Last week we looked at an observation that explored the ways our GenZs are augmenting their income but in this observation we discover that even if they are educated or experienced they are still unemployed. This echoes the concerns about the kind of future this generation will have.
What do these insights from the 30/30/30 Project mean for the growth and sustenance of this nation? Does South Africa have a future, when that future can’t even get a return on their investment in education?
Continue reading to find out more.
What we learnt:
7 (23%) individuals are unemployed.
| Gender | Race | Side hustle | Education | Educational institution | Course |
| F | Black | Photography | College | Boston Media House | Film production & Auxiliary Nursing Certificate |
| F | Black | n/a | High school | n/a | Matric |
| M | White | Selling boats | University | n/a | Honours in Economic Science |
| F | White | Selling used items from old people | University | UJ, WIts Business School | Honours in Psychology, PDM |
| M | Black | Creative agency | University | n/a | Business Entrepreneurship |
| F | Black | n/a | University | n/a | Public Relations |
Five of the seven interviewees are unemployed and have a university degree, suggesting a poor ROI for highly educated individuals. 4 out of the 7 have side hustles, explored in the ‘Main gig & side hustles’ observation. This data is different in that there is no main gig.
“So when we look at the education system, I think you can look worldwide. I don’t think most countries have an education system that has kept up with the changing workforce needs and skills that are required, and South Africa certainly suffers from this to a much deeper extent. If you look at the basic education system, it’s almost like the starting ground of our country. Was it about grade four, almost 80% of our 12-year-olds cannot read? So if you think of that, you think of who actually gets to matric.” – Bronwyn Williams
“And when that sort of happiness expectation [of finding employment] turns into a deficit, that’s when you have a lot of disruption in society.” – Bronwyn
“The huge opportunity there is I think for young people to become globally relevant and they can live inside of SA and earn dollars or at least work for many corporations that are looking for our skills. We’re English-speaking. We’re in a European time zone, and they can use their skills accordingly.” – Ronen
What does the research/experts say:
The employment prospects of graduates have become a topic of increasing concern in South Africa, with soaring unemployment rates. As of the fourth quarter of 2023, the unemployment rate in South Africa stood at 32.1%. Youth unemployment is significantly higher at 59.4%. While the young graduate unemployment rate is 30.% as of Q1 2023, which is lower than the overall youth unemployment rate, this is still a cause for concern and discussion.
Possessing a tertiary education, especially a degree, enhances the likelihood of securing employment. One would expect a much lower unemployment rate for this cohort, raising the question, “Why is this happening?” Many commentators posit that education is not adequately preparing the youth for the labour force. Interestingly, the field of study with the lowest unemployment is Education and Health, while the highest are Administration, Arts and Social Sciences.
Graduates are angry because many feel that they have been sold the dream of guaranteed employment after graduation and that the government has failed them. Daily Maverick reported in June 2022 that in Mthatha – Eastern Cape – some graduates push trolleys to earn a living. In April 2024, a Mzansi woman who graduated four times posted a heartbreaking video on TikTok about her unemployment struggles. In March 2024, unemployed doctors marched to the Department of Health in Kwazulu-Natal to demand employment. “For my survival, it’s not easy. Currently, I’m still hustling, looking for a job but I sell sweets and energy drinks in the meantime. I have to keep busy. I have to keep moving otherwise if I sit still I’m going to fall into depression. I don’t want to be like these guys on the corners doing drugs and falling into the wrong things. The money I make isn’t even enough to buy electricity but I have to keep moving,” says Luntu Taule who has an Advanced Diploma in Logistics.
A contributing factor is the mismatch between the types of workers supplied and the types of labour demanded. There is a gap between the skills taught by tertiary institutions and the skills employers want. Many educational institutions have been slow to adapt to the changing needs of the job market. Graduate unemployment is also a part of a broader issue of a stagnant labour market. Globalisation has also played a role. Companies are now able to source labour from anywhere in the world, which has resulted in a decrease in the demand for workers in many countries. Not wanting to be underemployed (where a job is lower by some standard, be it working hours, income or skills and qualifications), some wait for stable and satisfactory employment.
What can businesses and policymakers do about this?
Collaboration amongst multiple parties is necessary to address graduate unemployment. Governments and employers must work together to provide individuals with the skills and opportunities relevant to the current job market.
Students should select their field of study with utmost care. Comprehensive career guidance should begin during their school years and would be pivotal in channelling students into fields experiencing shortages or increased demand. Our educational system needs to be more practical. Vocational education may yield more employment opportunities, for example. There is an urgent need for better matches between educational curricula and. industrial requirements. Tertiary institutions need to work with industry partners to find the skills required for the future of work and add them to the curriculum. Graduates would have the necessary skills and knowledge by educational institutions cultivating partnerships with industry and periodically evaluating and revising curriculum offerings.
Employers also need to play their part by providing opportunities for young people to develop their skills and knowledge. These opportunities could include internships, work-integrated learning programs, and cooperative education projects. Many graduates end up in self-employment and entrepreneurship due to the lack of conventional work options. Entrepreneurship should also form part of the educational journey. Tertiary institutions should emphasise entrepreneurship education and related services so that those running their businesses have the skills and tools to do so successfully. The South African government must encourage small and medium-sized business (SME) development and growth.
Even though industry, government, and professional associations have worked together to make progress, there is still more that needs to happen to close the skills gap that graduates face in the job market.
By Flux Trends
All the data and quotes mentioned above refer to a project that we are in the midst of, in conjunction with Student Village called “The 30/30/30 Project” whereby we collected insights from 30 South Africans, under the age of 30, 30 years into our new democracy.
WHERE TO FROM HERE?
Use these and many more insights from the 30/30/30 Project Report to BUILD your team, by booking a Bridgebuilder™ Workshop.
Close the generation gap and dive into the future of work and how to manage it.
There is a 15% discount for booking this workshop for September 2024.
Contact Bethea Clayton at connected@fluxtrends.co.za or +27764539405, to claim your discount!
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Image credit: Brad Neathery
