Increased global hiring and talent shortages bode poorly for SA critical skills

A more than 33% global net employment outlook is being impacted by the highest levels of worldwide talent shortages in 16 years.

This is according to the ManpowerGroup’s Employment Outlook Survey for Q3, 2022.

“This means more international competition for South African employers desperate to attract critical skills from abroad,” says Marisa Jacobs, Managing Director of visa and expatriate services firm Xpatweb.

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The survey indicates that South Africa exhibits the second strongest hiring intention (38%) among European, Middle Eastern and African (EMEA) countries, after Ireland (42%). However, 78% of local employers reported talent shortages resulting in difficulties filling positions.

The global labour gap also creates greater opportunities for skilled South Africans to emigrate to greener pastures, further eroding the country’s talent base.

Less red tape

Jacobs says that companies who identify foreign talent must act quickly to hook them and cannot afford to be held up by bureaucratic immigration processes that delay entry into the country.

“So, it is more important than ever that employers actively involve themselves in the development of legislation around critical skills to prevent the build-up of unnecessary red tape.

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“Regulations should be fair to South Africans but also pragmatic about the availability of specialised professionals locally. New bills, like the Employment Services Amendment Bill 2022, seek to regulate the hiring of foreign nationals more closely while acknowledging the need to accommodate foreign critical skills,” she said.

Policy needs to meet needs of critical skills employers

This is only possible when the needs of critical skills employers are well known to policymakers.

“By making their voices heard, employers can be instrumental in a more meaningful and streamlined process for importing foreign talent,” she added.

Xpatweb has run its Critical Skills Survey annually since it was first launched in 2017. Over time, its survey data has become recognised as an authoritative reference among policymakers.

The firm was asked to present its 2020/21 findings to the Department of Higher Education and Training (DHET) and other participants involved in developing the Occupations in High Demand (OIHD) list. Its data was also referenced both directly and indirectly in compiling the national Critical Skills List, published in February 2022, and amending the final version, published in August 2022.