13
FUNDING OUR YOUTH FOR SKILLS DEVELOPMENT 1
FUNDINGOURYOUTHFORSKILLSDEVELOPMENT
1
2
FocusonourYouth
TheSta$s$calReleaseonNa$onalandProvincialLabourMarket:YouthforQ1:2008toQ1:2015areindica3ngthatofthoseofworkingageinSouthAfrica,19.7millionareyouth(ages15and34years)and16.2millionareadults(ages35to64years).Thus,themajority(55%)ofSouthAfrica’spoten3alworkingforceconsistofouryouth(ages15to34years).
Employed6.2million
31%
Unemployed(Ac3velyseekinganddiscouraged)
5.7million29%
SchoolLearners(BasicEduca3on)
2.7million14%
CommunityCollegeLearners(PALCs)
0.3million1%
TVETCollegeLearners,0.8million
4%
UniversityStudents1.1million
6%
Workplacebasedlearning0.4million
2%
OtherNotEconomically
Ac3ve2.5million
13%
3
TheSta$s$calReleaseonNa$onalandProvincialLabourMarket:YouthforQ1:2008toQ1:2015andDHETinforma$onprovidedtothePresiden$alCommissiononHigherEduca$onandTraining
19.7m
illionyouth(ages1
4to34years)
Only2.6million(13%)areinthePSETsystem.
Yet,5.7million(29%)areunemployed.
Unemployed(Ac3velyseekinganddiscouraged)
5.7million29%
4
Million %Primaryandlower 0.5 9%Secondaryincomplete 2.9 51%Secondarycomplete 1.9 33%Ter3ary 0.4 7%TOTAL 5.7
Ofthe5.7millionunemployedyouth,4.8million(93%)eitherhaveaneduca\onlevelofmatriconly(33%)orbelowmatric(60%),withfewhavingter\aryeduca\on.
Thismeans,thatthemajority(93%)oftheunemployedmaybeabletoacquireskillsthroughtheCETsystem(incl.skillsprogrammes)andTVETsystem(incl.occupa\onalprogrammes).
NOTE:OfthosethatpasstheirNa\onalSeniorCer\ficate(matric)+/-30%qualifyforuniversityentrance.Thus,70%mustbecateredforbyTVETsystemandthosewithoutmatricbytheCETsysteminthemain.
Employed6.2million
31%
Unemployed(Ac3velyseekinganddiscouraged)
5.7million29%
SchoolLearners(BasicEduca3on)
2.7million14%
CommunityCollegeLearners(PALCs)
0.3million1%
TVETCollegeLearners,0.8million
4%
UniversityStudents1.1million
6%
Workplacebasedlearning0.4million
2%
OtherNotEconomically
Ac3ve2.5million
13%
5
19.7m
illionyouth(ages1
4to34years)
Givingconsidera\ontheneedsofSA’syouth(especiallytheunemployed)andthegrowthenvisionedintheNDP,shouldmorefundingbeallocatedtothe6%oftheyouththatareuniversitystudents?OrshouldmorefundingbeallocatedtowardsTVETcolleges,CommunitycollegesandWPBLtoprovideskillsdevelopmentopportuni\esforthe29%unemployedyouth?
PSETSystem:ShapeandSize
6
HigherEduca3on+/-1.1million
TVET+/-800000
CETColleges:275000
26Universi3es:96900114PHEIs:143000
PSETSystemtocaterfor+/-18millionci\zens
50TVETColleges:711000627PrivateColleges:79000
6
NDPTarget:1.62million
NDPTarget:2.5million
NDPTarget:1million
Systemgrowth=0.52million(32%)
Systemgrowth=1.7million(213%)
Systemgrowth=725000(264%)
LargestgrowthenvisagedfortheTVETandCETsystem.Thisincludesastrongcomponentofworkplacebasedlearning,especiallyintheTVETsystem.
TheSETAsandtheNSFwillcon\nuetoplayacri\calrollinlinkingthePSETlearningins\tu\onstotheworkplacethroughtheprovisionoffundingforWPBL.
7
CurrentlythelargestnumberoflearnersinthePSETsystemisenrolledatUniversi3es(1.1million),followedbyTVETcolleges(800thousand)andCommunityColleges(275thousand).Thefundingalloca3ontothehighereduca3onsystem(Universi3es)consistofR30.3million(54%)ofthetotalalloca3ontotheDHET(R56.6million),whiletheTVETcollegesreceivesR8.4million(15%)andCommunityCollegesR1.8million(3%).TheSETAsandtheNSFreceiveR14.7million(26%)fromtheSDLforfundinginthemainworkplacebasedlearning.ThiscurrentlearnerenrolmentandfundingofthePSETseemstobeincontrastwiththeneedsoftheunemployedyouth(andthosepassingmatric)fortheaaainmentofskillsthatcouldleadtotheiremploymentasthefocusisprimarytowardsthehighereduca3onsector.
7
PSETFunding
2012/13 2013/14 2014/15 2015/16 R'000 R'000 R'000 R'000Universitysubsidies 20902860 22388767 24155093 26243227Na\onal Student Financial Aid Scheme(NSFAS) 5195255 5769405 6138832 6448551NSFAS:Administra\on 82519 87676 116200 148878UniversityLoans 3377902 3693295 3914893 4094978TVETCollegeBursaries 1734834 1988434 2107739 2204695Technical and Voca\onal Educa\on andTrainingColleges 4757271 5462868 5827173 6179573TVETCollegeSubsidies 4757271 3020189 3195827 1140945TVETCollegeCondi\onalGrant 2442679 2631346 TVET College Compensa\on of EmployeesandOpera\onalCosts 5038628CommunityEduca\onandTraining(CET) 1647884 1776752 1853062 1780353CET Alloca\on at Provincial Educa\onDepartments 1647884 1776752 1853062 CETCollegeSubsidies 55408CET Compensa\on of Employees andOpera\onalCosts 1724945DirectCharges:SkillsLevy 9606148 12403000 13440000 14690000Sector Educa\on and Training Authori\es(SkillsLevy) 7684915 9922395 10752647
11752707
Na\onalSkillsFund(SkillsLevy) 1921233 2480605 2687353 2937293OtherOpera\onalAc\vi\es 888582 962608 1014340 1286096 Total:DHETAlloca\on 42998000 48763400 52428500 56627800
8
9
Tomeetthesegrowthprojec3ons,significantaddi3onalfundingisrequiredforthePSETsystem,whichhasbeencostedbytheNa3onalTreasuryatR31billionaddi3onalfundingforthestatusquoscenariotoR228billionaddi3onalfundingforfullpolicyscenariorequiredperannumby2030:
9
Projected(R'm) 2014
Sector Item CurrentValueStatusQuoScenario
FullPolicyScenario MixedScenario
StatusQuoScenario
FullPolicyScenario MixedScenario
CurrentCosts R8816 R70890 R184780 R44878 R531304 R1324701 R394708Fundingandfinancing:Total R10076 R57440 R49741 R39035 R424672 R408010 R336691Shortfall(-)/Surplus(+) R1260 -R13450 -R135039 -R5843 -R106632 -R916691 -R58017Costs R52920 R259356 R328258 R261342 R2230502 R2546273 R2142417Fundingandfinancing R58854 R248821 R248821 R248821 R2200662 R2200662 R2200662Shortfall(-)/Surplus(+) R5935 -R10535 -R79437 -R12521 -R29840 -R345611 R58245CurrentCosts R1884 R14451 R21228 R15169 R116273 R190785 R140138Fundingandfinancing:Total R1884 R7343 R7343 R7343 R63665 R63665 R63665Shortfall(-)/Surplus(+) R0 -R7108 -R13886 -R7826 -R52608 -R127120 -R76473CurrentCosts R427 R1719 R1719 R1719 R15024123 R15024123 R15024123Fundingandfinancing:Total R427 R1719 R1719 R1719 R15024123 R15024123 R15024123Shortfall(+)/Surplus(-) R0 R0 R0 R0 R0 R0 R0CurrentCosts R64047 R346416 R535985 R323108 R17902202 R19085882 R17701386Fundingandfinancing:Total R71241 R315323 R307623 R296917 R17713122 R17696460 R17625141Shortfall(+)/Surplus(-) R7195 -R31093 -R228362 -R26191 -R189080 -R1389422 -R76245
Otherinstitutions(inclDHET)
Total
2030 Cumulative
TVET
Unviersities
CommunityColleges
10
KEYREMARKSItisacknowledgedthatalthoughtheHigherEduca3on(Universi3es)systemisthebestfundedofallthePSETsub-systems,thefundingtowardsthesystemhasnotkeptupwithgrowthintheHigherEduca3onsystem.Thishasledtogradualsystemicunderfundingofthesystembygovernment,resul3nginins3tu3onshavingtoraiseincomethroughstudentfees,makingitincreasinglyunaffordabletothelowermiddleandworkingclass.Hence,studentsareprotes3ngfornofeesincrease.ItisfurtheracknowledgedthatcurrentfundingtowardstheTVETsystemandCETsystemisevenweakerthanthatoftheHigherEduca3onsystem,whichhasanega3veimpactonthequalityofeduca3onandtrainingwithinthesePSETsub-systems.ItisalsoacknowledgedthatthelargestgrowthinthePSETsystemistargetedtowardstheTVETandCETsystem,whichwillrequiresubstan3alfunding.Anditisacknowledgedthatworkplacebasedlearningiscri3calcomponenttothelearningpathwayofmanylearnersandshouldreceivededicatedfunding.
10
11
Andallofthesefundingdemandsareexpectedwithinaconstrainedfiscalenvironmentwithsluggisheconomicgrowth.
11
12
YETTHEQUESTIONREMAINS…Whatwillbethesocioeconomicimpactshouldwenotinvestintheeduca3onandtrainingofouryouth?andWhatwillhappentoouraccumulatedwealthasacountry,shouldwenotinvestintheeduca3onandtrainingofouryouth?
12
“YOUAREBECAUSEIAMIAMBECAUSEYOUARE”
13
THANKYOU
