Jonathan Shapiro | CEO | LESCO Manufacturing | mail me |
COVID-19’s devastating grip on economies may be dominating headlines but in many parts of the world – specifically South Africa – chronic unemployment is arguably, the more debilitating ‘pandemic’. With the world record for the highest unemployment rate, close to half our population (44.4%) who are eligible to work, remain unemployed.
The pressures of this social and economic reality manifest in multiple, devastating ways.
Challenges catalysed include:
- A high dependency on social grants (possibly among the highest in the world)
- Widening levels of inequality
- Violence (particularly gender-based)
- Excessive levels of crime and
- Social unrest (to unprecedented levels, as witnessed by recent events).
All of these dynamics also take a toll on our country’s reputation, which in turn negatively impacts both local and foreign investment and fuels the growing trends of emigration, which exacerbates brain drain.
But, spurred by the Fourth Industrial Revolution, the disproportionate shift from skill-intensive to capital intensive economies has been to the detriment of employment creation. The disconnect in balancing the opportunities automation presents with the critical need for sustainable job creation, is increasingly apparent, creating even greater social and financial inequalities.
What resonates with me on many levels is the words of Lao Tzu:
“If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for a lifetime.”
Vicious circle
Simply put, South Africa has an abundance of human capital which is not being leveraged.
What’s debilitating is the glaring lack of skills – largely stemming from inadequacies in South Africa’s education system. This is aggravated by a lack of opportunities for the unskilled or those with low-mid skill levels.
The conundrum for many who need jobs is that businesses are looking for specific skills but to gain those skills they first require workplace exposure. It’s a vicious circle. The creation of large scale employment opportunities must be prioritised by the public and private sectors but, unfortunately, this is not an area where satisfactory progress can be made in the short-to-medium-term.
What’s clear is that leveraging the availability of human capital and building the skills pool requires collective commitment. The emphasis has to be on creating decent work opportunities that integrate sections of society who are unskilled or possess low-skill levels.
Role of government
From a government perspective, the focus on a more responsive education system, development-oriented policy environments and extending support for businesses (particularly for SMEs, who are responsible for almost two-thirds of employment in South Africa) – must be intensified and accelerated.
Financial incentives in the form of wage subsidies and additional workplace training/development incentives are critical aspects of stimulating economic recovery and extending opportunities that align with the International Labour Organisation’s Decent Work Agenda.
An ace up local manufacturers’ sleeve
Enabling policies add tremendous value, particularly for businesses in labour-intensive sectors; the same sectors that also have a significant multiplier effect.
Given the higher degree of repetitive tasks, manufacturing is among those sectors that has the potential to further absorb a greater percentage of unskilled/low-skilled people into the workforce. It also has the capacity to build on certain basic skills – with relative ease.
Industries/all businesses should consistently cultivate a learning and development environment – one that prioritises skills transfer to ensure inclusive work environments. But, progress in addressing South Africa’s unemployment crisis must also involve creating meaningful opportunities for vulnerable and marginalised demographics, such as women and people with disabilities.
At the end of the day, government and businesses striking a better balance can only translate to stronger social structures, enhanced competitiveness, more consistent economic growth, and much-needed social and economic resilience.
