Unemployment in South Africa continues to rise, and graduates are not immune. The latest figures show that the graduate unemployment rate has jumped from 8.7% in 2023 to 11.7% in 2024. While this is significantly lower than the general unemployment rate of 34.9% for matriculants and 39% for those without a matric, it still raises concerns about the disconnect between higher education and the job market.
Despite this worrying trend, experts argue that the problem isn’t the value of education but rather how education is delivered, what it focuses on, and whether it equips graduates for real-world challenges.
Unemployment solutions begin with economic growth
To truly curb graduate unemployment, the broader economy must grow. South Africa needs an annual growth rate of at least 3% to absorb new graduates effectively. However, instead of waiting for economic recovery, there’s an urgent need to empower graduates with skills that allow them to create their own opportunities.
A proactive approach is required; one that prepares students to become not only job seekers but job creators.
Curriculum reform must meet job market demands
A major contributor to graduate unemployment is outdated university curricula. Many degrees remain unchanged despite shifts in the global workforce. Curricula need urgent updates to match the rapid developments in sectors such as artificial intelligence, information technology, and cybersecurity.
Digital literacy, soft skills, and entrepreneurial thinking should be integral to all programmes. As it stands, too many graduates lack digital fluency, a non-negotiable requirement in today’s economy.
Closing the unemployment gap through industry collaboration
Forging meaningful partnerships between higher education institutions and industry is another key step. While vocational sectors benefit from tax incentives to encourage collaboration, universities often lack such motivation. As a result, many companies end up retraining graduates through bridging programmes, a costly and time-consuming process that could be avoided with earlier engagement.
Strategic industry partnerships could give students access to real-world tools, updated training, and insight into what the market truly needs.
Work-Integrated Learning: bridging study and employment
Hands-on experience is one of the most effective ways to reduce graduate unemployment. Work-Integrated learning (WIL) allows students to gain practical knowledge and insight into the world of work. Whether through internships or simulation labs on campus, WIL boosts employability dramatically; even a single year of experience can make a substantial difference.
Universities must prioritise partnerships that offer students meaningful, career-aligned exposure during their studies.
Entrepreneurship and micro-credentialing
Another powerful tool in the fight against unemployment is entrepreneurship education. When graduates can identify market gaps, develop solutions, and launch small businesses, they become part of the economic solution. Social entrepreneurship, in particular, can empower graduates to make a difference while earning a living.
Micro-credentialing also offers a competitive edge. Short, focused certifications can highlight a graduate’s skills and drive, setting them apart in a crowded job market.
Unlocking SMMEs to reduce unemployment
Small, medium, and micro-enterprises (SMMEs) are often overlooked in favour of big business, but they hold immense potential for job creation. Unfortunately, funding remains a hurdle. Many graduates lack collateral for traditional loans, and government systems for microloans are often inaccessible.
Support mechanisms like incubators and supplier certification programmes, embedded within universities, could give aspiring entrepreneurs the head start they need.
In summary, reducing graduate unemployment in South Africa requires coordinated efforts across the board: modernising curricula, fostering industry ties, integrating practical training, promoting entrepreneurship, and enabling access to small business funding. By addressing these six barriers, South Africa can turn higher education into a true engine for opportunity.
By: Dr Linda Meyer, MD at IIE Rosebank College and President of Rosebank International University College Ghana
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