Unemployed SET Graduates

27 August 2012

Jansie Niehaus, Exec Director NSTF

Overview

• Anecdotal evidence from NSTF: recent gathering (17 Aug 2012) + National Youth Service (since 2007).

• Cloete, N. (ed). 2009. Responding to the Educational Needs of Post School Youth. Centre for Higher Education Transformation. AND the DHET’s Green Paper on Post School Education (2012)

• News of Adcorp figures (2012) • Branson, Leibbrandt and Zuze. 2009. The demand

for tertiary education in South Africa (SALDRU)

Anecdotal evidence - NSTF

• 17 August 2012: NSTF SET Graduate Gathering, Turbine Hall. One advert in The Star newspaper.

• About 150 responses. (Accepted 70)

• This was the first such meeting.

• (Are planning a series of such meetings, in collaboration with SAGDA, next one 25 Sept)

The advertisement…

Are you a young South African graduate ...

With a National Diploma in Engineering

A Bachelor of Science Degree, or

A postgraduate degree (BTech, Honours, etc)?

Are you struggling to find employment?

Advert (cont)

If so, come and … Meet professionals in science, engineering and

technology, Hear about opportunities for further study, internships,

etc, Gain advice about how to look for a job and keep

motivated. ... You might just find the answers you have been

looking for!

DST’s National Youth Service

• Work at Science Centres, like SciBono, Newtown. • 1 year • About 56 Science Centres across the country – see

SAASTEC – www.saastec.co.za • Do science demos for kids – entertain them, teach

them… • Good monthly stipend • Experience • Contact www.saasta.ac.za - click on National Youth

Service Programme (toward bottom of the menu on the left hand side)

National Youth Service (NYS)

• Implemented NYS on behalf of DST from late 2007 to March 2012.

• Evaluation Report can be downloaded on www.nstf.org.za Click on ‘Youth’ tab, then on NYS on the left hand menu.

• An advert was placed ONCE in 2007: 527 applications were received. (479 from African graduates). The first intake was selected from these: 80 were selected by the 21 participating Science Centres across the country. We only advertised twice over the 4 and a half years.

Numbers in the NYS Programme

• a total of 331 people have been NYS volunteers since the programme began in 2008. Of these, 190 are female (57%). The racial composition of the group of volunteers is: 296 Africans (89%), 11 Coloureds (3%), 16 Indians (5%) and 7 Whites (2%).

• Asked why they had joined the NYS Programme: 78% gave the reason that they were unemployed.

Where did they come from?

• “by far the largest number of NYS volunteers were graduates of the University of Limpopo, followed by the University of Venda. This raises concerns about how well-informed graduates of these institutions are about job opportunities and how to successfully apply for them, and possibly about whether there are additional workplace-related skills that they may need.”

Reasons for exiting the Programme

End of contract 25,2

Employment

offer (contract) 21,5 Employment

offer

(permanent) 36,0 Internship

8,9

What do these numbers suggest?

• We could initially only place 80, or about 15%, of the 527 graduates who applied.

• If the 331 graduates who benefitted from the NYS programme represent only 15% of the unemployed SET graduates, there should be at least another 1876 graduates who could have made use of the programme over the past 4 years.

From the Green Paper on Post School Education, DHET

• Cloete, N. (ed). 2009. Responding to the Educational Needs of Post School Youth. Cape Town: Centre for Higher Education Transformation.

• “A study of post-school youth conducted by the Centre for Higher Education Transformation (CHET) and the Further Education and Training Institute (FETI) has shown clearly the nature of the problem – although it understates it since it excludes young people over the age of 24.”

• 2007 there were 2.8 million people between the ages of 18 and 24 who were not employed. Including 50.7% of the 23 and 24 yr age group!

Numbers of unemployed graduates (<25 yrs) with...

• Certificate with Gr 12 47,035

• Diploma with Gr 12 25,294

• Bachelors degree 9,352

• BTech 1,780

• Post grad diploma 2,498

• Honours degree 1,695

• Masters/PHD 420 (Source StatsSA, 2007)

Definition of ‘Graduate’?

• UCT academic Haroon Bhorat claimed that there were up to a 100 000 unemployed ‘graduates’. This claim led, amongst other things, to the National Treasury restricting the expansion of HE.

• The key graduate unemployment statistics for 2007 are: There were 15 745 graduates unemployed and not studying. [i.e. excluding the Diploma graduates!]

• But in addition, there were 72 329 matriculants with diplomas/certificates unemployed. Thus a possible total of 88 174. With young people from age 25 included, there would probably be a total of more than 100 000.

In 2007, If ‘Graduate’ =

1. Bachelor’s degree, Btech, Honours, upwards: 15 745 unemployed graduates

2. National Diploma, Bachelor’s degree, etc, upwards: 41 039 unemployed graduates

3. Certificate, ND, B degree, etc, upwards: -

88 174 unemployed graduates

“a worrisome trend in graduate unemployment...” :

• Figures for graduates (with B degrees, upwards): 8 581 in 1996, 6 061 in 2001, 15 745 in 2007. • In the 6 years from 2001 to 2007, the number of

unemployed HE graduates increased by 260%. • In the 11 years from 1996, to 2007, the number increased

by 183%. • If this figure was to increase by 200% over the past 5 years,

it was projected as being 31 490 in the current year (2012) • Which is 367% of the 1996 figure (that is, over the past 16

years).

•

Green Paper (cont)

• P 16

• “The response to the crisis of post-school 18–24-year-old youth is not only the responsibility of the DHET. It will involve expanding a range of educational and training (plus internship) opportunities, as well as expanded employment and special youth service programmes.

• “This will require a coordinated response from a developmental state.”

“State to import 50 000 professionals” February 1 2012 at 05:44pm

Business Report (news)

• “The department of Home Affairs has been tasked with facilitating the entry of 50 000 critically skilled professionals including civil, chemical, electrical and mechanical engineers in the next three years”

• Adcorp Employment Index this month showed that were about 600 000 unemployed graduates in the country. Although most did not possess critical or scarce skills…

Engineering

• Engineering Council of South Africa’s 2010/11 annual report showed that there were 10 751 professionals registered as candidates.

• Of that, 2301 had been registered in this candidate category for over six years.

• Only 234 candidates moved to the professional engineer category in the period.

• But not all unemployed engineering graduates are registered with ECSA… [A fee is to be paid, and there is limited benefit in registering]

SALDRU Report (Southern Africa Labour & Development Research Unit), UCT

THE DEMAND FOR TERTIARY EDUCATION IN SOUTH AFRICA

REPORT

September 2009

Nicola Branson, Murray Leibbrandt and Tia Linda Zuze

Objectives of the report:

1. to clarify the relationship between the length of stay in education and access to the job market based on South African household survey data.

2. to contribute to what is known about what influences participation in higher education institutions for young South Africans who have successfully completed secondary school.

SALDRU Report (cont)

• we restrict the sample to 25-35 year olds in the hope that this group will either have completed or be well on the way to completing their tertiary education. Such a view maximises the chances of seeing changes in the demand for post-secondary training.

SALDRU Report (cont)

• The analysis makes use of annual data from the nationally representative September Labour Force Surveys (LFS) between 2000 and 2007. The LFS is a biannual survey with a strong focus on the labour market and therefore includes detailed information on access to both formal and informal employment, earnings and hours of employment. In addition, the survey collects individual and household information including highest level of educational attainment, current enrolment and training.

Formal employment & length of education

• “ The formally employed have, on average, close to an additional year of education when compared to the unemployed in each year.

• ….formally employed South Africans have much higher rates of matriculation completion and tertiary qualification.

• The percentages of matric and tertiary are 36 and 5 percent for the unemployed (respectively).

• The self employed have educational levels in between these two categories, with around 10 years of completed education,…”

Change in the odds of employment:

Change in the odds of Self-employment

Self employment

• Matric is not found to increase the probability of self employment relative to unemployment.

• On the other hand, tertiary study increases the probability of self employment relative to unemployment significantly in most years. Individuals with tertiary qualifications are up to two and a quarter times more likely to be self employed than unemployed.

Variables related to employment probability

• Differences across population groups and gender are evident in all years.

• differences in the probability of being employed exist between the nine provinces…, even after controlling for educational attainment. The Western Cape remains the province where individuals are most likely to be employed. However, … by 2005 individuals in Gauteng were as likely to be employed, controlling for characteristics, as those in the Western Cape.

• Limpopo fares the worst in all years, with individuals less than half as likely to be formally employed in Limpopo as those with equivalent education and demographic characteristics in the Western Cape. This is not true of self employment.

Earnings and type of qualification- Diploma/Certificate

Earnings and type of qualification - degrees

HE Enrolments

• [Although] there is an overall increase in the number enrolled in tertiary, the growth is in line with the growth in the population, i.e. the percentage of the population enrolled in tertiary remains fairly stable at around 3 percent. Given the high rate of growth in the number of private colleges since the 1990s, we see a relatively limited increase in the number enrolled in college. On the other hand, university enrolment has increased the most, with university of technology enrolment numbers decreasing.

Persistent racial inequality

• whites and Indians have a greater odds of attending university over college than Africans in all years.

• …this difference in the odds between Africans and whites appears to have increased over the period. In 2002, whites are just over twice as likely to be enrolled in university rather than college compared to Africans; by 2007 the difference has increased to over three and a half times.

“It’s scary being a young graduate…”

Not only in South

Africa!!

Advice to young graduates

Navigating Your Career

By Dawkins and Codrington, 2012, SA

‘5 Steps to success in the new world of work’:

1. Understanding you

2. Understanding the new world of work

3. Creating possibilities

4. Making it happen

5. Staying on top of your game

2. The World is changing

1. Technology ‘always on’, increasing flexibility (in place & time), work-life

integration, speed, collaborations in virtual teams – across vast distances.

2. Globalisation – the world is getting ‘smaller’ (or ‘flatter’!) – you must be ‘connected’, able to cope with diversity, & be adaptable. Communication skills very important! “Global mindset”

3. Complexity and constant change: Requires levels of understanding only required of senior

management in the past! Everyone has to think and act strategically. = “One of the key defining points of the new world of work”.

Implications of these changes

• “The illiterate of the 21st century will not be those who cannot read and write, but those that cannot learn, unlearn, relearn” (Alvin Toffler, Future Shock, 1970)

• Personal branding: Brand yourself on social media. Job seeking has changed because of the internet!

• Opportunity! - ‘countless opportunities’ for starting small businesses, using the internet.

What do the changes in the world mean for YOU?

a) Get connected

b) Work on your online profile (all the time)

c) (Plan to) Buy the equipment & internet service that you need

d) Improve your computer skills

e) Inform yourself of the ‘big picture’ of the industry you’re interested in.

(Temporary) Opportunities in sciences & engineering

1. Postgraduate bursaries – speak to your university or contact National Research Foundation (NRF).

2. Internships – also NRF

3. “Volunteer” in Dept of Science & Technology’s National Youth Service (DST’s NYS) – contact SAASTA (NRF)

4. Teach Science, Technology, Engineering, or Mathematics!

Post graduate studies (Honours)

National Research Foundation (NRF) www.nrf.ac.za

NRF Scholarships and Fellowships

• Aggregate of at least 60% in their previous

degree to be eligible.

• Have to study FULL TIME, but max of 12 hours of employment per wk, e.g. teaching, tutorials, assistance or demonstration duties.

Natural, social and human sciences, engineering and technology studies in South Africa:

• NRF Free-standing Honours Scholarships for full-time study.

Square Kilometre Array Project

SCHOLARSHIPS AND FELLOWSHIPS PROGRAMME

2012 awards:

• SKA – National Diploma bursaries (2)

• SKA – Undergraduate scholarships (10)

• SKA – Targeted Undergraduate Block Grants (4)

• SKA – Honours & BTech scholarships (6)

Teach??

Funza Lushaka bursary:

• http://www.funzalushaka.doe.gov.za/

• Applications for 2013 accepted from 1 October 2012.

• Approximately 3000 new bursaries available in 2013.

• New applications close on 11 January 2013.

• Expenses covered include tuition, full accommodation including meals, books and learning materials, and a small allowance for monthly living expenses.

One-year Postgraduate Certificate in Education (PGCE)

for graduates whose degrees include majors in priority areas: • • Accounting

• African Languages • Agricultural Sciences • Agricultural Technology • Civil Technology • Computer Applications Technology • Economics • Electrical Technology • Engineering Graphics and Design • English Language • Geography • Information Technology • Life Sciences • Mathematics • Mathematical Literacy • Mechanical Technology • Physical Sciences

Funza Lushaka bursary (cont)

• You will be required to teach in a provincial school, for the same number of years that you received the bursary – this is a contractual obligation.

• Recipients of the bursary must request placement in a province of their choice. The provincial education department (PED) concerned will determine whether there is suitable post available. Bursars cannot choose the school in which they would like to be placed.

Summary of issues

• Uncertainty re exact numbers • Government does recognise the problem • Bottleneck for Engineering graduates • BSc and Hnrs regarded as broad introduction to

an academic discipline – they are not intended as job preparation + not specialised enough for academic work.

• Not enough funding for Honours studies, no part time bursaries for post-graduates

• Graduates lacking basic information & ‘soft’ skills

Summary – What do we need to know?

1. Re unemployed youth, we need a comparable study to that in 2009,(which was based on 2007 data).

2. Disaggregation of ND, B degrees, etc, in terms of SET-related qualifications.

3. Wider sampling (>24 included)

4. Tracking - From each HEI, how many SET and non-SET graduates? How many of each find employment? How long does it take them? Is that employment aligned with their qualifications? How many end up unemployed, & for how long? How many can build a career?

Summary (cont)

5. Is which disciplines is there an oversupply of graduates? In which an undersupply?

6. What are the barriers to post-graduate study?

7. What are the barriers to relevant employment?

8. What are the barriers to alternative (gainful) employment, e.g. teaching?

Summary (cont)

9. What additional skills & knowledge do graduates need?

10. How can HEI’s assist their graduates to prepare for the world of work? What would it take to create a ‘course’ offered by all HEI’s?

11. What else?

Thank you

Jansie Niehaus enquiries@nstf.co.za 012 8413987 www.nstf.org.za