The ANC is a liberation movement and part of what we were doing was to liberate all South Africans, you included! We as the ANC have always represented fighting and winning ideas. Even this time around we will be able to lead the country in dealing with the huge challenges that we are facing, including the issue of the youth wage subsidy that you want to come here and brag about today. [Interjections.]
The country is commemorating Youth Month in the midst of an economic recession, which is exacerbating youth unemployment, poverty and inequality. Furthermore, the country is continually being hit by the structural unemployment of both adults and young people.
Most of our young people are either inappropriately or inadequately skilled for them to be able to take up the few jobs that are available. And, what is worse, there is a significant gap between the education and skills provision on the one hand and the economic expectations on the other hand. This means that as a country we are lagging behind in closing the gap so that every young person can get an opportunity to meaningfully participate in the economy of the country. The other aspect is that the country has no effective skills plan that will provide industry information to institutions of higher learning on the skills required for immediate interventions.
The country's economy used to need skills that could respond only to the mineral manipulation processes of the time. Today this sector is vulnerable to any economic shift. We have seen on the news since last week that Aquarius Platinum Mine in the North West Province is suspending operations at Marikana Platinum Mine, owing to the unfavourable trading conditions in the platinum industry. This means the retrenchment of over 10 000 mine workers, of whom the majority are in low skill level positions. Research studies have also found that the majority of mine workers have a low education level and, therefore, they will need reskilling, as their current skills may not fit in with other sectors of the economy. The retrenchment of these employees will add to the already alarming unemployment and poverty rates, and the livelihoods of their families will also be negatively affected.
Our democratic government has had to devise economic development initiatives that will respond to the global economic demands, instabilities in market forces, macroeconomic shocks and a rising unemployment rate. The country has had to start planning for the kinds of skills needed, and the urgent processes of offering such skills. This is no easy task, particularly if you have to work against time to deliver to our impatient, aspiring young people.
South Africa has made great strides in shifting its demographic profile towards greater population representivity and increased participation in higher education since 2004. The higher education sector is achieving the transformation objectives set out in the White Paper, one of which is to promote equity of access and fair chances of success for all who are seeking to realise their fullest potential through higher education, while it is eradicating all forms of unfair discrimination and advancing redress for past inequalities.
The 2010 general household survey found that 63,9% of those enrolled at higher educational institutions were Africans. There has been an increase in the number of female students in the institutions of higher learning. Currently, 53% of the total student population in higher education is female. Though there has been an increase in the number of female students at the institutions of higher learning, the throughput rate of female students is not well matched with the enrolments.
The report of the Ministerial Review Committee on the National System of Innovation released in March 2012 has revealed that, despite sustained efforts to increase admission to higher education for academically deserving but financially disadvantaged students, there is a continuing low throughput rate and high attrition rate or dropout rate at all levels of study. [Interjections.] You will be responded to in time. Give me a chance. [Laughter.]
The National Development Plan: Vision for 2030 has identified education and training as central to South Africa's long-term development. The world is shifting from a resource economy to a knowledge-based economy, and this will need well-educated young people to contribute to socioeconomic development. This assertion therefore makes higher education relevant, as it has the potential to contribute to the growth and development of the economy by producing high-level skilled people who are capable of doing research that will translate into innovations needed for the development and growth of the economy.
In South Africa only 11,2% of persons aged 20 years and older have tertiary qualifications, as opposed to 26,2% with Grade 12 and 37,5% with some secondary education. This poses a challenge to government to expand post- school education in order to enable the majority of those in Grade 12 to access higher education in order to improve their employability prospects.
The Labour Force Survey reported that unemployment declines as people achieve higher education qualifications. This simply means that those who are in possession of higher education qualifications are likely to be employed, compared to those who are not, and the challenge is that those who do not have higher qualifications are in the majority. They are also at risk of long-term unemployment. Therefore, there is a need for both short and long-term interventions in this regard.
Business should partner with government in sharing the cost of education, as it also benefits from the skilled workforce. We should also appreciate the role that business is already playing through its contribution to the skills development levies, which are allocated to the Sector Education and Training Authorities to develop the skills of the employed and unemployed through learnerships, apprenticeships and funding of occupationally directed qualifications.
South African youth need skills in order to counter unemployment, inequality and poverty. Access to and success in higher education for previously disadvantaged individuals, especially Africans, women, rural people, and people with disabilities, should continue to be facilitated. One factor which is worrying is the lack of access to information in regard to scarce skills programmes and funding opportunities for the majority of learners in schools. Career guidance programmes targeting the youth must be widely spread in order to reach even those who are in remote areas.
There are government projects under way that will create jobs for many of the youth in the country - infrastructure development projects, for instance. In his 2012 state of the nation address, President Jacob Zuma announced that government would embark on massive infrastructure development in 2012 and beyond. The sectors that are targeted are rail, ports, roads and water infrastructure.
These projects will need skilled people in the low, middle and high-level skills categories in construction and engineering. Institutions should increase enrolment in these fields to ensure that there are adequate skills during and after construction of these projects.
Climate change poses challenges and also gives employment opportunities for South Africa. The recent Green Jobs Initiative by the European Centre for the Development of Vocational Training highlighted the dual challenge of green jobs: to make economic growth and development compatible with climate stabilisation and a sustainable environmental footprint. The organisations claim that the shift towards greening the economy will require the second greatest economic transformation after the industrial revolution.
Green sectors will require new jobs, but they will also need to redefine many existing job profiles. To meet this challenge education and training systems will need to supply a well-trained, highly skilled labour force. Training and guidance services that steer people towards jobs in growing sectors should focus on skills related to energy efficiency and renewable energy implementation.
The greening of the economy presents a major opportunity to start new businesses, develop new markets and lower energy costs. All these can create employment opportunities for the youth.
The study conducted by the Higher Education HIV and Aids Programme in 2010 revealed that there is a high prevalence of HIV/Aids among students in higher education.
Tenders without skills are not sustainable, and therefore our people need skills to be able to sustain all these endeavours. I thank you. [Time expired.] [Applause.]