Key drivers of skills demand and supply in South Africa

Skills imbalances are driven by structural and cyclical factors that shape the demand for and supply of skills. For instance, economic growth, changes in the composition of economic output over time and the so-called mega-trends are all important macroeconomic factors influencing the demand for skills. On the other hand, labour market trends, migration, and skills and education outcomes play an important role in defining the supply of skills. The main drivers of skills demand and supply in South Africa are discussed in this chapter, together with the current state of skills imbalances.