Rethinking skills planning in South Africa: Bridging the demand and supply gap

Abstract

Orientation: Despite skills planning by (SETAs), South Africa continued to experience persistent skills shortages alongside rising graduate unemployment, indicating a mismatch between education supply and labour market demand.
Research purpose: This article examined why skills planning structures failed to align skills supply with labour market demand and explored how a demand-driven approach could reduce graduate unemployment.
Motivation for the study: High unemployment rates alongside continued graduate production revealed structural inefficiencies in national skills planning. These inefficiencies undermined economic growth, service delivery and workforce development, requiring critical evaluation.
Research approach/design and method: The article used a qualitative research approach with an interpretivist paradigm, guided by labour market theory. A multiple-case study design on the Local Government Sector Education and Training Authority (LGSETA) and Health and Welfare Sector Education and Training Authority (HWSETA) was employed. Data were collected through semi-structured interviews with stakeholders and document analysis, and were analysed thematically.
Main findings: Skills planning in South Africa remained predominantly supply-driven, relying on weak and fragmented data from Workplace Skills Plans and Annual Training Reports. This approach inadequately captures employer demand, leading to skills mismatches and graduate unemployment.
Practical/managerial implications: The study emphasised the need for stronger labour market intelligence, improved stakeholder coordination and demand-driven skills forecasting to enhance SETA interventions’ effectiveness.
Contribution/value-add: The article contributed to public sector and skills development literature by demonstrating how data-informed, demand-driven skills planning can improve alignment between education and employment, offering evidence-based insights for policy reform in South Africa.