Graduate unemployment in South Africa (2016-2025): trends, drivers and policy matrix

Ishmael Obaeko Iwara () and Victor Ojakorotu ()
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Ishmael Obaeko Iwara: North-West University, South Africa
Victor Ojakorotu: North-West University, South Africa

Insights into Regional Development, 2026, vol. 8, issue 2, 136-149

Abstract: This study examines the evolving nature of graduate unemployment in South Africa over the past decade, arguing that the challenge has shifted from short‑term, cyclical labour market mismatches to a deeply structural failure of economic absorption. Drawing on evidence of employment outcomes and policy experience from 40 publications, the analysis based on the Atlas_ti 26.0.0 model demonstrates that graduate unemployment is driven by the interaction of structural constraints—such as slow and uneven economic growth, deindustrialisation, limited expansion of high‑skill sectors, and persistent socio‑economic inequalities—alongside institutional weaknesses within higher education, labour market entry systems, and recruitment practices. These long‑standing conditions have been further intensified by cyclical shocks, notably the economic downturn preceding 2019 and the COVID‑19 pandemic, which disrupted school‑to‑work transitions and generated scarring effects for new labour market entrants. The findings reinforce the National Development Plan 2030’s core proposition that employment is the foundation of development, while highlighting a critical gap between human capital production and productive employment creation. Consequently, graduate unemployment should be treated as a systemic indicator of economic performance and inclusion rather than an education failure, and argues for policy approaches that prioritise demand‑side job creation, strengthened labour market transitions, and equity‑driven absorption strategies to align higher education outcomes with inclusive growth objectives.

Keywords: graduate unemployment; higher education; National Development Plan 2030; Socio-economic imperatives (search for similar items in EconPapers)
JEL-codes: I23 I26 J64 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouird:v:8:y:2026:i:2:p:136-149

DOI: 10.70132/p6424849628

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