According to the latest Quarterly Labour Force Survey (QLFS), 2nd Quarter 2016, the unemployment rate stands at 26, 6%. Youth unemployment rate remained high at 37, 5%. This means that there is approximately 3, 2 million young persons aged between 15-24 who are not in employment, education or training.
The International Monetary Fund working paper titled, South Africa: Labour Market Dynamics and Inequality present interesting findings that have implications for SAIBA and its constituency.
The report indicated that people with prior work experience have almost 50% higher job-finding rate than those without. It also found out that people with higher education have a significantly lower job-exit rates. Young people (and woman) have low job-finding rates and have high job-exit rates.
Implications are that, increasing educational outcomes is critical, however, it appears that providing youth with work-place experience may lower employment rate in this sector.
The above underscores the value of workplace-based training and Continuous Professional Development (CPD). In a competitive environment, companies are geared towards reducing costs and increasing productivity. Properly trained employees enable companies to offer more value to customers and thus attract more income.
SAIBA members and constituencies that are in a position to place learners when requested by SAIBA or through their own initiatives are contributing to the broad economic development of the country.
SAIBA fosters lifelong learning and enable members to cope with technological change, keep abreast of development in their area of expertise.
The exposure of young people and the up-and-coming Business Accountants to workplace training will enable them to participate meaningful in the economy of the country and reduce the unemployment rate.
The above reports indicate that more needs to be done as far as unemployment of young people is concerned. Efforts need to be doubled in order to ensure that appropriate workplace training and CPD activities are undertaken on a consistent basis.