How education can break unemployment

Since last week, students at the University of Pretoria have not been in class as protests for equal opportunities at South Africa's tertiary institutions spread. A kilometre from the Hatfield campus, Statistician General Pali Lehohla substantiated their plight on Thursday - with numbers.

While releasing the Labour Force Survey, Lehohla said South Africa missed a major demographic dividend opportunity.

The survey found that while close to 90 per cent of graduates participate in the labour force, the white and Indian population claimed the biggest share of jobs for graduates. In the fourth quarter of 2015 almost half of employed white individuals had a tertiary education. 

As for the black and coloured population, more than half of those employed did not have a matric qualification. 

"Those that are educated actually have a much higher absorption rate, much higher labour force participation rate... and I think it forces the discussion into a different paradigm," said Lehohla. The fertility and mortality rates among white South Africans also proved to be lower than other groups.

The survey found that the formal sector, a predominantly educated labour force, grew by 250 000 jobs in the fourth quarter of 2015, while the informal sector, predominantly uneducated, dropped by 37 000 jobs.

Lehohla also compared South Africa's unemployment statistics to that of fellow BRICS countries. Compared to other BRICS partners Lehohla said South Africa has a frightening unemployment-to-population-ratio.

More than 30 per cent of China's labour force has a tertiary qualification while less than three per cent of the country's population is unemployed. Similarly, more than half of Russia's labour force has a higher education qualification and just over five per cent of Russians are unemployed.

Overall South Africa's unemployment rate has dropped in the last quarter of 2015 to 24,5% from 25,5% in the third quarter. There was also a 1,2% increase in employment between October and December 2015.

Lehohla said despite the marginal improvement more than five million people remain unemployed of which more than 65% are below the age of 34.

(File photo: Gallo Images)