2,001 research outputs found
Career choice and unemployment length: a study of graduates from a South African university
No full textGraduate unemployment is especially problematic in a country where much emphasis is placed on furthering academic studies for economic and personal rewards. This article investigates the relationship between career choice and unemployment length among graduates from a South African university. Data were collected by means of a survey questionnaire distributed to graduates in the university's alumni database. An analysis of variance model was estimated and various descriptive analyses and an ordinary least squares regression were employed. The study finds that the specific majors held by graduates not only influence employment status but also the time taken to find employment. Although human resources, industrial psychology, labour relations management, public administration, public management and politics remain the most popular majors, many graduates in these areas have to wait a long time before securing a job. In light of their findings, the authors recommend that university courses should be as practically oriented as possible in order to help graduates in the job market and consequently to make the transition from education to work an easier one. For their part, graduates need to ensure that they make wise and informed career choices. The government needs to put into effect direct interventions that will enhance and augment teaching and learning throughout the educational system, bearing in mind that the choice to study a certain discipline may be affected by many factors, some of which are beyond the control of the student, such as the quality of school education or socio-economic background
Determinants of the perceptions of free Higher Education among students at a South African University
No full textThe debate on the mode of financing of higher education is not a new one. For decades, there have been opposing views and conflicting efforts in as far as the financing of higher education is concerned. Most developed countries have more or less settled on a regime that does not compromise on both quality and equity by introducing financing mechanisms that allow the needy to borrow money or commonly known as soft loans only payable after graduating and securing a job. In developing countries, there is still antagonism and a lot of frustration among students and parents in the sense that higher education is still not accessible by many and the financing of the same still excludes the majority of deserving students. Towards the end of 2015 and beginning of 2016, students in South African universities rose up to first demand no increment of their tuition and thereafter free higher education. This paper looks at the perceptions of free higher education among students at one of the universities in South Africa and also assesses the demographic characteristics that inform their cosmological point of view and hence the perceptions
Perceptions of local businesses on the newly proposed national minimum wage in South Africa
No full textAs a country faced with many socio-economic challenges government intervention prompting protests are not unique to South Africa. In light of these confining circumstances, requests from various economic agents, especially labour unions have been directed towards the implementation of a national minimum wage (NMW). Although theory advocates negative effects from minimum wages, international evidence regarding these labour market interventions shows conflicting outcomes. The main aim of the study was to analyse business owners' perceptions regarding the impact of the implementation of a NMW. A qualitative research approach was adopted to collect data with a total of 10 in-depth interviews conducted with business owners in the Vaal Triangle region, Gauteng. The results of the study showed that participants acknowledged the advantage of implementing a NMW, perceiving the intervention as a much needed step towards greater equality. Other perceived advantages involved the security a NMW provides job-seekers and the possible impact on improved demand for goods and services as higher wages stimulate the economy. Concerns however were raised regarding small firms' ability to cover these wages and the capability of the legislation to account for inherent skill differences in various sectors. The findings of the study provide valuable insights especially in the South African context and even more so from a demand side perspective regarding the possible impact of these labour market interventions
Determinants of housing insecurity in a low income South African township
No full textThe campaign to end poverty by 2030, as advocated by the World Bank, has multifaceted components. Food security and abject poverty have received more attention; however, little attention has been focused on housing insecurity. This is important, especially given the fact that it is widely acknowledged that housing satiates an essential human need for physical security, dignity and prosperity, among other things. Housing, for some time, has been observed as crucial to individual and family functioning. As indicated by organisations such as the United Nations Habitat, the importance of appropriate housing is explained by the fact that safe housing is seen as a basic need among other needs such as food, all of which are regarded as central components of the security of ordinary households, particularly in developing countries. In 2015, more than 1.5 billion people in the world were living in housing that was unsafe and inadequate, while in the meantime, millions experienced eviction from their homes every year, with at least 100 million people becoming homeless on any given day. Therefore, it is pertinent to understand what determines housing insecurity. The study aims to investigate factors that determines housing insecurity. Using data collected from Sharpeville and Bophelong, two low income townships in South Africa that are particularly vulnerable to housing insecurity, the study employs a multinomial logistic regression to investigate the effects of head of household and the general household characteristics on housing insecurity. The results of the regression analysis show that income, gender, number of people in the household and the amount paid to bond or rent are significant predictors of housing insecurity. Contentious issues like access to land and job opportunities are areas of further study in understanding the multifaceted phenomenon of housing insecurity
The impact of the agricultural sector on economic growth and development in South Africa
No full textMCom (Economics), North-West University, Vanderbijlpark CampusEconomically, countries are funded by three economic sector structures nobably primary, secondary and tertiary economic sectors. The economy of South Africa also depends on these three sector performances for its growth and development. Economies of most developing countries are mostly reliant on the agricultural sector for industrialisation,for which there is evidence that even the current industrialised economies transformed through the agricultural sector. However, South Africa depended on the agricultural, mining and manufacturing sectors for transformation because ofthe consistent low performance of the agricultural sector. Though these sectors are still playing a significant role in economic growth and development in South Africa, the country facesa highunemployment rate, stagnating growth and low living standards. Growth in the primary sectors is impacted negatively by domestic and global constraints. Besidesthe highunemployment rate, the said constraints include but are unlimited to global competition, limited supply of energy, volatile exchange rate, output reduction, deteriorating terms of trade, the impact of the 2008 global financial crisis, imbalance imports and exports, which all have adverse effects on the South African economy. However, since the early 2000s, the Presidency (2001) lamented that successful development in South Africa is dependent upon an agriculture-led growth strategy and direct policies at agricultural growth facilitation. Nonetheless, all strategies employed to induce agricultural productivity in South Africa proved futile.
Consequently, this study was commissioned to analyse the impact of the agricultural sector on economic growth and development in South Africa. The following empirical objectives were set to support the primary objectives of the study: (i) to determine the long-run impact of the agricultural employment, agricultural exports and agricultural output (GVA) on economic growth and development in South Africa; (ii) to determine the short-run impact of agricultural employment, agricultural exports and agricultural output (GVA) on economic growth and development in South Africa; (iii) to analyse the causal effects between agricultural employment, agricultural exports agricultural output (GVA) and economic growth and development in South Africa; (iv) to formulate recommendations for improved growth and development pertaining to the agricultural sector, economic growth and development in South Africa. Secondary annual time-series from 1994 to 2019 data used in the study were acquired from the South African Reserve Bank (SARB), the World Bank’s world development indicators (WDI) and Quantec Easy Data. The data wereanalysed using different statistical and econometric approaches comprising descriptive statistics, Pearson correlation, unit root and stationarity tests using the autoregressive distributed lag (ARDL) model, error correction model (ECM) and the Toda-Yamamoto causality tests.
The study findings suggest the existence of a long-run relationship between dependent and independent variables. In order words, economic growth and development will respond positively to improvement in agricultural performance in South Africa. Improving agricultural productivity and agricultural GVA will improve both the contribution of agricultural employment and agricultural exports towards economic
growth and economic development as well as enhance the living standards in South Africa. Agricultural exports were found to be contributing less to economic growth in South Africa. Due to the low agricultural productivity and thus failure by the agricultural sector to satisfy domestic consumption, large quantities of food imports into South Africa reduce agricultural export objective to the attainment of positive trade balance only. Should the government improveagricultural policies and adopt export-oriented policies, increased exports will impact positively not to economic growth and development only, but on agricultural employment too. In addition, the long-run negative impact of agricultural employment on per capita GDP as indicated by empirical results of the study requires the adoption of productivity-enhancing technologies, which when coupled with agricultural employment, will increase agricultural productivity and contribute to employment creation in the sector. The impact of agricultural performance in the short-run is limited since changes that occur in the South African agricultural sector in the short-run do not have an impact on economic growth. However, short-run changes in chosen variables do have a positive impact on economic development. This means that inclusive and sustainable agricultural policies together with effective strategies are required to support the sector and induce economic growth and development in the short-run.Master
Antecedents of housing insecurity in South Africa : a household level analysis
No full textMCom (Economics), North-West University, Vanderbijlpark Campus, 2021Understanding the multidimensional and complex nature of housing insecurity is critical in understanding the rigorous economic realities of many households. Specifically, this dissertation attempted to analyse the significance of the determinants that hold relevance in explaining the nature of housing insecurity at a household level in South Africa. The interest behind the study stemmed from a lack of literature within the Global South in explaining the housing insecurity phenomenon. Thus, through the formulation of various theoretical and empirical objectives, the study attempted to add to the existing knowledge gap by critically examining factors that may determine housing insecurity at a household level. The theoretical objectives formulated in the study were as follows: to conceptualise housing insecurity; to review the theories surrounding housing insecurity; to review the empirical literature on housing insecurity; to review the literature on the nature and fundamental causes of housing insecurity; to review the literature on the socio-economic determinants of housing insecurity in both developing and developed countries; and to analyse overbearing issues pertaining to housing security in South Africa. The theoretical objectives were addressed on the basis of appraising the theoretical underpinnings surrounding housing insecurity on to conceptualise housing insecurity on a regional and global scale. In Chapter 2, the study conceptualised the nature of housing insecurity as homelessness, quality of housing, overcrowding, forced evictions and lastly housing cost burdens. The study also reviewed theoretical aspects in an attempt to elucidate the nature of housing. Some of the theories used as a guidance were neoclassical theory and the Institutional theories. These theories have pointed out that
the lack housing stems from the lack of economic resources while institutions are the reasons households are deprived of economic resources to access adequate housing and lead better livelihoods. Moreover, in Chapter 3, the study presented that the definition of housing insecurity shows a discrepancy across the globe, owing to cultural dynamics, institutions and economic characteristics. For instance, housing in Global South may constitute a different economic reality compared to the Global North. The empirical objectives of the study were stipulated as follows: to adopt and adapt a composite suitable measure of housing insecurity at household level for South Africa; to identify the level of housing insecurity in South Africa, to identify the vulnerability of households towards housing insecurity, to assess the contemporary determinants of household housing insecurity in South Africa, to provide relevant recommendations for South Africa to evaluate the contemporary housing policies. These objectives were answered with the data collected from Statistics South Africa of 20 908 households through the General Household Survey conducted in 2018. The study followed the post-positive paradigm, which necessitated the use of quantitative research methods. Specifically, the study adopted a multinomial logistic regression to rigorously answer the empirical objectives while also employing
various descriptive statistics such as cross tabulations. The results on the demographics indicated that a
greater proportion (57.1%) of the households were male-headed compared to female-headed (42.9%). While also demonstrating that the majority of the household heads were those aged between 30-45 years with 34.9 per cent. Moreover, 83 per cent of the households were headed by Black/African population group as compared to Asian/Indian (1.9%), Coloured (7.9%) and White (7.2%) and most (59%) of the households had a household size of 1 to 3 people while those with a household size of 8 or more comprises a mere 5.8 per cent. Correspondingly, the economic characteristics demonstrated that approximately 77 per cent of the population study were employed, however, males had a greater share (73.3%) of unemployment as compared to females (26.7%). Equally important, in terms of household home ownership status, 58.4 per cent of the households had an ownership status of full ownership with no remaining bond payments commitments that should be paid to the bank compared to rented (20.2%), owned and not fully paid (1.5%), occupied rent-free (13.6%) and otherwise (6.3%). In empirically analysing the determinants of housing insecurity at household level, the study formulated a Housing Insecurity Index (HII) as a composite measure that included a continuum of housing secure; mildly housing insecure; moderately housing insecure; and severely housing insecure. The regression
results were presented in three levels of analysis. At all three levels, it was demonstrated that household income is a significant predictor of a household housing insecurity status. Moreover, it was revealed that employment, household home ownership status, the age of the household head, household size, population group and gender of the household head are all the significant determinants of a household housing insecurity status. It was a worrying concern to discover that Black/African-headed households were the most vulnerable population group against the economic reality of housing insecurity. The study has attempted to broaden the understanding of housing insecurity at household level by contributing to the methodological aspects surrounding housing insecurity. In fact, the study formulated a composite measure in which it can be employed in the future research studies, while also broadening the understanding of housing insecurity through the theoretical and empirical findings. Moreover, the study proposed research questions that should be explored in the future research studies to substantiate the recent findings of this study. In order to control the harsh economic reality of housing insecurity at household level, the study provides policy recommendations that the central government or policymakers may adopt to have a clear understanding of the multidimensional nature of housing insecurity and how it can be addressed. There is a need for a composite measure that will include all characteristics of housing insecurity at household level. Furthermore, the lack of developmental land leads to overcrowded and unsafe neighbourhoods, as such, the study proposes that the central government facilitate the growth of developmental housing scales in proximity to economic hubs in order accommodate the previously disadvantaged. Based on the finding that the study showed that employment levels were low amongst male-headed household compared to female-headed households, there is therefore a need for the
formulation of initiatives that will increase employment levels and discourage gender disparities in economic participation. This may assist in escaping possibilities of experiencing housing insecurity.Master
An analysis of the South African social security system
No full textMCom (Economics), North-West University, Vanderbijlpark Campus, 2019In the ever-changing global market environment, it is crucial for national governments to establish an enabling social economic atmosphere for the upliftment of individuals’ quality of life and well-being. International institutions state that social security has become one of the most important forms of assistance provided by a national government, which is now seen as an overall human right. Economic theory expresses a viewpoint of justice and a theoretical agenda for instituting radical organisations designed to maintain social justice and individual independence. Factors constituting the social security system include the number of social security recipients, the amount spent on social security, the economic environment, the level of human development, the amount of individuals without a job, the amount of individuals within a household, distribution of income and the number of individuals in income poverty. Empirical declarations have presented mixed findings on the subject matter and thus no single empirical consensus has been presented. Meanwhile, international institutions combined with the economic theory argue that potential effects of the aforementioned social factors on an economy’s social security patterns vary according to the orientation of the economy’s condition of need. This study examined the South African social security system, stated in the Republic of South Africa Constitution, Section 27 (1c) as, “every individual has the right to have access to social security, including if they are unable to support themselves and their households, proper social assistance” and requires legislative measures which should be employed by the national government to create awareness of this right in order to alleviate poverty and income inequality as well as to uplift individuals standard of living, included in Section 27 (2). In order to investigate the aforementioned Constitutional statements, the study employed both a descriptive and an econometric analysis on the South African social security system. Throughout the descriptive section, trends and graphs are used to analyse the different social security systems found across the globe and it culminates with an in-depth analysis of the different social security assistance types in South Africa. The econometric analysis ascertains the long-run and short-run relationship between three econometric models, namely the number of individuals in poverty, income inequality (as measured by the GINI coefficient) and human development (as measured by the Human Development Index (HDI)), with the number of social security recipients, the amount spent on social security, the number of individuals without a job, economic activity and the number of individuals within a household from 1996 to 2017. The study also establishes a causal direction between the aforementioned factors. The models employed under the econometric section include the correlation matrix, ARDL bounds test to co-integration and the Toda-Yamamoto Granger causality test. The study made use of a quantitative research methodology and includes time series macro-economic variables from 1996 to 2017. The correlation matrix found that the correlation between poverty and the aforementioned independent variables, indicates that two (social security recipients and the number of individuals within a household) out of the five variables have a positive relationship with the alleviation of poverty; however, these positive relationships are not significant at any significance level. Three (amount spent on social security, economic activity, number of individuals without a job) out of the five variables have a negative relationship with poverty and only social security expenditure and economic activity has a significant impact on poverty at 1 percent significance level.
On the other hand, the correlation matrix for human development found that four (number of social security recipients, amount spent on social security, economic activity, unemployment) out of the five independent variables have a positive relationship with HDI and these positive relationships are all statistically significant at 1 and 5 percent significance level, except for the number of social security recipients (not significant) and one (number of individuals within a household) of the five independent variables having a negative relationship with the improvement of HDI and is statistically significant at the 1 percent significance level. The correlation matrix for income inequality found that two (number of social security recipients and the number of individuals within a household) of the five sectors under the study have a positive relationship with income inequality. However, these positive relationships are only statistically significant for the number of social security recipients and three (amount spend on social security, the number of individuals without a job and economic activity) of the five variables have a negative relationship with income inequality where only the number of individuals without a job is not statistically significant. The long-run relationships were insignificant between the number of individuals in poverty, income inequality (GINI) and human development (HDI) with the number of individuals receiving social security benefits, total amount spent on social security, number of individuals within a household, number of individuals without a job and economic activity. The short-run Toda-Yamamoto Granger causality found a unidirectional causal relationship between human development and the number of individuals without a job. This means that human development Granger causes unemployment but not the other way around. There is also a causal relationship between HDI and all the independent variables combined, at 5 percent significance level. A unidirectional causality exists between the number of social security recipients and the number of individuals in poverty. This means that the total number of social grant recipients Granger causes poverty but not the other way around. There is also a causal relationship between the number of social security recipients and all the independent variables combined, at 5 percent significance level. A unidirectional causal relationship exists between the number of individuals in poverty and the number of individuals without a job. This means that poverty Granger causes unemployment but not the other way around. Furthermore, there is a causal relationship between the number of individuals in poverty and all the independent variables combined, at 1 percent significance level. A unidirectional causal relationship exists between the income inequality and the human development. This means that income inequality Granger causes HDI but not the other way around. Furthermore, there is evidence of a unidirectional relationship between income inequality and economic activity, indicating income inequality Granger causes GDP but not the other way around. Lastly, there is evidence of a unidirectional relationship between income inequality and the number of individuals within a household, indicating income inequality Granger causes household size but not the other way around. There is also a causal relationship between income inequality and all the independent variables combined, at 1 percent significance level. No causal relationship exists between the number of individuals within a household and all the independent variables combined. Whereas, there is evidence of a causal relationship between the amount spent on social security systems and all the independent variables combined, at 5 percent significance level. There is also evidence that a causal relationship exists between economic activity and all the independent variables combined, at 1 percent significance level, however, not individually. A unidirectional causality exists between the number individuals without a job and the amount spent on social security. This means that unemployment Granger causes social security expenditure but not the other way around. There is also a causal relationship between the number of individuals without a job and all the independent variables combined, at 1 percent significance level.Master
An Analysis of Underemployment among Young Graduates: The Case of a Higher Education Institution in South Africa
No full textLabour markets have undergone vast transformations over the last few years. There are arguments that employment and unemployment measures have not been adequate in understanding the complexities of labour markets. Research on labour underutilisation has focused on one side of the spectrum, which is just about the scarcity of jobs. However, there is more to the labour market than just scarcity of jobs, and many researchers believe unemployment is not a complete measurement of unused labour capacity, which is why this study aimed to investigate the existence of underemployment from the perceptions of young graduates themselves. In this regard, the definition of young people entailed those younger than 35 years as officially defined in South Africa. The study employed a primary data method of data collection in which an online survey was used to collect the necessary data from the alumni database of a South African university. The study used binary logistic regression to determine factors that contributed to or influenced underemployment status. The main findings indicated that underemployment was rife according to age, where younger graduates (20–29 years) were more likely to be underemployed compared to their more mature counterparts; that is, those in the 30–34 age category, with non-White graduates most likely to encounter underemployment compared to their counterparts. This study resulted in important findings that carry significant policy implications and recommendations that may be crucial in correcting the current employment mismatches in the South African graduate labour market
The determinants of employment status of young graduates from a South African University
No full textMCom (Economics)--North-West University, Vaal Triangle Campus, 2016.There has been a debate regarding the extent of graduate unemployment in South
Africa and how it has affected the youth. The main focus of this study was therefore
to identify the determinants of employment status among graduates, particularly the
length of unemployment endured by young graduates in South Africa. The focus on
graduates was necessary, given the understanding that once one has a university
degree, the opportunities to get a job are assumed to be high. It was also on the
premise of the substantial resources that are invested in higher education with the
hope of a higher return. The objectives of the study were categorised into theoretical
and empirical. The theoretical objectives were: to define unemployment and
graduate unemployment, review literature on various types of unemployment,
conduct a review on the problem of youth unemployment from a global, regional and
South African perspective, review the trend of graduate unemployment in South
Africa, and evaluate the factors that affect graduate unemployment.
The empirical objectives were: to determine the average time it takes a graduate to
find employment measured in months, assess if the employed graduates are
employed in their fields of study, determine if degree choice plays a significant role in
the employment prospects of graduates and to establish the personal and social
economic factors that determine the employment status of graduates in South Africa.
In achieving these objectives, a quantitative research method was adopted. The
study used 233 questionnaires collected via an online survey that was circulated to
the alumni database of the university in question. The study employed descriptive,
cross tabulation and a regression analysis to achieve the set empirical objectives.
The study had a well-balanced gender distribution with females making up 58% of
the sample and males 42%. The average time it took graduates in the sample to find
employment after graduation was seven months. Further analysis revealed that out
of the graduates that were employed, more than 70% were employed in their fields
of study with about 27% in jobs that they did not study for. Additional analysis to
determine the state of the graduate’s current job showed that many of them were in
jobs below their desired field, suggesting a problem of under-employment.
The results from the regression analysis indicated that age, race, field of study,
major module and job searching skills were significant predictors of unemployment
length. Religion, gender, and marital status were not significant in this regard. The
study indicated that 11.2% of the surveyed graduates were unemployed and the
majority were between the age of 21 and 24, implying that young graduates are
more likely to be unemployed than their older counterparts. Many of those who were
unemployed had qualifications in Humanities with majors in the arts subjects. The
average job waiting period was also found to be the highest for graduates with these
arts majors. An analysis was also done on the perceptions about graduate unemployment. The results showed that surveyed graduates perceived the lack of job market information, lack of job experience and not having political connections as some of the factors that influence graduate unemployment. In contrast, age, race, self-confidence and higher education institution attended were perceived as factors not having any influence on unemployment among graduates.
The study therefore concluded that the most important factors affecting graduate
unemployment are qualifications and majors held by graduates, which seem not to
be aligned with labour market requirements. This provides an opportunity for higher
education institutions to collaborate with the government and private sector to bridge
the gap that exists in academia and the world of work. Further analysis can be done
on a broader scale by increasing the sample size and doing the same study at
several universities in Gauteng.Master
An analysis of underemployment amongst young people in South Africa : the case of university graduates
No full textPhD (Economics), North-West University, Vanderbijlpark CampusLabour markets around the world are undergoing significant changes which has seen the rate of secure and stable employment decline significantly. South Africa has also not been spared from this wave of change, where besides the country’s high unemployment rate, both at national level and among the youth by global standards, non-standard employment such as casual and part-time work has been on the rise. At the same time, higher education has also proven to no longer be a guarantee of employment, let alone secure/stable and full-time employment. Such rising labour market instability has therefore necessitated the exploration of alternative measures of labour underutilisation, over and above the typical measures of unemployment. Hence the primary objective of the study was to analyse underemployment among university graduates in South Africa. The empirical process followed in the study was based on the post-positivism paradigm which necessitated the use of a quantitative research approach which entailed primary data collection through a survey. The overall sample size after data cleaning was 576 in total. The survey data was subject to a three stage analysis. Firstly, descriptive statistics of the frequency distribution for discrete data. Secondly, a binary logistic regression to determine factors that contribute or influence underemployment status. Lastly, an OLS regression model was employed where three different types of regressions were used to analyse the determinants of the three types of underemployment. The regressions were conducted based on the three main perceptions of underemployment status as indicated in the newly-validated scale called the Subjective Underemployment Scale (i.e. underpayment, hours’ discrepancy and field).
The results of the study showed that 82.6 percent of the sampled graduates were employed (part-time or full time) and that only 17.4 percent were unemployed. Of those that were unemployed, more than 26 percent had been so for more than a year which is indicative of long-term unemployment. The employment findings by gender showed that female graduates constituted a large share of the employed (61.6%) compared to 38.4 percent male graduates. At the same time and as expected, females assumed a large percentage of the unemployed at 63.3 percent compared to males (36.7%). In terms of underemployment, approximately 45 percent of the participants considered themselves underemployed. Concerning the various categories of underemployment, the study found that 36.4 percent were underemployed by income, which entailed workers whose earnings were 20 percent less than what they earned in their previous job1 or 20 percent less than the occupational average income for those in their first jobs. Only 5.1 percent of the sampled graduates were time-underemployed, inter alia, working less than 35 hours a week. About 58.5 percent considered themselves to be underemployed in terms of skills
which was defined as those who perceived themselves to be in jobs where they were overqualified or had the most skills and experience that their counterparts in the same jobs.
South Africa’s higher education institutions have a history of being dualistic which can be divided into historically advantaged institutions (HAI - white) and historically disadvantaged institutions (HDI - black). The study found that out of 351 young people who graduated from HAI, 42.7 percent were underemployed while of the 124 that graduated from HDI, 52.9 percent were underemployed. The study found that in terms of the specific age categorisation, 45.6 percent of the underemployed participants are between the ages of 25 and 29, 31.6 percent are in the 15-24 age category while 22.8 percent are in the age category of 30-34 years. In addition, despite the findings reporting that more female participants are employed relative to their male counterparts, the study’s findings on gender show that in all the underemployment types, young females are overrepresented, which raises concerns of the kinds of employment they are in. About 56 percent of those that were income-underemployed are females compared to 44 percent males. Also, in terms of skills, 64.6 percent of those that were underemployed by skills are females relative to only 35 percent males. These findings are also mirrored in the time-underemployment status suggesting that typical employment indicators do not provide a true picture of employment or rather kinds of jobs that workers are in. Surprisingly, the study found that out of the total number of underemployed participants, 59.9 percent were White, followed by 35.8 percent Blacks, 3.8 percent Coloured and 0.5 percent Asian/Indians. However, within each race group, the findings still mirror themes to emerge from literature that underemployment is more prevalent among non-white workers.
In terms of the perceptions, the results show that a larger share of the participants seems to be in agreement with the underpayment factor where the perception seems to be that their jobs were not paying them sufficient income, relative to their counterparts. Similar findings were also observed with regards to the status factor where a substantial number of the participants perceived themselves as being in positions that were inferior to their level of skills and abilities they possess. The results, however, did indicate a disagreement among the participants when it comes to perceiving themselves as being underemployed in terms of working hours. Perceptions relating to involuntary temporary employment similarly to the hours’ discrepancy factor show that a higher number of graduates did not perceive themselves to be involuntary and temporary employment, suggesting that a higher share is in fact in permanent positions of a full-time nature. In terms of the fifth factor which relates to skills, more than 30 percent of the participants in each scale item strongly disagreed with this factor (68.4%). Last but not least, the perception regarding poverty wage employment showed very small differences between those that identified themselves with this factor (48.3%) and those that did not (51.5%).
The results of the binary logistic regression confirmed what is already in the literature that the younger graduates were more likely to be underemployed compared to their more mature counterparts, that is, those in the 30-34 age category. With regards to marital status, those that were unmarried have a higher likelihood of being underemployed when contrasted with their married counterparts. In terms of geographical location, the regression results found that urban graduates were less vulnerable to underemployment as compared to their counterparts, which in other words imply that rural graduates were more vulnerable to underemployment. Career guidance was also statistically significant in the model where the study found that graduates who received career guidance were less likely to fall in underemployment and that the odds of this was 0.596 higher than participants who did not receive career guidance. Lastly, in regards with race, Blacks and Coloured youth have an increased probability of being underemployed compared to their White and Asian/Indian counterparts.
The second part of the regression analysis entails the use of the OLS model to measure income underemployment, skills underemployment and time underemployment. Pertaining to the first OLS regression on income underemployment, participants who were not married tended to be underpaid which again corresponds with the findings of the logistic regression. Participants who received career guidance perceived themselves as being underemployed due to the income they were receiving at the time of the survey. More findings in terms of age and race show that respondents who were below the age of 24 perceived themselves as underemployed due to the income they were receiving similarly Black youth perceived themselves as being underpaid. The findings of the second OLS regression on skills underemployment showed that again the unmarried graduates were most likely to agree with the perception that they were employed in jobs which were outside their field of studies. In terms of graphical location, the regression analysis found that graduates situated in urban areas tended to agree with the perception that they were underemployed by skills. Lastly, Black graduates relative to white graduates seem to agree with the perception of being underemployed by skills. The third OLS regression found that again, young people in the 15-24 age group are most likely to identify with time underemployment compared to their mature counterparts. In terms of race, Asians/Indians relative to graduates of other races were most likely to be in agreement with perception that they are working less hours than they would like to. From these findings, a model was conceptualised in Figure 7.2 which contributes to a broader understanding of the dynamics present in the South African graduate labour market and may explain the predictors of underemployment among young graduates. Figure 7.3 also provides a framework for reducing graduate underemployment.
Government needs to work with higher education institutions and the private sector to try and better prepare graduates for work. It is crucial to go beyond just getting graduates into employment but ensuring that they are in stable and sustainable employment. The main aim should not just be about reducing youth unemployment numbers through any kinds of jobs but good jobs which utilises an
individual’s time and skills while at the same time earning decently. There is also a need for graduates to play their part in their career prospects by ensuring that they also are soft-skills ready, and reduce their unrealistic expectations in their initial entry into the labour market.Doctora
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