Skill Shortage In South Africa – Most In-Demand Skills In The South African Job Market

South Africa, being the second-biggest economy in the continent, has made substantial progress in the last few years. However, income inequality is rampant in the country, with the South African society being the most unequal economy globally. While the consumption of the population of rich individuals stands at around 61%, the consumption of the bottom strata is only 4.5%. Over the years, however, the country has made progress in eradicating poverty, as the number of poor households dropped to 8% in 2011 from 17.9% in 2001.

The unemployment rate, which currently stands at 26.32%, has been instrumental in driving the cycle of poverty. This figure is even higher for the younger population. With more than 60% of the South African population below 30 years of age, it is important for South Africa to utilize this fast-growing younger generation to drive economic growth. To achieve this goal, it is important that the younger generation is provided with skill-based education and training for critical future skills. In this article, we will cover the most in-demand skills in South Africa and the sectors which experience the most skill shortages.

Skills Shortages in South Africa

According to ManpowerGroup research on talent shortage in South Africa, many large companies in the country have a significant shortage of people (54%) to fill in some key positions. This percentage stands at 39% for medium-sized enterprises, 23% for small enterprises, and 25% for micro-businesses.

Following were some of the toughest positions to fill in the country –

1. Executive and management positions

2. Male and female artisans: Car mechanics, welders, electricians

3. B2B and B2C sales representatives and call center agents

4. Quality control technicians and technical staff

5. Electrical, chemical, mechanical, and civil engineers

6. Financial analysts, auditors, and chartered accountants

7. Teachers

8. Network administrators, cybersecurity experts, and tech support.

9. Personal assistants, administrative assistants, and receptionists

10. Drivers: Deliveries, trucks, mass transit, and construction

While the global skills shortage stands at around 54%, the skills shortage in South Africa is around 34%. The ManpowerGroup report highlights that the labor market needs practical skills to bring a balance in the job industry of the country.

Most sought-after skills in South Africa 

According to an online survey, the most sought-after skills in the South African job market are –

1. Department or Middle Management: Middle management roles are very much in demand in the South African job market. The year-on-year demand for the department and middle manager roles has increased by 76%.

2. Software Developers: The demand for people with software development skills has also been growing steadily. Between January 2021 to May 2021, the demand for software developers has increased by almost 38%.

3. Consultants or Sales Representatives: The demand for sales reps has also been growing steadily. The demand for sales reps has increased by almost 69% since May 2020.

There are certain fields that have a competitive advantage, which means that the demand for critical skills is more than the supply. Some of these fields are –

· Sales

· Finance

· Information Technology

· Business and Management

· Office, Admin, and Support

Conclusion

Although there is a widespread skill shortage in South Africa, there are useful ways to address that. Skill development can be instrumental in driving the growth of the South African nation. This can be achieved if companies and organizations spend around 1.5% of the payroll on workforce training. If the companies want to address the problem of skills shortage observed across South Africa, it is important that they put in a concerted and collaborative effort.