South Africa’s graduate unemployment rate has surged from 8.7% last year to 11.7% this year, which has prompted questions about the value of a university degree in a struggling economy. However, the question should not be about the value of further education, but rather the systemic – yet clearly identifiable and addressable – issues that continue to cause barriers to employment post-graduation, an education expert says.
“The case for more education, not less, is settled on the numbers,” says Dr Linda Meyer, MD at IIE Rosebank College and President of Rosebank International University College Ghana.
For those with only a matric certificate, the unemployment rate hovers at 34.9%, and it climbs to 39% for those without. The graduate unemployment rate – while up from last year – is a fraction of that at 11.7%, Dr Meyer notes.
“But it is true that despite the clear case for education—evidenced by consistently lower unemployment rates for degree-holders compared to those with less education—the growing disconnect between tertiary education and employability demands urgent attention,” she says.
Dr Meyer says there are 6 clear barriers to employment for graduates, which must be addressed through an urgent coming together between higher education institutions, government and industry.
ECONOMIC BARRIERS
South Africa’s stagnant economic growth is the primary barrier to graduate employment.
“The economy needs to grow at least 3% annually to absorb graduates effectively,” Dr Meyer explains. “Without this, even well-educated individuals struggle to find opportunities. The solution lies in not waiting for economic improvement but in proactively equipping graduates with skills to create their own opportunities.”
CURRICULUM REFORM
The outdated design of university curricula is a key constraint to workplace readiness, says Dr Meyer.
“The degrees our parents studied are largely the same as those offered today, which is absurd on its face,” she notes.
To bridge the gap, institutions must align programmes with industry needs, particularly in high-growth sectors like artificial intelligence (AI), information and communications technology (ICT), and cybersecurity.
“These fields have huge job opportunities, but our curricula must reflect these demands,” she says.
Additionally, digital fluency must be prioritised, along with soft skills and entrepreneurial competencies to prepare graduates not just to become employees, but also potential employers.
“It is unacceptable that there are still students who do not know how to use a computer. If you are not digitally fluent as a graduate, your opportunities are severely, if not completely, curtailed.”
INDUSTRY PARTNERSHIPS
Collaboration with industry is critical, however there is a lack of incentives for such partnerships with higher education.
“In the vocational sector, tax incentives drive collaboration, but this is absent in universities,” says Dr Meyer.
“Many companies run bridging programmes to retrain graduates, indicating a skills mismatch that could be addressed earlier through formalised partnerships. Statutory bodies in key sectors, such as mining, ICT, and healthcare, should work closely with universities to ensure graduates’ skills are fit for purpose.”
Funding shortages further exacerbate the issue, limiting access to cutting-edge equipment. This calls for strategic partnerships to provide the latest technology, ensuring students gain hands-on experience with tools used in industry.
WORK-INTEGRATED LEARNING AND CAREER DEVELOPMENT
Dr Meyer says incorporating work-integrated learning (WIL) into curricula is non-negotiable.
“Internships and simulated work environments are game-changers. A graduate with just one year of experience sees their employability increase exponentially.”
Universities must prioritise partnerships with companies for internships, create on-campus labs, and develop ecosystems that mimic real-world work settings.
ENTREPRENEURSHIP AND MICRO-CREDENTIALLING
To empower graduates as job creators, entrepreneurship education and micro-credentialing are key.
“Digital entrepreneurial skills and understanding market gaps are crucial,” says Dr Meyer.
Universities should partner with businesses to provide incubation funding and mentorship, enabling graduates to launch ventures. Social entrepreneurship, in particular, offers opportunities to address societal challenges while building sustainable businesses.
Micro-credentialling can also set graduates apart in a competitive job market.
“When employers screen 400 CVs, micro-credentials highlight unique skills and drive. These certifications, combined with an entrepreneurial mindset, equip graduates to identify and solve specific problems, creating businesses that address real-world needs.”
SMALL BUSINESS DEVELOPMENT
There is major untapped potential in South Africa’s small, medium, and micro-enterprise (SMME) sector.
“We often focus on big businesses, but SMMEs offer significant opportunities. However, access to funding remains a barrier. Many graduates lack the collateral for bank loans, and government processes for micro-loans must be made fairer and more accessible.
“Sometimes, it doesn’t take huge capital—just enough to buy stock and start pursuing dreams,” she notes.
Educational mechanisms, such as business incubators and supplier certification programmes, could also be integrated into tertiary institutions to support aspiring entrepreneurs.