The Higher Education Sector’s Articulation of Graduate Unemployment in South Africa Is Still Underdeveloped
The postsecondary education system in South Africa has experienced notable expansion in recent times, leading to a rise in accessibility. For a long time, the industry has been seen as essential to the social and economic mobility of its people. But even with the tremendous progress that has been made in increasing access to postsecondary education, the problem of graduate unemployment still exists.
Concerning trends that have emerged in South Africa in recent years: more and more people are finding it difficult to secure good jobs after graduating. Recent data indicates that South Africa’s startlingly high graduate jobless rate is still present. According to Statistics South Africa’s Quarterly Labour Force Survey, the unemployment rate for university graduates between the ages of 15 and 34 was an astounding 33.6% in the first quarter of 2023. This suggests that about one in three of these age group’s university graduates are having trouble finding work. Numerous causes, such as a mismatch between the skills learned in school and those required by the labor market, a lack of work experience, and a slow-growing economy with little job creation, can be blamed for this issue.
The mismatch between the skills acquired during higher education and the skills needed by industry is one of the main causes of graduate unemployment. The economy of South Africa is changing quickly, and industries there are in high demand for highly specialized knowledge and abilities. Unfortunately, some academic programs and curricula at universities have not changed to keep up with these shifting expectations, which has led to a mismatch between the needs of the business and graduates’ capabilities. A Human Sciences Research Council (HSRC) survey found that about 31% of South African companies cited graduates’ lack of skills as a major deterrent to hiring them.
The prevalence of skill mismatch among graduates is further highlighted by data from the Department of Higher Education and Training. In 2022, a Department of Higher Education and Training study found that approximately 38% of graduates who were working reported that their positions did not require the credentials they had earned. Grads struggle to obtain jobs after graduation because of discrepancies between the expectations of the labor market and their educational background.
In actuality, the economy in South Africa is not keeping up with the rate of graduation. The unemployment of a highly skilled labor force will directly decrease with the closure of the demand-supply imbalance. Given that talents are not exported, this will help create a skilled labor pool that the country’s innovation system can use. To guarantee that graduates have the necessary skills for the labor market, there is an urgent need to better match educational curricula with industrial requirements. Colleges and universities need to work with industry partners to find new skills that are needed and add them to the curriculum in order to solve this problem. University graduates can be guaranteed to have the necessary skills and knowledge by cultivating partnerships and periodically evaluating and revising curriculum offerings.
A further difficulty for recent grads is their dearth of real-world work experience. It is challenging for recent grads to get jobs because many firms demand candidates to have relevant experience.
According to statistics, only over 8% of South African university graduates have taken part in work-integrated learning or internships throughout their studies (Department of Higher Education and Training, 2022).
The field of higher education is aware of this problem and has taken action to solve it. To close the gap between academia and industry, partnerships with businesses to provide internships, work-integrated learning programs, and cooperative education projects are being aggressively encouraged. Through these programs, students get invaluable experience in real-world work settings, which helps them to build networks, acquire industry-specific skills, and improve their employability.
Self-employment and entrepreneurship have become more important among graduates due to the lack of conventional work options. In 2021, 13.1% of adults in South Africa were involved in early-stage entrepreneurship, according to the Global Entrepreneurship Monitor (GEM), which documented an increase in entrepreneurial activity in the country. Also, over the last five years, the number of university graduates working for themselves has grown by about 25%, according to data from the Small Enterprise Development Agency (SEDA) (SEDA, 2022). This highlights South African graduates’ entrepreneurial potential and tenacity as they look for different career paths to open up their own businesses.
Acknowledging this potential, universities are placing a greater emphasis on entrepreneurship education and related services, enabling graduates to take charge of their own prospects and use innovation and entrepreneurial endeavors to promote economic growth. Universities may impart the information and abilities required for graduates to launch their own enterprises by including entrepreneurship courses into the curriculum, encouraging an entrepreneurial mindset, and offering mentorship and incubation support. Furthermore, working together with regional financing agencies, incubators, accelerators, and other entrepreneurial ecosystems may give budding business owners the tools and direction they need to be successful.
Collaboration amongst multiple parties is necessary to address graduate unemployment. In response to realizing how urgent this problem is, the South African government launched initiatives like the Youth Employment Service and the National Development Plan. The objectives of these efforts are to foster entrepreneurship, improve skill development, and encourage job creation. The South African government has been actively involved in cooperative endeavors with other stakeholders to address unemployment and enhance the employability of the working force. These collaborations—involving professional associations, higher education institutions, and industry—seek to build an atmosphere that fosters employability skill development, offer mentorship and internship opportunities, and match curriculum with industry demands. These stakeholders are significantly improving graduate employability by combining their resources and expertise.
The National Development Plan (NDP), which was introduced in 2012, is one of the noteworthy projects carried out by the South African government. In addition to containing precise goals and tactics to combat unemployment, the plan offers a long-term vision for the socioeconomic development of the nation. The New Democratic Party (NDP) places significant emphasis on improving education and skill development, encouraging investment, and boosting entrepreneurship. The administration wants to create jobs and provide a foundation for sustainable economic growth with this all-inclusive plan. The Youth Employment Service (YES) is another
noteworthy example of a partnership between the public and commercial sectors. Young people between the ages of 18 and 35 are to be allowed to gain a year of work experience through YES. Through collaboration with companies, governmental bodies, and civil society organizations, YES seeks to enhance your employment in the country.
The South African government formed Sector Education and Training Authorities (SETAs) to address the skills shortages in several areas of the economy. These sector-specific organizations work in conjunction with trade unions, businesses, and academic institutions to pinpoint the skills that are missing from the market, create pertinent training curricula, and finance activities aimed at enhancing abilities. To guarantee a skilled workforce, the goal is to provide people with the skills that employers require. The government has promoted collaborations between academic institutions and business sectors because it understands the importance of working with these establishments. These partnerships provide internship and work-integrated learning opportunities, promote entrepreneurship education, and help connect curricula with industry requirements. These alliances seek to empower by combining the knowledge and assets of the public and private sectors.
Encouraging small and medium-sized businesses (SMEs) has been the South African government’s main goal. Entrepreneurs can receive assistance from organizations like the Small Enterprise Development Agency (SEDA), which was founded to give them access to funding, mentorship opportunities, and company development services. The government has also put measures into place to ease rules and encourage the expansion of SMEs since these companies are acknowledged as essential to the generation of jobs. PPPs, or public-private partnerships, have also been essential in tackling South Africa’s unemployment problem. PPPs have aided in the conception and execution of programs centered on entrepreneurship, skill development, and job creation by bringing together enterprises, government agencies, and civil society organizations. These collaborations utilize the pooled knowledge, assets, and networks of both industries to produce a shared effect.
In conclusion, the higher education system is still developing its understanding of graduate unemployment in South Africa. Even though industry, government, and professional associations have worked together to make great progress, there is still more that needs to be done to close the skills gap that graduates face in the job market. To further improve graduate employability and lower unemployment rates, continued dedication and creativity are required. South Africa will make great strides toward improving the conditions that enable graduates to enter the labor market and contribute to the socioeconomic growth of their country if they work diligently and cooperatively.
Bongiwe Charlotte Khumalo is an educator and researcher focusing on the higher education sector in South Africa. She writes in her personal capacity
