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Graduate Unemployment In The Face Of Skills Shortages: A Labour Market Paradox1

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  • K. Pauw
  • M. Oosthuizen
  • C. Van Der Westhuizen

Abstract

Analysts agree that South Africa's unemployment is structural in the sense that the unemployed generally possess lower skills than what is required by the economy. In the context of increasing demand for skilled workers due to technological changes and the need to become globally more competitive, graduates would be expected to find employment without difficulty. However, against expectations unemployment has been increasing among young people with tertiary qualifications since 1995. This paper investigates the nature of this phenomenon. Evidence suggests that learners are inadequately prepared for both tertiary studies and entry into the labour market. Lack of, or inadequate career guidance means that they do not choose fields of study and types of qualifications with good employment prospects. In addition, lack of soft skills and workplace experience mean that employers are reluctant to employ graduates, preferring more experienced people instead.

Suggested Citation

  • K. Pauw & M. Oosthuizen & C. Van Der Westhuizen, 2008. "Graduate Unemployment In The Face Of Skills Shortages: A Labour Market Paradox1," South African Journal of Economics, Economic Society of South Africa, vol. 76(1), pages 45-57, March.
    • Handle: RePEc:bla:sajeco:v:76:y:2008:i:1:p:45-57
    DOI: 10.1111/j.1813-6982.2008.00152.x
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    References listed on IDEAS

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    1. Charlton Koen, 2003. "The Contribution of Technikons to Human Resources Development in South Africa," Working Papers 03080, University of Cape Town, Development Policy Research Unit.
    2. Morne Oosthuizen, 2006. "The Post-Apartheid Labour Market: 1995-2004," Working Papers 06103, University of Cape Town, Development Policy Research Unit.
    3. Rulof Burger & Ingrid Woolard, 2005. "The State of the Labour Market in South Africa after the First Decade of Democracy," SALDRU/CSSR Working Papers 133, Southern Africa Labour and Development Research Unit, University of Cape Town.
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    Cited by:

    1. Derek Yu, 2008. "The South African labour market: 1995 – 2006," Working Papers 05/2008, Stellenbosch University, Department of Economics.
    2. Derek Yu, 2013. "Youth unemployment in South Africa since 2000 revisited," Working Papers 04/2013, Stellenbosch University, Department of Economics.
    3. Boccanfuso, Dorothée & Larouche, Alexandre & Trandafir, Mircea, 2015. "Quality of Higher Education and the Labor Market in Developing Countries: Evidence from an Education Reform in Senegal," World Development, Elsevier, vol. 74(C), pages 412-424.
    4. Daniela Emanuela DĂNĂCICĂ, 2023. "The Effect of Academic Specialization on Unemployment Spells and (Re) Employment Hazard of Highly Educated Individuals in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 91-106, March.
    5. Burns, Justine & Edwards, Lawrence & Pauw, Karl, 2010. "Wage subsidies to combat unemployment and poverty," IFPRI discussion papers 969, International Food Policy Research Institute (IFPRI).
    6. Bacalhau, Priscilla & Mattos, Enlinson & Ponczek, Vladimir Pinheiro, 2019. "College quality signaling and individual performance: effects on labor market outcomes after graduation," Textos para discussão 502, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    7. Servaas van der Berg & Hendrik van Broekhuizen, 2012. "Graduate unemployment in South Africa: A much exaggerated problem," Working Papers 22/2012, Stellenbosch University, Department of Economics.
    8. Hayley McEwen & Anthony Leiman, 2008. "The Car Guards of Cape Town: A Public Good Analysis," SALDRU Working Papers 25, Southern Africa Labour and Development Research Unit, University of Cape Town.
    9. Fox, Stephen, 2016. "Leapfrog skills: Combining vertical and horizontal multi-skills to overcome skill trade-offs that limit prosperity growth," Technology in Society, Elsevier, vol. 47(C), pages 129-139.
    10. Sumberg, James & Anyidoho, Nana Akua & Chasukwa, Michael & Chinsinga, Blessings & Leavy, Jennifer, 2014. "Young people, agriculture, and employment in rural Africa," WIDER Working Paper Series 080, World Institute for Development Economic Research (UNU-WIDER).
    11. Usha Devi Chuttoo, 2020. "Effect of Economic Growth on Unemployment and Validity of Okun’s Law in Mauritius," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 12(2), pages 231-250, May.
    12. Hélène Maisonnave & Bernard Decaluwe & Margaret Chitiga, 2016. "Does South African Affirmative Action Policy Reduce Poverty? A CGE Analysis," Poverty & Public Policy, John Wiley & Sons, vol. 8(3), pages 212-227, September.
    13. Vuyokazi Pikoko & Andrew Phiri, 2019. "Is There Hysteresis in South African Unemployment? Evidence from the Post-Recessionary Period," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 15(3), pages 365-387, JUNE.
    14. Frederick C.v.N. Fourie, 2011. "The South African unemployment debate: three worlds, three discourses?," SALDRU Working Papers 63, Southern Africa Labour and Development Research Unit, University of Cape Town.
    15. Lucilla Maria Bruni & Jamele Rigolini & Sara Troiano, 2016. "Forever Young?," World Bank Publications - Reports 24996, The World Bank Group.
    16. Precious Mncayi & Phindile Mdluli, 2019. "Why are they not looking for employment? A South African Youth Perspective," Proceedings of International Academic Conferences 9912247, International Institute of Social and Economic Sciences.
    17. Daniela-Emanuela D?n?cic?, 2017. "Higher Educated People And (Re)Employment Probability In Romania," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(45), pages 82-94, November.
    18. Aakanksha & Narendra Kumar Bishnoi, 2024. "Education and earnings: examining the returns across regular, casual, and self-employed labour markets," SN Business & Economics, Springer, vol. 4(6), pages 1-21, June.
    19. Alexandre Larouche & Dorothée Boccanfuso & Mircea Trandafir, 2011. "The impact of the PDEF on the labour market outcomes of «high-skilled» workers in Senegal," EcoMod2011 3572, EcoMod.
    20. Walter, Odongo & Stephen, Wamala Kalule & Enos, Katya Kule & Elly, Ndyomugyenyi & Duncan, Ongeng, 2017. "Responsiveness of agricultural training curricula in African universities to labour market needs: the case of Gulu University in Uganda," African Journal of Rural Development (AFJRD), AFrican Journal of Rural Development (AFJRD), vol. 2(1), March.
    21. Hendrik van Broekhuizen, 2016. "Graduate unemployment and Higher Education Institutions in South Africa," Working Papers 08/2016, Stellenbosch University, Department of Economics.
    22. Derek Yu, 2012. "Youths in the South African labour market since the transition: A study of changes between 1995 and 2011," Working Papers 18/2012, Stellenbosch University, Department of Economics.
    23. James Sumberg & Nana Akua Anyidoho & Michael Chasukwa & Blessings Chinsinga & Jennifer Leavy & Getnet Tadele & Stephen Whitfield & Joseph Yaro, 2014. "Young People, Agriculture, and Employment in Rural Africa," WIDER Working Paper Series wp-2014-080, World Institute for Development Economic Research (UNU-WIDER).

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