/ 11 March 2011

Youth subsidy working in Western Cape

Youth Subsidy Working In Western Cape

As the government battles the unions over the terms for a youth wage subsidy, a working example of a programme to employ young people is up and running in the Western Cape.

Joel Jenkins is one of more than 1 000 young people recruited through the Work and Skills for 100 000 programme, which is run by the provincial department of economic development and tourism.

The programme recruits young people, who are placed with a “host employer” for a year, with a minimum of 12 weeks dedicated to skills development. They are each assigned a mentor for the 12-month period and paid a stipend of R1 000 a month, which employers are encouraged to top up. While working they can apply for permanent positions that become available at the host employer.

After matriculating in 2009 from Rocklands High in Mitchells Plain, Jenkins heard of the programme by word of mouth and submitted his CV to the provincial government. He was taken on during 2010. Now he is employed at life insurance giant Momentum as a personal assistant and office manager and is moving into consulting as he learns the business. He is considering taking up tertiary studies in finance.

Jenkins originally wanted to become a fire fighter but he has not regretted his decision to join the programme. “I would definitely recommend it,” he says. “The opportunities are endless if you
are committed.”

70% of Western Cape youth unemployed
Youth unemployment, between the ages of 15 and 34, in the Western Cape is 70%, said Alan Winde, the finance MEC in the Western Cape.

“We invest R10-million in this Work and Skills for 100 000 programme every year. More than 1 000 interns have come through the programme, many of whom have since been offered full-time employment,” he said.

The programme targets young people, usually with a matric, who have been unemployed for two or more years. Work placements are sourced from the private sector in companies such as KWV, the Cape Town International Convention Centre and Prestige.

Recruits are given a week-long induction to the programme, which includes occupational health and safety training, personal finance management, HIV/Aids awareness and administrative skills training. There is also a toll-free help desk dedicated to trainees who experience any work-related, social or personal
problems.

Winde said the programme was a joint effort between the provincial government and the private sector. “We have pooled our skills and resources to promote a better opportunity than we could have offered alone.”

He said the province plans to access the R9-billion jobs fund detailed in Finance Minister Pravin Gordhan’s national budget for similar programmes driven by public-private partnerships.

When the programme began in 2009, it experienced teething problems with a high drop-out rate owed chiefly to a lack of support structures for candidates and difficulties with the selection process.

But, according to Mark Apollis, the manager for workforce development in the department, recruitment processes have been improved and refined. He said the induction programme was also refined to ensure that learners have a clear understanding of what is expected of them, what they can expect and what the time frame and stipend for the period will be.

Industry bodies chip in
Industry bodies have also become involved in the programme. They include the South African Oil and Gas Alliance, the Cape Town Boat-building Initiative and the Western Cape Tooling Initiative, which represent the maritime and manufacturing sectors.

The involvement of bodies such as these allows the private sector to communicate the needs and opportunities available in the different sectors, which the programme can then match with available candidates.

Rahima Loghdey, the director for workforce development and innovation at the department, said: “Industry plays a significant role in the success of the programme and, without the support of industry, this programme will fail hopelessly.”

Other state entities — such as the sectoral education and training authorities (Setas) — have also come on board, she said.

“Our department focuses on the priority sectors that were determined by the [province’s] microeconomic development strategy. These are sectors that are the growers of the economy and they include tourism, oil and gas, boat-building, tooling [and] creative industries. The skills sets in maritime and tooling, for example, are cross-sectoral and will benefit manufacturing.

“Agri-processing is a new priority of the province, which will be included in future.”

Less demand from rural areas
Although about 50% of candidates come from rural areas, the demand from rural areas is less extensive.

“It must be mentioned that it is very difficult to find placement opportunities for learners from rural areas as there is simply not a large pool of host employers out in rural areas,” said Loghdey.

Also, the skills available in rural areas need to be grown to meet the demands of industry. But, Loghdey said, with the help of the Setas more candidates are being placed in sectors such as wholesale and retail.

Despite the big-name participants involved as host employers, the majority of the businesses participating, about 60%, are small or medium-size enterprises, with 10 people or fewer working for them.