PAUL MASHATILE | HRDC champions human resource development for a prosperous and inclusive economy

The recent launch of the North West Human Resource Development Council (HRDC) is more than just a ceremonial milestone. It is timely and essential as South Africa confronts escalating skills mismatches and the pressing necessity for inclusive economic growth.

The trajectory of South Africa's inclusive economic growth depends on resolving the significant skills gap and synchronising its labour supply with the requirements of a cutting-edge globalised economy. This is to ensure that our economy remains competitive, encourages entrepreneurship and generates employment opportunities.

Across the globe, the evidence is unequivocal: nations that prioritise strategic investments in skills development enjoy stronger productivity, higher rates of employment and more equitable growth. Skills are more than just tools for personal growth; they are catalysts for national transformation.

In South Africa, however, the disconnect between skills supply and labour market demand has become an increasingly costly economic constraint. This is compounded by the fact that the labour market is shifting from low- to medium- and high-skilled roles, yet many citizens are not equipped to make this transition.

The implications of this disconnect can be traced to the country's high unemployment rates. According to the latest data from Stats SA, youth unemployment in the first quarter of 2025 stood at a staggering 46.1%. Within the age group of 15—24, the unemployment rate soars above 62%. Among those who are unemployed, nearly 59% have never had any work experience. This paints a picture of a generation trapped in a vicious cycle — shut out of the job market for lack of experience and unable to gain experience without a job.

Meanwhile, more than 60% of businesses in South Africa report that critical skills shortages are the most significant barrier to transformation. This means our education and training systems are not producing the kinds of skills the economy needs for effective transformation. This crisis demands a collaborative, co-ordinated and data-driven response.

Our mission is clear: to build a workforce that is not only skilled but also adaptable, resilient and globally competitive.

It’s in this regard that the HRDC provides a platform to respond decisively. It allows government, industry, organised labour and the education sector to work together to close the gap between what we teach and what the economy demands.

This is especially urgent in a province like the North West, which holds immense potential in sectors such as mining, agriculture and agro-processing, cultural tourism, green energy and advanced manufacturing. However, these industries struggle to acquire the skilled labour they need — while thousands of young people remain jobless.

To address this, we must do three things simultaneously. First, we must equip South Africans with adaptable, transferable skills that meet both local and global standards. This ensures mobility, resilience and competitiveness in a rapidly changing labour market.

Second, we need to prioritise building entrepreneurial skills to foster economic growth and create jobs. We must ensure that entrepreneurship is incorporated in the national curriculum and tertiary institutions to create an environment that encourages entrepreneurship. In addition, private and public sector partnerships should be the key to training emerging entrepreneurs on basic skills.

Last, we must align training with the specific needs of the provincial economy. In mining, this could mean training for both mechanised extraction and downstream beneficiation. In agriculture, it might involve climate-smart farming, food processing and co-operative business skills. In tourism, we need a workforce prepared for digital transformation and heritage-based enterprise development.

The Fourth Industrial Revolution, climate change and the reshaping of global value chains have redefined the skills profile required in today’s economy. But we cannot chase global trends at the expense of local priorities. Skills development must be contextually grounded and strategically focused.

This is where partnerships become essential. The HRDC serves as a hub for fostering collaboration across government departments, TVET colleges, universities, Setas, municipalities and the private sector. Enterprise-based training, where companies actively offer structured, on-the-job learning, is one of the most effective ways to prepare graduates for real-world challenges.

Countries that perform well in workforce development are those that pursue high-skill equilibrium, in which government, business and labour jointly invest in improving workforce competencies across all sectors.

The HRDC has brought together various sectors of society to address challenges related to areas where qualifications exist but graduates lack skills valued by employers, where people have the skills but are unwilling to accept jobs due to pay or conditions, and where skills can be developed quickly if training capacity is responsive.

We are further accelerating development to match supply and demand for a skilled workforce. Our approach is diverse, as it should be, encompassing both high and intermediate skills development. We intend to have an impact on all institutions, policies and processes within and outside government systems, including public and commercial enterprises, as well as NGOs.

The HRDC must become a diagnostic and solutions centre. Its responsibilities include forecasting labour market trends, co-ordinating responses to shortages and ensuring targeted and effective training interventions. This also means strengthening the National Qualifications Framework to make qualifications more transparent, portable and aligned with both national and cross-border employment opportunities.

To support this vision, government is already rolling out reforms. Through the Skills Strategy for the Seventh Administration for instance, we are establishing sector-based skills councils to identify shortages and fund training in growth industries. Setas will be refocused to support workplace training, and Operation Vulindlela will be leveraged to remove bureaucratic bottlenecks in skills planning and employment placement.

Our mission is clear: to build a workforce that is not only skilled but also adaptable, resilient and globally competitive. A platform for implementing these strategic interventions lies at the provincial level; hence, the launch in North West.

But for this to work, we must commit to a new social compact on skills. Employers must help shape curricula. Labour unions must champion lifelong learning. Government must provide the enabling environment. Communities must play their part in creating demand and supporting local training efforts.

All sectors of society must be deliberate in action and invest in our people with the same urgency we demand for infrastructure or trade. We have to build North West — and the whole of South Africa — where every young person has a fair shot at employment, every business can find the talent it needs, and every province can contribute meaningfully to national transformation.

The launch of the North West HRDC is thus a call to action. It is the beginning of a new chapter in building an economy driven by knowledge, supported by partnerships and anchored in inclusive development.

• Deputy President Paul Mashatile is the chairperson of the Human Resource Development Council of South Africa

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