• Voter paralysis

    With so much tilting voters against change, democratic reason is the loser, says Solly Moeng.

  • The power of perseverance

    True grit is a reliable predictor of who will achieve success in life, says Ian Mann.

  • It's the system

    The system sucks and it’s being used far too often as an excuse, says Mandi Smallhorne.

All data is delayed
Loading...
See More

'SA produces wrong kind of graduates'

Jan 10 2012 12:08
Sapa

Johannesburg - Universities are producing the wrong kind of graduates to redress South Africa's high unemployment rate, a labour analyst said on Tuesday.

"There are currently nearly 600 000 unemployed university graduates in South Africa, mostly in the arts, humanities and social sciences," said Adcorp labour market analyst Loane Sharp in a statement.

"Whereas the private sector has more than 800 000 vacancies in management, engineering, law, finance, accounting and medicine."

Sharp said some professional bodies also restricted entry into their fields through the standards they set, often in concert with universities.

This was typically backed by legislative and regulatory requirements.

Sharp said, for example, the General Council of the Bar, the law societies, the Health Professions Council of SA and the Institute of Chartered Accountants set their own criteria - like exams and low-paid articleship or housemanship - as a prerequisite for entry into the professions.

"By contrast, fields such as physics, finance, engineering, economics and management do not have professional bodies," he said.

A supplementary analysis to the Adcorp Employment Index released on Tuesday found that government handouts, trade unions and affirmative action were negatively affecting the desire to work in South Africa.

"As many as 10.2 million South Africans - one in five - receive grants of one form or another, amounting to 14.9 million grants or 1.5 grants per recipient, yielding average annual transfers of R9 539 per beneficiary," Sharp said.

Referring to Statistics SA's Quarterly Labour Force Survey, Sharp said 43% of unemployed people were willing to accept a job, if offered, when they were living off their own savings.

In contrast, only 11% of people would accept a job if they were supported by social grants and welfare.

"Unemployed people are also more likely to remain out of work if they are supported by social grants and welfare: the average duration of unemployment is 16 months for people who do not receive grants, compared to 21 months for people who do."

Sharp said trade unions also appeared to discourage work.

"Only 9.3% of unionised workers, as opposed to 17.8% of non-unionised workers, are prepared to work additional hours in a given week.

"And, of those who will do so, unionised workers are prepared to work an additional 0.9 hours a week compared to 2.4 hours a week for non-unionised workers."

The index showed that affirmative action also discouraged some job seekers.

Highly qualified whites were substantially less likely than blacks to find a job within 12 months of initiating a job search.

For job-seekers with a tertiary qualification, blacks were 34% more likely to find work than whites.

"This has contributed to the higher percentage of whites operating their own businesses."

"Business owners' share of national income increased from 39.9% in 1995 to 47.2% in 2011, while employees' share has correspondingly declined," Sharp said. 

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
92 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Would you take out a payday loan?

Previous results · Suggest a vote

Loading...