Construction World July 2023

COMMENT

T he research found that up to 80% of business leaders surveyed, list the loss of skills due to emigration as a major risk facing their company. Since the survey was done, it appears that emigration is accelerating as conditions in the country get worse – almost on a daily basis – with electricity, water, economic and political problems. Playroll found that over 900 000 South Africans have already left the country. This number was published in 2022 by the UN Department of Economic and Social Affairs’ 2020 International Migrant Stock. This report states that 914 901 South Africans were living in other countries and territories – a dramatic increase of the 786 554 in 2015. Even before the current woes that are experienced in the country, the number of people that emigrated increased threefold between 2015 and 2020. Individuals emigrating leave our shores for England, Australia, the USA and New Zealand. What is especially worrying is that the survey has found that it is younger people leaving – very often professional people who have either recently graduated or stayed just long enough to complete graduate programmes. This is the very generation who is lost to solving the country’s problems. Among these are engineers who can assist with the very problems that are driving them away: infrastructure collapse and the energy and water crisis. That is before one even comes to the individuals with the skills to assist with an exploding urbanisation and the planning for this. The people most likely to leave the country are aged between 25 and 40 and it forecasts that over 50% of future graduates will leave the country in future. Individuals who classify as ‘senior employees’ will relocate within the borders of South Africa - most likely

Recent research has shown that

the South African skills shortage runs far deeper than industry-specific shortages portray. I am referring to research done by Playroll and OfferZen.

to live, roads to drive on, water to drink, hospitals to go to and lights to switch on. Despite the expertise leaving the country in now (seemingly) droves, my suspicion is that they will be back as there will be opportunity here – perhaps just not right now.

to a well-run and stable province such as the Western Cape – simply because they have the financial means to do so. The research takes the most recent tax data into account. As there is no official government data on emigration, the number of South African taxpayers who have ended their tax residency in the country provides a rather accurate (if dooming)

Wilhelm du Plessis Editor

insight into these trends. Data shows that over the last five years, over 40 500 taxpayers have ended their tax residency. The base from which SARS collects tax is now lower income earners. The survey showed that while most companies considered C-Suite and management tiers as the most vulnerable to emigration, tech-focused (such as construction) businesses perceived the threat at an associate level. It is a worrying trend, but one has to keep in mind that the 60 million people in the country will still need places

EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & GRAPHIC ARTIST

PUBLISHER Karen Grant

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2 CONSTRUCTION WORLD JULY 2023