Occupations in high demand and critical skills in South Africa
Statistics South Africa (Stats SA) in February 2021 revealed the grim state of employment in the country, with 15,0 million e
mployed persons in the fourth quarter of 2020 vs 7,2 million unemployed persons in the same quarter. This is a
significant increase of 1,7 percentage points in the official unemployment rate to 32,5% - the highest since the start of the Quarterly Labour Force Survey (QLFS) in 2008.
The expanded definition of unemployed is - people who did not work at the time of the census, but were looking for work. Stats SA
The official definition of unemployment, recently changed by Stats SA in line with 80% of other developed and developing countries:
People within the economically active population who:
(a) did not work during the seven days prior to the interview.
(b) want to work and are available to start work within a week of the interview, and,
(c) have taken active steps to look for work or to start some form of self-employment in the four weeks prior to the interview.
Occupations in High Demand (OIHD)
Amongst other reports generated by the South African government, the National List of Occupations in High Demand 2020 is one, reviewed every 2 years. Occupations in high demand refer to:
occupations that show relatively high employment growth based on past, present and future trends and that are currently in shortage.
The 2020 technical report comprises a total of 345 occupations, including a view of qualifications and skills landscape based on the listed occupations. A crucial input is the rate of recovery due to COVID-19, reflecting in an increase, decrease or no change in labour demand. The Occupations in High Demand list is structured based on the Organising Framework for Occupations (OFO) which is a coded occupational classification system adopted by the Department of Higher Education and Training (DHET) to identify, report and monitor skills demand and supply in the South African labour market. It provides insight into shifts at task level, at job and occupational level that indicate changes in demand in the labour market.
The framework consists of eight major groups, categorised primarily according to skill level and secondarily according to the area of specialisation:
Managers
Professionals
Technicians and associate professionals
Clerical support workers
Service and sales workers
Skilled agricultural, forestry, fishery, craft, and related trades workers
Plant and machine operators and assemblers
Elementary occupations
The table below shows the comparison of occupations in each of the major groups, compared to the technical report outcomes of 2018, with a major change and decrease reflected in Clerical support workers by 50% which has underlying job roles of Tellers, Money Collectors and Related Clerks, General Office Clerks and Secretaries (General) to name a few.
Along with the 345 occupations listed, there is an indication of minimum qualification required. The table below shows a count of minimum qualifications across all 345 occupations. 25% require a Diploma or advanced certificate (NQF Level 6) and 15.6% require Bachelor’s degree or advanced diploma (NQF Level 7).
Minimum Qualification count by OIHD
A further look at how the OIHD are listed within the OIHD technical report is shown in the table below, with 10 of 345 occupations in the OIHD list
*Average salaries per year column is not in the technical report. Average salaries are retrieved from Payscale and Glassdoor based on South Africa salaries.
| 6-Digit OFO Code | 6-Digit OFO Description | Minimum Qualification Required | Average Salary Per Year |
|---|---|---|---|
| 2019-122105 | Customer Service Manager | Diploma or advanced certificate (NQF Level 6) | R482 571 |
| 2019-132401 | Supply and distribution manager | Occupational certificate (NQF Level 6) | R502 734 |
| 2019-211401 | Geologist | Bachelor's degree, occupational certificate or advanced diploma (NQF Level 7) | R561 677 |
| 2019-216604 | Web Developer | Bachelor's degree or advanced diploma (NQF Level 7) | R361 499 |
| 2019-234101 | Foundation Phase School Teacher | Bachelor's degree or advanced diploma (NQF Level 7) | R237 600 |
| 2019-261106 | Advocate | Bachelor's degree or advanced diploma (NQF Level 7) | R381 699 |
| 2019-332301 | Retail Buyer | Occupational certificate (NQF Level 5) | R250 372 |
| 2019-422206 | Call or Contact Centre Agent | National certificate (NQF Level 4) | R144 000 |
| 2019-653302 | Mechanical Equipment Repairer | No qualification required | R246 436 |
| 2019-242202 | Policy Analyst | Bachelor honours degree, postgraduate diploma, or bachelor's degree (NQF Level 8) | R228 000 |
There is no doubt that COVID-19 has had a detrimental effect on the South African economy, further indicated by the recovery timeframe per sub-sector in the table below, as well as additional statistics from Stats SA.
“Gross domestic product (GDP) fell by just over 16% between the first and second quarters of 2020, giving an annualised growth rate of ‑51%. Construction was the biggest loser. Already in bad shape before the pandemic, the industry experienced its eighth consecutive quarter of economic decline, slumping further by 76,6%. Household spending slumped by 49,8% in line with the closure of hotels, restaurants, transport services, recreational facilities and many stores. Spending on restaurants and hotels ground to an almost complete halt, plunging by 99,9%.” Stats SA
Potential sector-level impact of COVID-19 in South Africa
The SA government further develops additional occupation lists - List of Priority Occupations (LPO) and Critical Skills List (CSL), which will show an overlap with OIHD. All three lists are crucial in identifying occupational shortages in the country. The chart below summarises the overlap of LPO and CSL by Sub Major Group occupation.
Count of List of Priority Occupations (LPO) and Critical Skills List (CSL) by Sub Major Group
Critical Skills List (CSL)
The Department of Home Affairs (DHA) defines critical skills as:
Skills that are regarded, through labour market availability and analysis, to be critical for improvement in economic growth and without which certain projects and work could not be undertaken, as well as high-level skills that will enhance the skills pool in the economy which in turn will encourage and potentially accelerate growth in the economy.
For an occupation to be included in the CSL, it must:
Currently be in acute shortage or likely to be in the future, due to its importance for South African strategic priorities.
Require a high-level skill or advanced qualification.
Require a long lead-time to develop a domestic supply pipeline.
A simplified definition of Critical skills is high-level skills that are not easily sought within the country. This defers from Scarce Skills which are skills that are unavailable in the country, however, are not always necessarily deemed to be in high in-demand.
The new Critical Skills List of 2021 is intended to be published in due course, after public comments on the Technical Report for the 2020 Critical Skills List closed on 31 March 2021. The draft CSL consists of 126 occupations, summarised in the count of List of Priority Occupations (LPO) and Critical Skills List (CSL) Sub Major Group chart above.
CSL is identified based on 4 dimension areas depicted in the visual below:
Of the 357 occupations identified as acute shortage (D1) or of strategic priority (D2)
92 occupations (25.77%) are in acute shortage.
208 occupations (58.26%) are of strategic priority.
52 occupations (14.57%) are both in acute shortage and strategic priority, with some of the occupations indicated below:
ICT systems analyst Commercial cleaner
Retail general manager Quality controller (manufacturing)
Insurance agent Fitter and turner
Multimedia designer Data scientist
Architect General accountant
CSL is set to inform immigration policy, allowing foreign nationals that possess the minimum skill or qualification to apply for Critical Skills Work Visa (CSWV) and apply for jobs where the occupation is on the critical skills list. Some of the requirements that need to be met in order to apply for a Critical Skills Work Visa:
Proof of evaluation of the foreign qualification by SAQA, translated by a sworn translator into one of the official languages of the Republic.
Proof of employment within 12 months after obtaining a critical skills work visa in the form of an employment contract specifying the occupation and capacity in which the foreigner shall be employed.
Further details regarding eligibility for the CSWV and documents required to apply can be found on the DHA website, with applications processed via VFS Global.
Career Junxion Index (CJI)
The March 2021 index summary, where CJI provides an executive summary of SA labour market, demand & supply, reflects the following:
Information Technology (IT) remains the top employment prospect sector of 12 sectors. IT is the highest in demand (based on an overview of vacancy levels across various sectors) and is one of the top-paying sectors, with Gauteng province showcasing the highest cost to company (CTC) across provinces, although this could fluctuate depending on the occupation.
Systems / Network Administration - Average salary offerings for an intermediate position:
GP R 34,019 to R 43,121 p.m. (CTC)
WC R 31,354 to R 41,035 p.m. (CTC)
KZN R 26,719 to R 32,156 p.m. (CTC)
The table below is based on the top 5 sectors high in demand - based on an overview of vacancy levels across various sectors. Sectors high in supply - when looking at active job seekers across various sectors.
Top 5 sectors high in demand & supply
| Sector | Approx demand % | Approx supply % |
|---|---|---|
| Information Technology | 27 | 7.5 |
| Business & Management | 17 | 20.5 |
| Finance | 14 | 14 |
| Sales | 10.5 | 6.5 |
| Admin, Office & Support | 6.5 | 22.5 |
Although the employment outlook is not optimal, there are some opportunities that can be tapped into by the unemployed, with the hope that companies expand their recruiting practices which can often be barriers to entry for job seekers, especially for new graduates.
*Sources of all information provided in this post is included as links within the specific section.
