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Graduate Unemployment in the Face of Skills Shortages: A Labour Market Paradox

Author

Listed:
  • Kalie Pauw
  • Morne Oosthuizen
  • Carlene van der Westhuizen

    (Development Policy Research Unit,University of Cape Town)

Abstract
There is consensus among analysts that South Africa’s unemployment is structural in the sense that the unemployed generally possess lower skills than what is required in the marketplace. In the context of increasing demand for skilled workers due to technical progress and the need to become more competitive globally, graduate unemployment would be expected to fall. This paper investigates the nature of graduate unemployment in South Africa since 1995, finding that labour force and employment growth has been concentrated in higher educational categories. However, against expectations unemployment has risen amongst young and better educated people. The paper suggests that the education sector urgently requires continued emphasis and monitoring to ensure that learners are adequately prepared for entry into the labour force; that greater efforts be made to encourage learners to choose directions of study with superior employment prospects; and that investment in young people’s soft skills is required.

Suggested Citation

  • Kalie Pauw & Morne Oosthuizen & Carlene van der Westhuizen, 2006. "Graduate Unemployment in the Face of Skills Shortages: A Labour Market Paradox," Working Papers 06114, University of Cape Town, Development Policy Research Unit.
    • Handle: RePEc:ctw:wpaper:06114
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    File URL: http://hdl.handle.net/11427/7346
    File Function: First version, 2006
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    References listed on IDEAS

    as
    1. Murray Leibbrandt & Haroon Bhorat, 1999. "Modelling Vulnerability and Low Earnings in the South African Labour Market," Working Papers 99032, University of Cape Town, Development Policy Research Unit.
    2. 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.
    3. H. Bhorat & J. Hodge, 1999. "Decomposing Shifts in Labour Demand in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 67(3), pages 155-168, September.
    4. 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.
    5. Daniel K. Mengisteab & Johannes W. Fedderke, 2016. "Estimating South Africa’s output gap and potential growth rate," Working Papers 21, Economic Research Southern Africa.
    Full references (including those not matched with items on IDEAS)

    Citations

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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. 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.
    3. 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.
    4. 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.

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    More about this item

    Keywords

    South Africa: graduate unemployment; skills shortages;

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

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