OpinionPREMIUM

INSIGHT | Degrees without destiny — yet there is hope

Andile Nduna

Andile Nduna

Opinion page columnist

The Eastern Cape has the second-highest unemployment rate in SA, trailing the North West
The Eastern Cape has the second-highest unemployment rate in SA, trailing the North West. (FILE)

Every year, thousands of young South Africans walk across graduation stages wearing gowns that symbolise sacrifice, hope and achievement. Families celebrate. Parents cry tears of pride.

Communities ululate for children who have become the first graduates in their households.

For many, a university degree or diploma represents the long-awaited bridge out of poverty.

Yet, for an increasing number of graduates, that celebration is followed by a painful reality: an economy that simply cannot absorb them.

SA is facing one of the deepest unemployment crises in the world, and young graduates are now trapped in a contradiction that threatens both social stability and economic growth.

According to the latest Quarterly Labour Force Survey released by Stats SA, the country’s official unemployment rate stood at 32.9% in the first quarter of 2025, with more than 8.2 million South Africans unemployed.

The expanded unemployment rate, which includes discouraged work seekers, climbed above 43%.

The youth remain the hardest hit. Young people between the ages of 15 and 24 continue to experience unemployment rates above 58%, while unemployment among those aged 25 to 34 remains alarmingly high.

Behind these statistics are real human stories.

What makes this crisis particularly painful is that many young people did exactly what society asked of them

There is the graduate with a teaching degree who spends three years submitting applications without a response.

The law graduate back at home in a rural village, carrying both student debt and family expectations.

What makes this crisis particularly painful is that many young people did exactly what society asked of them.

They studied. They persevered.

Yet the economy has not grown at a pace sufficient to create jobs that match the number of graduates entering the labour market each year.

Economic growth has remained below the levels required to meaningfully reduce unemployment, with structural challenges such as energy instability, logistics constraints, slow industrial expansion and declining investor confidence affecting job creation.

And the Eastern Cape presents a particularly complex picture, recording some of the highest unemployment levels in the country.

In late 2025, the province’s unemployment rate exceeded 41%, reflecting persistent structural economic challenges.

Yet this is not the full story.

Beneath the grim statistics lies a changing economic landscape that could create significant opportunities over the next three to five years, if government, industry and educational institutions align effectively.

The province is entering a period where several growth sectors are expected to expand simultaneously.

One of the strongest growth areas is renewable energy.

The province has become one of SA’s leading renewable energy hubs, particularly in wind and solar energy projects.

Areas such as the Sarah Baartman district and parts of the Amathole region continue to attract investment linked to the country’s energy transition agenda.

This growth is expected to increase demand for electrical engineers, environmental scientists, project managers, data analysts, technicians and supply-chain specialists.

Another important sector is automotive manufacturing.

The province remains home to major automotive production plants and supplier industries concentrated around Gqeberha and KuGompo City.

As the global industry shifts towards electric vehicles and greener manufacturing systems, there will be increasing demand for graduates in industrial engineering, robotics, software systems, logistics and advanced manufacturing technologies.

Agriculture and agro-processing also present major opportunities.

The province’s agricultural economy continues to expand beyond traditional farming into value-added processing, export logistics and agri-technology.

Young graduates with qualifications in agricultural science, biotechnology, food technology, water management and environmental sustainability could find increasing relevance in this evolving sector.

Tourism and cultural industries are another underused frontier.

The Eastern Cape possesses immense tourism potential rooted in heritage, eco-tourism and coastline development.

Graduates with skills in digital marketing, heritage management, creative arts, event management, film production and communications could increasingly find opportunities in destination branding and cultural economy initiatives.

Importantly, the province’s public infrastructure drive may also become a key employment catalyst.

Government investment into roads, schools, healthcare facilities, housing and water infrastructure has the potential to stimulate employment not only in construction but also in planning, architecture, engineering, quantity surveying and public administration.

Infrastructure development remains one of the few sectors capable of creating both skilled and semi-skilled jobs at scale.

Then there is the digital economy, as technology continues to disrupt traditional labour patterns.

Remote work, coding, digital services, AI support functions, online education and digital entrepreneurship are opening new avenues for work.

This means universities and technical and vocational education and training colleges must urgently rethink how they prepare graduates.

SA cannot sustainably rely only on government jobs and large corporations to absorb graduates.

Entrepreneurship, co-operatives, township economies, creative industries and small business development must become central pillars of youth economic participation.

There also needs to be greater honesty with young people about labour market realities.

The mismatch between education outputs and labour market demand is one of the country’s most urgent policy failures.

Yet, there remains reason for cautious optimism.

SA still possesses one of the youngest populations on the continent.

If economic reforms accelerate, infrastructure projects gain momentum, renewable energy investment expands and digital opportunities are properly harnessed, the next five years could begin shifting the trajectory for many young people.

This will require partnerships between universities and industries, municipalities that function effectively, and aggressive investment in innovation, technical skills and entrepreneurship support.

Above all, it will require an economy that prioritises inclusive growth rather than survivalist stagnation.

A nation cannot afford to continuously produce graduates who feel forgotten by the economy they prepared themselves to serve.

Andile Nduna works for the department of sport, recreation, arts & culture, writing in his personal capacity


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