Our Research posts are about the latest academic research being done in the School of Economics. This week:
Graduate Unemployment in South Africa: Perspectives from the Banking Sector
This study explores the perceived causes of graduate unemployment from the perspective of the South African banking sector. South Africa is experiencing a growth in its graduate labour force, but graduate unemployment is rising with the overall unemployment rate. Graduate unemployment is problematic, because it wastes scarce human capital, which is detrimental to the economy in the long-run.
Researchers have conducted various studies on graduate unemployment in South Africa and across the globe, but few studies have been conducted on the causes of graduate unemployment. There appears to be some gaps in the literature; therefore, other problems and solutions to graduate unemployment have to be explored and this provided the rational for this study.
The researcher design followed a survey. Questionnaires and face-to-face interviews were used as research instruments to identify the perceived causes of graduate unemployment in the banking sector of South Africa. Research participants were unemployed graduates, recently employed graduates and graduate recruitment managers in the banking sector.
Among the main findings were that several factors are perceived to be the causes of graduate unemployment in the South African banking sector. These include: skills, institution attended by graduate as well as differences in expectations from employers and graduates. The findings have implications for educational institutions and companies that are encouraged to consider possible solutions to resolving the causes of graduate unemployment as they might potentially influence graduate employment.
This research study is one of the primary papers to investigate the causes of graduate unemployment in the South African banking sector providing much information. It provides a rich platform for further studies and replication in other sectors, especially within the African context.