Skills shortage a major concern TWENTY-SIX PERCENT of companies surveyed chose the skills shortage as their main concern, according to a report on the South African skills crisis issued by the Centre for Development and Enterprise (CDE).

Dr , director and chief economist at Econometrix, said at the ITWeb Enterprise Risk Management Conference: "Skills shortages lead to paralysis in delivery," adding that this is something that is critical in the years leading up to 2010.

Although candidates with tertiary education are still the most sought after, unemployment rates for those with tertiary education went from 6.6% in 1995, to 9.7% in 2005.

"There is also a massive inequality in education," explained Jammine. "The number of black Africans with degrees is only 1.8%, while whites are at 15%." The large majority of both groups only get as far as matric (28.2% and 45.3%, respectively).

With regards to university exemption at matric level, 51.7% of white matriculants achieve exemption, while only 11.4% of black Africans do, Jammine noted.

"Also, 70.4% of white students get jobs immediately after graduating, while only 43% of black Africans do."

Jammine also explained that the skills shortage is most acute in the public sector and the following skills are most sought after: engineers and natural scientists, artisans, IT professionals, educators and nurses, and managers with financial and people skills.

"However, estimates for 2009/10 government expenditure on education is at 18.3%, the second highest governmental financial consideration after economic services," he said. These include water schemes, fuel and energy, agriculture, mining, manufacturing, construction, transport and communication.

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