Unemployment and Higher Education in South Africa: Navigating a Complex Landscape

The latest Quarterly Labour Force Survey (QLFS) released yesterday for Q2:2024 reveals a 0.6% increase in the official unemployment rate from the previous quarter, rising from 32.9% to 33.5%. This year-on-year comparison is even more concerning, showing a 0.9% increase from 32.6% in Q2 2023. Moreover, the expanded unemployment rate—which includes discouraged work-seekers—climbed to 42.6% in Q2 2024.

While unemployment among university graduates declined by 2.1 percentage points to 9.7% this quarter, a figure lower than a decade ago (11.8%), the jobless rate among those with only matric and less than matric stands at 35.8% and 39.3%, respectively. Additionally, the unemployment rate among black Africans (37.6%) remains higher than the national average and other population groups.

These metrics highlight the significant challenges facing South Africa's higher education sector today. The sector must contend with several critical issues that impact its ability to deliver quality education and produce graduates ready to meet the demands of a rapidly changing world.

Access and Equity

While access to higher education has improved, disparities persist. Students from rural and disadvantaged backgrounds often face barriers, including financial constraints, lack of preparedness, and inadequate support systems. These challenges lead to high dropout rates and unequal opportunities for success. In some institutions, only 50% of students enrolled in Science, Engineering, and Technology (SET) programmes will eventually graduate, even in the most prestigious institutions. However, there is currently no comprehensive government programme to ensure that those who drop out are either re-engaged or redirected into alternative pathways—whether through formal or informal education—to participate in the economy.

Countries with the lowest youth unemployment rates typically offer multiple pathways for young people after high school. One such pathway is apprenticeships, which allow youth without formal qualifications to earn while in training. The benefit of an apprenticeship is that alongside a qualification, individuals gain hands-on experience and the opportunity to apply their skills immediately. In contrast, university graduates often have to wait until they've completed their degrees to earn a full-time wage, and many entry-level positions require prior experience.

While a university degree was once seen as a significant opportunity and an express ticket out of poverty, the increasing number of unemployed graduates has led many to question the value of higher education. The COVID-19 pandemic has exacerbated this issue by widening the inequality gap, making higher education a luxury for many South Africans.

Graduate Employability

Ensuring graduates are employable in a rapidly changing job market is a significant challenge. There is a pressing need to focus on developing critical thinking, problem-solving, and digital skills, as well as fostering entrepreneurship and innovation among students. In 2020, the sector produced 237,882 graduates; in 2021, 233,257; and in 2022, 225,702. With many of these graduates seemingly still unemployed, what is the plan to address this issue? While there are initiatives like the Youth Employment Service (YES), there is a need to consolidate all government programmes to tackle graduate unemployment effectively.

Transformation and Inclusion

Despite efforts to transform higher education, issues of race, gender, and inclusivity persist. The decolonisation of curricula and the creation of inclusive campuses remain ongoing struggles. There is also a need for greater representation of historically marginalised groups in academic and leadership positions. While the discourse around decolonisation and Africanisation of curricula is essential, it tends to be backward-looking rather than future-focused. The critical question should be: How do we transform the curriculum to address the skills and jobs of the future? How do we ensure that graduates from South African higher education institutions are not left behind in the Fourth Industrial Revolution (4IR) and subsequent industrial revolutions and disruptions? Moreover, how can we shift the mindset from viewing a university qualification as merely a ticket to a job to seeing it as an opportunity to be entrepreneurial?

Quality of Education

The quality of education in many institutions is inconsistent. Challenges include outdated curricula, a lack of qualified staff, and insufficient resources. There is also a need to align education with the demands of the Fourth Industrial Revolution, ensuring that graduates possess relevant skills for the future job market. One of the biggest impediments to achieving this is the lack of differentiation among South African higher education institutions. With 26 public institutions offering similar qualifications and competing for the same student pool and funding, the sector has no clear mandate. Differentiation could ensure that universities focus on specific areas of expertise, improving education quality and encouraging education migration and tourism.

Funding and Financial Sustainability

Many South African universities face financial constraints, affecting their ability to maintain infrastructure, adequately pay staff, and provide necessary student resources. Government subsidies have not kept pace with inflation and the increasing costs of higher education, leading to higher tuition fees and student protests, such as the #FeesMustFall movement.

Financial constraints also limit the availability of student support programmes like graduate readiness and work readiness initiatives. While activities are happening through organisations like the Technological Higher Education Network South Africa (THENSA) and other bodies, there is a need for centrally coordinated programmes managed by the Department of Higher Education. Some universities lack graduate readiness programmes or coordinated graduate recruitment initiatives.

Infrastructure and Facilities

Many institutions struggle with inadequate infrastructure, including outdated buildings, insufficient lecture halls, and limited access to technology. The COVID-19 pandemic highlighted the digital divide, where many students lacked access to online learning resources, exacerbating educational inequalities. Furthermore, the infrastructure for experimental laboratories is outdated, lagging behind technological advancements and the learning outcomes needed to accommodate in-demand and future skills.

Partnerships with the private sector could significantly assist in this regard. However, without differentiation, all 26 institutions compete for the same donors and resources, diluting the impact of available grants. Differentiation would allow specific institutions to align with particular industries, improving both infrastructure and graduate employability.

Research and Innovation

South African universities are under pressure to increase research output and innovation to remain competitive globally. However, challenges related to funding, collaboration with industry, and the commercialisation of research persist. The need to balance teaching with research activities also poses a challenge for academic staff. With the financial sustainability of universities now dependent on third-stream income through research and other grants, the focus has shifted towards research output. However, this often comes at the expense of the other core missions of a university: teaching and learning and community engagement. There needs to be a renewed focus on producing quality graduates who are employable, entrepreneurial, and globally competitive.

Student Support Services

There is a growing need for robust student support services, including mental health resources, career counselling, and academic advising. Many students face challenges such as financial stress, mental health issues, and a lack of academic preparedness, all of which impact their academic performance and overall well-being.

Governance and Management

Effective governance and management are critical for the success of higher education institutions. However, issues such as leadership instability, corruption, and bureaucratic inefficiencies have plagued some institutions, affecting their overall performance and reputation. The mass exodus of staff from the Department of Higher Education, coupled with corruption issues at NSFAS and within institutions, requires urgent attention. There is a need to professionalise many functions within the sector. Creativity and innovation are vital for sustained success, even in a hybrid work environment. Maintaining and building cohesive organisational cultures within a dispersed workforce requires intentional effort. Virtual events, recognition programmes, and inclusive practices are necessary to promote and sustain institutional cultures in a hybrid setting.

Internationalisation

While there is a push for internationalisation, including attracting international students and forming global partnerships, South African universities face challenges related to visa regulations, safety concerns, and competition from other countries. It is crucial to recognise that South African higher education institutions are competing on a global scale. Planning must integrate internationalisation as a core strategy, not just a "nice to have." As competition intensifies, institutions' financial sustainability may increasingly depend on their international outlook, as evidenced by the growing importance of global rankings.

Department of Higher Education and Training (DHET) Dr Nkosinathi Sishi Universities South Africa Technological Higher Education Network South Africa (THENSA) Entrepreneurship Development in Higher Education (EDHE)

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