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Memorandum from the Parliamentary Office
NATIONAL COUNCIL OF PROVINCES
FOR WRITTEN REPLY
QUESTION 484
DATE OF PUBLICATION OF INTERNAL QUESTION PAPER: 21/10/2011
(INTERNAL QUESTION PAPER 32 OF 2011)
Mrs E C van Lingen (DA-EC) to ask the Minister of Higher Education and
Training:
1. Whether any studies have been conducted in respect of the number of
graduates who are unemployed; if not, why not; if so, (a) how many are
unemployed, (b) what types of qualifications are affected and (c) how
many are unemployed in respect of each qualification;
2. whether he intends taking any steps to encourage students to study
disciplines that are in demand; if not, why not; if so, (a) what steps
and (b) what are the further relevant details?
CW586E
REPLY:
1. The department has not carried out any studies in respect of the number
of graduates who are unemployed. However, various studies have been
conducted elsewhere with regard to graduates not being in employment. For
example,
⢠Altman, M (2007). Youth Labour market challenges in South Africa. HSRC
September 2007,
⢠Development Policy Research Unit (DPRU) (2006) Graduate Unemployment
in Post-Apartheid South Africa: Nature and Possible Policy Responses.
Research Report Compiled for Business Leadership South Africa. March
2006
⢠DPRU (2007). Graduate Unemployment in the Face of Skills Shortages: A
Labour Market Paradox. DPRU Policy Brief Series. Development Policy
Research Unit. University of Cape Town September 2007,
⢠CHET and FETI (2009) Responding to the educational needs of post
school youth
The most prominent study was done by the Centre for Higher Education
Transformation (CHET) and Further Education and Training Institute (FETI)
which highlighted the issue of 18 and 24 year olds not in employment, not
in education and not in training (NEET). This study showed that NEET youth
were mostly those that were not graduates. The total number of NEET youth
was approximately 2,8 million; of these were approximately 2.6 million had
Grade 12 or less and approximately 100 000 had a higher education
qualification. Of the unemployed youth with higher education
qualifications, about half had certificates. This confirms a study done in
1995 indicating that the majority of graduates that are unemployed have a
certificate or diploma. The NEET study showed that higher the level of
qualification is, the lower the unemployment rate.
The studies are not consistent in terms of identifying the number and type
of unemployed graduates. In 2007 there was one study that determined that
approximately 88 000 graduates were not employed in the formal economy and
the majority of these were students with Higher Certificates. However
another study suggested that a total of 130 000 graduates were unemployed
in 2007, which represented 6.9% of the graduate population at that stage.
According to statistics provided by Statistics South Africa in 2005
graduate unemployment rates were the highest amongst graduates from the
Business, Commerce and Management fields. According to the Development
Policy Research Unit (DPRU) research study conducted in 2007 which
investigated the graduate unemployment in the face of skills shortage,
although graduate unemployment remains small relative to overall
unemployment, the actual unemployment rate of the target group has
increased by almost 50 per cent between 1995 and 2005, which makes it the
fastest growing unemployment rate among all the education cohorts.
Having studied the current situation and some industry insights into the
problem, there are a variety of causes that contribute to the problem of
graduate unemployment. Although there is an oversupply of graduates in
general, unemployment is higher for:
⢠Those with a diploma or certificate coupled with Grade 12.
⢠African graduates, although this is partially explained by the massive
increase in enrolment of African students at tertiary institutions.
⢠Commerce students â this may be linked to the fact that this is a
field that attracts a high number of enrolments, and therefore there
is an oversupply of general commerce graduates.
Research studies have indicated that the unemployed are becoming younger.
Young adults under 35 years account for 75.7 % of the change in
unemployment between 1995 and 2005. This is a very worrying trend as young
people may become disillusioned, and as a result the economy may be damaged
and the skills base outdated and eroded. It is especially concerning to
note the rapidly rising unemployment among labour force participants with
secondary and tertiary qualifications. The bulk of these being those with
diplomas or certificates as indicated previously. There are many graduates,
however employers are not always able to use these graduates to fill their
skills requirements because:
⢠Skills and experience are sought in employees. Graduates may have the
qualifications but not the practical skills and experience.
⢠The wrong types of graduates are being produced. We need more
technical graduates. This is illustrated by the low enrolment levels
in engineering sciences and at Further Education Training (FET)
colleges.
⢠Shortage also exists at management level and new graduates are not
suited for these positions as they do not have the required
experience.
⢠Suitably skilled staff is often poached by other companies or
emigrate.
⢠Some graduates are not of a high enough quality.
Many Graduates are unemployed, because they have chosen the wrong Field of
Study. It is important to note that, while labour demands for students with
qualifications in social sciences and humanities are less acute these are
fields where high numbers of students enrol. Students also enrol in fields
of study that do not directly prepare them for professions, and therefore
it takes them longer to find jobs than graduates in areas where they are
more prepared.
This raises questions about how students select their subjects. A study by
Cosser et al. (2003: 34) found that 60 per cent of students chose to study
something because they were interested in it, and only 23 per cent chose it
because of the employment opportunities.
2. My department has recognised the importance of assisting students to
make the right choices and study in areas that would assist them in
gaining productive employment. To this effect a career advice call centre
has been established through SAQA to advise prospective students of
possible career options and opportunities as currently available on the
National Qualifications Framework.
In addition an integrated approach towards education and skills has been
developed within the post school system to address these systemic
challenges. I also initiated the process of drafting a green paper on
higher education and training that is aimed at developing a post school
system more responsive to the needs of the youth and aimed at reducing
poverty and unemployment.
I also met with SAGDA (South Africa Graduate Development Association) in
March 2010 to discuss the issue of âthe twin challenges of high
unemployment and a critical skills shortage that must be tackledâ. SAGDA
has been at the forefront of graduate development for the past 14 years
and has helped over 200 000 students/graduates through job readiness
programmes. In November 2010, SAGDA launched a new organizational
strategy and adopted a new vision/mission to navigate the graduate
empowerment trajectory through viable partnerships, footprint to rural
and remote areas and research. The strategy entails the establishment of
Chambers as avenues for professional development and community of
practice where members gather, network, share best practices to achieve
specific targets. The following chambers are currently active for
participation by members, partners and donors: Graduate Empowerment
Chamber; Career Guidance Chamber; Rare And Critical Skills Chamber;
Graduate Research Chamber; Student Inventions & Innovations Chamber; and,
Employer Chamber.
Further to this, there is a growing requirement for professionals,
technicians and artisans in, for example, the green energy and nuclear
power sectors to meet the needs of the government's "urgent projects".
There is also a need for social science graduates and social workers that
are required by the department of social development. In order to create
employable graduates, lecturers needed to work with -- and teach -- the
latest technologies. This capacity must be strengthened, especially in
Further Education and Training colleges. For example, many colleges
taught obsolete computer programs which did not equip their students for
the contemporary working environments.
Compiler/contact persons: Engela van Staden
Ext: 5889
DIRECTOR â GENERAL
STATUS:
DATE:
QUESTION 484 APPROVED/NOT APPROVED/AMENDED
Dr B NZIMANDE, MP
MINISTER OF HIGHER EDUCATION AND TRAINING
STATUS:
DATE: