The Difference between Critical and Scarce skills

When looking at the country’s current or future potential for a skilled, qualified, and experienced workforce, it is important to identify the scarce skills (insufficient or in demand) and the critical skills (extremely important) in order to identify and forecast skills demand across government and economic sectors. This provides:

• A set of indicators for skills development interventions for the Department of Labour.
• A set of indicators for course development and career guidance that should be provided to learners and communities, for the Education and training sphere.
• A basis for establishing the Work Permit Quota List for the Department of Home Affairs

Scarce skills are usually measured in terms of the numerical imbalances that exist in employment because of a difference between the demand and supply of skills. The Department of Labour also differentiates between absolute and relative scarcity of skills.

1. Absolute scarcity is when suitably skilled people are not available in the labour market. This may be due to the emergence of a new occupation where there are few, if any, people in the country with the requisite skills.

OR

When a country is unable to implement planned growth strategies because productivity, service delivery and quality problems are directly attributable to a lack of skilled people.

OR

Where there are no people enrolled or engaged in the process of acquiring skills that need to be replaced.

Currently, the list of absolute scarce skills for the Construction sector is as follows:

• Electrical Engineer
• Project Manager            
• Urban and Regional Planner
• Construction Project Manager   
• Water Plant Operator
• Plumber (General)
• Civil Engineer Electrician (General)
• Civil Engineering Technologist   
  

2. Relative scarcity refers to the availability of suitably skilled people, but they do not exhibit other employment criteria, such as high-level work experience, for example, project management of large construction sites such as dams or power plants.

OR

They are unwilling to work outside of urban areas.

OR

There are equity considerations, where there are few candidates with the requisite skills from specific groups.

OR

When there are candidates in the process of acquiring the necessary skills (qualification and experience) but where the lead time will mean that they are not available in the short term to meet replacement demand.

Currently, the list of relative scarce skills for the Construction sector is as follows:

• Compliance Officer (Risk Officer)
• Community Development Manager        
• Environmental Manager
• Civil Engineering Technician
• Town Planning Technician
• Disaster Management Manager
• Electrical Engineering Technician
• Environmental Officer   
• Building Construction Supervisor
• Water Quality Technician            
• Waste Materials Plant Operator
• Electrical Engineering Technologist         
• Architect            
• Environmental Health Officer     
• Building Site Inspector
• Safety, Health, Environment and Quality (SHE&Q)            

‘Critical’ skills refer to capabilities needed within an occupation. In the South African context, there are two groups of critical skills:

1. Generic skills, including cognitive skills (problem-solving, learning to learn), language and literacy skills, mathematical skills, ICT skills and working in teams.
2. Occupationally specific “top-up” skills required for performance within that occupation to fill a “skills gap” that might have arisen as a result of changing technology or new forms of work organisation.

These are some examples of generic and technical ‘top-up’ skills for the construction sector:

Generic ‘top-up’ skills

• Computing skills
• Communication
• Conflict Analysis and Resolution
• Financial Life Skills
• Problem Solving & Decision Making

Technical ‘top-up’ skills

• Advanced Geographic Information System
• Environmental Practice
• Fire Fighter Training
• Grader operator
• Risk Management
• Project Management
• Ward Committee Training

Both scarce and critical skills must be identified at the occupational level, with scarce skills being considered against the occupation itself and critical skills being reflected as specific skills within the occupation.

How is the National Scarce Skills List compiled?

The Department of Employment and Labour uses relevant data from SETA Sector Skills Plans to prepare a National Scarce Skills List. Inputs from other government departments, such as Home Affairs and the Departments of Trade and Industry, Public Enterprises, and Science and Technology are also considered to validate the scarcities identified in the SETA Sector Skills Plans that had been highlighted in the National Scarce Skills List.

This information is then used to draft the 5-Year Sector Skills Plans utilising the Organising Framework of Occupations (OFO) that allows different economic sectors to identify and forecast skills shortages at a sufficiently detailed and meaningful level of the occupation. [NOTE: More information on the OFO can be obtained from the Training article in the March newsletter]

How are the National Scarce Skills addressed?

The various SETAs offer Discretionary Grants that are aimed at encouraging stakeholders to contribute towards skills development. The bulk of discretional funding is directed at the provision of scarce skills or learning programmes, which cover:

• Learnerships
• Work Integrated Learning
• Internships
• Bursaries
• Skills programmes

The intended outcome of the Discretionary Grants is to contribute to growth and development, transformation, and employment equity. This means that the training should improve the employee profile at all levels in terms of race, gender, and disability. It should provide opportunities for young people (particularly those who are not receiving education and training or those who are unemployed), and enable access to special groups, such as military veterans, women in construction, youth, and people with disabilities.

How to apply for Discretionary Grants

SETAs make funds available during a window period during which it accepts applications from employers. The opening of this window is advertised on the various SETA websites, on community radio stations and in national newspapers.

Discretionary Grants are allocated at the sole discretion of the SETAs depending on the availability of funds, adherence to specific criteria as per their Discretionary Grants Policy and Guidelines, as well as approval from the SETA Accounting Authority.

This Grant is intended to meet the sector’s needs as set out in the Sector Skills Plan (SSP), Strategic Plan and priorities outlined in the National Skills Development Plan.

CETA’s Discretionary Grant window usually opens between May and August each year., It is best to continually check their website for updates: https://www.ceta.org.za/media/press-news

More information on the  online application process can be found at: https://www.ceta.org.za/files/files/DISCRETIONARY-GRANTS-APPLICATION-SYSTEM-USER-MANUAL-1.pdf

Heidi Kilian

Head: Training Academy

Skills Development Facilitation Corporation. Discretionary grants – what are they, and how do I apply? (2022) Available from: https://sdfcorp.co.za/discretionary-grants-what-are-they-and-how-do-i-apply/ [Accessed 25 April 2023]

Construction Education Training Authority. Ceta 2022/23 dg window applications (2022) Available from: https://www.ceta.org.za/media/press-news/ceta-202223-dg-window-applications [Accessed 22 April 2023]

Construction Education Training Authority. Sector Skills Plan 2021/22 – 2025/26. (2023) https://www.ceta.org.za/files/files/CETA-SSP-202122-202526.pdf [Accessed: 22 April 2023]

Local Government Sector Education and Training Authority (LGSETA). Scarce & Critical Skills (2020) Available from: https://lgseta.org.za/ssp/scarceAndCriticalSkills/ [Accessed: 22 April 2023]