South African economists and researchers now believe that the skills shortage is South Africa's biggest challenge. Emigration, early retirement and resignations because of deteriorating working conditions are said to be the cause of the skills shortage. Azar Jammine, chief economist for Econometrix, said that companies were being forced to use under-qualified and inexperienced staff, resulting in lowered standards. According to the National Remuneration Guide, published by Deloitte and Touche in February, about 81% of companies experienced difficulties in recruiting staff because of the skills shortage. The Department of Home Affairs issued 641 work permits between April and July this year to skilled foreigners seeking employment in South Africa. Last year 1133 permits were issued. According to the 2007 National Scarce Skills list, published by the Department of Labour, the country needed more than 252 000 farm managers and more than 220 000 farm workers.
There were also posts for 51 110 teachers, as well as more than 17 000 university and college lecturers, private tutors and teachers, second-language English teachers, and adult education and training instructors. More than 20 700 health and welfare support workers are needed, along with more than 25 000 health diagnostic professionals, and midwives and nurses. The list showed that in short supply were more than 13 470 construction, distribution, production and operations managers; over 10 600 engineering professionals such as chemical engineers, civil engineers, electrical, industrial, mechanical and mining engineers; 10 755 building and engineering technicians; 7 620 mechanical engineering workers, such as aircraft technicians and toolmakers; 15 835 fabrication engineering-trades workers, such as welders and sheet-metal workers; and more than 12 800 other technicians and trades workers, including chemical, gas, petroleum and power generation plant operators.
