 194 placements |
| Safety and Security | 5,120 placements |
| Agriculture | 6,733 placements |
| Manufacturing | 142 placements |
| Mining | 3 placements |
| Media and Publishing | 871 placements |
| Local Government | 2,350 placements |
| Insurance | 109 placements |
| Information Systems | 31 placements |
| Forestry | 124 placements |
| Education | 2,731 placements |
| Construction | 7,982 placements |
| Banking | 50 placements |
| Financial Services | 66 placements |
Although these figures are encouraging, the stark contrast between sectors, such as mining versus construction, suggests uneven success and challenges in some industries’ capacity to absorb new workers.
Post-Training Employment Obligations
In the case of training provided under the Department of Employment and Labour’s Labour Activation Programme, all registered training providers are contractually obliged to assist with employment placement following the conclusion of the training. However, the Minister was not able to confirm whether similar obligations apply to the various SETA-run programmes, as these are managed under separate structures and may involve different terms and conditions. This lack of clarity has raised questions about accountability and monitoring of public-funded training programmes, with some analysts urging tighter oversight to ensure real outcomes for beneficiaries.
Conclusion
South Africa’s labour market is under significant pressure due to a combination of high unemployment, persistent skills mismatches, and inconsistent training-to-employment outcomes. While efforts by the DHET and Department of Labour to identify and track in-demand skills are commendable, stronger alignment between education, industry, and job placement systems is urgently needed. Without coordinated action, the country risks entrenching structural unemployment and missing key opportunities for economic recovery and transformation.
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