The economic slowdown is not going to do much in terms of allowing skills shortages to do some catch-up. While shifts in technology might make some existing skills and even professions obsolete, the overall shortage will still be with us by the time the turn-around comes, but if South Africa plays its cards right its position may improve, writes Piet Coetzer.

According to experts, the skills shortage in South Africa’s infrastructure sector is likely to continue for at least 10 years, despite economic slowdown leading to a delay in many projects.

But if the country embarks on the appropriate programmes and interventions, the present recession conditions could leave it in a much better position than before, when the next upturn comes around.

There are already signs that increasing numbers of skilled South Africans who left the country in recent years for greener pastures abroad are heading home.

In January, futures guru Clem Sunter wrote in an article on Homecoming Revolution – a non-profit organisation that encourages South Africans living abroad to return home (www.homecomingrevolution.co.za) – “Suddenly local is lekker in South Africa. We could see a major reversal in the flow of skills in the event of a prolonged recession, since our economy is unlikely to suffer as much as, say, the UK, America and Canada.

“We are the America of Africa in that we represent a little less than 5% of the continent’s population and produce 30% of the continent’s GDP. The Chinese describe Africa as their ‘continent of choice’ because it is the richest continent on earth in terms of still-unwrapped mineral wealth”.

Sunter added, “South Africa is well placed to help Africa open up for business when the scramble for resources heats up again. And then there’s the Soccer World Cup in 2010.”

Top recruitment agencies and Homecoming Revolution report a dramatic increase in the number of international professionals and South Africans living abroad seeking employment opportunities in South Africa.

Some agencies report an increase of as much as between 20% and 25% in inquiries from professionals based in other countries.

However, the vast majority are from South Africans. As the recession bites globally, some skilled South Africans working abroad are becoming the casualties of retrenchment, and in many instances have little choice but to head home.

On the potential outflow side, some of the more popular destination countries for South Africans, like the UK and Australia, are also becoming less accessible.

The UK, which has officially admitted to being in recession, has for the first time put visa requirements in place for South Africans.

Australia, which is a major importer of skills from South Africa and elsewhere, has announced a review of the country’s migrant intake, making it less open than in the past.

In an address at the opening of a training academy for the construction industry in February, Minister of Labour Membathisi Mdladlana said that now is the best opportunity to develop skills rather than simply laying off workers as a defence against the recession. Now may also be a good time for both companies and individuals to prepare for dramatic technology driven changes in the economy.

The International Labour Organization determined that 70 professions would become obsolete by 2010 because of technological advances. However, about 100 new roles would be developed.

Errol Ashwell, managing director of a company that supplies digital design technologies for architectural and civil engineering professionals and mechanical design specialists in the manufacturing sector, also recently argued that efficiency gains and retraining are key elements of recession-proofing strategies.

He advocated that companies root out inefficiencies, including doing away with the building of physical prototypes, reducing drawing time by up to 50%, reducing potential design errors and saving manufacturing time and costs.

He also argued that retaining and upskilling will play a significant role in the efficiency-driven recession-proofing plans of companies. “Slump strategies should be driven by peak operational performance, with surplus skills, resulting from efficiency drives, being redeployed to generate complementary revenue-generating streams, offsetting the impact of shrinking sales,” he said.

A manufacturer, for instance, could retrain redundant engineering skills to beef up an after-sales service department. Additional steady revenue form an extended maintenance service would be valuable to a manufacturer during a downturn, while a revitalised after-sales service department could also serve a company’s customer relationships, until such time as they are ready to bear fruit again when the economy recovers, he added.

Minister Mdladlana pointed out that amendments to the Skills Development Act came into force on 1 December last year, after it was reviewed by his department during 2007 and 2008. The review set out largely to effect technical adjustments “which, once implemented, will result in a much more flexible and broadened policy framework that will allow implementers of skills development in South Africa to accelerate and increase the delivery of skills, in particular scarce skills,” he said.

“Implementers are encouraged to take particular note of the improvements in the Act to accelerate the development of artisans in the country and the institution of occupational excellence.

“I am also very excited that the Act provides a major revolution in our entire education and training system. The establishment of the Quality Council for Trades and Occupations will fill a missing link that we have debated for years. “It will provide, for the first time, a coherent framework for an alternative learning system that combines both theory and its application.

It will provide us with an opportunity to develop qualifications that start from sweeper to a specialist level,” he said.

In the interim, companies have also been encouraged to not only focus on cost cutting during the present difficult economic times, but to also consider utilising the skills development resources available via the Sector Education and Training Authorities (Setas) for their workforces in anticipation of the upswing that will come in the future.

Companies can submit workplace skills plans for the year from 1 April 2009 to 31 March 2010 together with an annual training report for the past year, and then qualify to receive back 50% of the training levy they have been paying during the past year.

In fact, in most cases Setas have combined these two reports into one. Some Setas will also provide small companies with a free service to complete the forms.

Use recession for skills growth

Now is a good time to prepare for change