Received: 2026-02-11  |  Accepted: 2026-05-23  |  Published: 2026-06-30

Title

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


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


JEL classifications

J64 , I23 , I26


URI

http://jssidoi.org/ird/article/255


DOI


Pages

136-149


Funding

The research leading to these results has received funding from the South African National Research Foundation (NRF): Grant Number PSTD250404308801.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Iwara, Ishmael Obaeko
North-West University, Potchefstroom, South Africa https://www.nwu.ac.za
Articles by this author in: CrossRef |  Google Scholar

Ojakorotu, Victor
North-West University, Potchefstroom, South Africa https://www.nwu.ac.za
Articles by this author in: CrossRef |  Google Scholar

Journal title

Insights into Regional Development

Volume

8


Number

2


Issue date

June 2026


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 389  |  PDF downloads: 404

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