How has graduate unemployment evolved since 2008? We situate trends in graduate unemployment in the contexts of improved graduation rates, the shifting composition of graduates, the broader labour market, and public expenditure on higher education.
A forum for economic policy debate
Econ3x3 promotes analysis and debate on unemployment and employment, income distribution and inclusive growth in South Africa. It publishes accessible research- and expertise-based articles and provides a forum for engagement between research and policy making. We invite contributions from economists and other social science researchers, policy advisors and independent experts.
Hannah McGinty, Emma Whitelaw
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Pippa Green
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Siphe Zantsi, Whitney Matli
The inclusion of Saudi Arabia in the BRICS alliance presents a significant opportunity for South Africa to expand its livestock exports, particularly in the lucrative live-goat market. Despite the potential benefits, smallholder farmers face substantial barriers to accessing international markets due to institutional and production constraints. Establishing a reliable export market could not only enhance the income and livelihoods of smallholders but also stimulate goat production, akin to the success observed in the wool industry. However, challenges such as animal diseases and inadequate infrastructure must be addressed to fully capitalize on this opportunity. By navigating regulatory requirements and leveraging the BRICS trade partnership, South Africa can strategically position itself to become a key player in the global goat trade, thereby boosting rural economies and fostering sustainable agricultural development.
Wandile Sihlobo
The agricultural sector has grown measurably in the 30 years of democracy -South Africa is now ranked 59th out of 113 countries in the Global Food Security Index and is the only African country within the world’s top 40 agricultural exporters. The challenge now is how to make that growth more inclusive.
Ivan Turok, Margot Rubin, Andreas Scheba
Inclusionary housing policy offers a new way of addressing the urban housing crisis in South Africa. It involves private developers contributing to the production of well-located affordable housing in return for public incentives. What are the main principles and mechanisms involved in these partnerships? We look at the experiences of three South African cities at different stages of adopting and implementing the policy.
Aimable Nsabimana, Abenezer Zeleke, Justice Mensah
The recent Covid-19 pandemic highlighted the negative socioeconomic impacts associated with disease. But malaria has impacted the health and economic outcomes of people in the tropics for several millennia. The disease is endemic and life-threatening in more than 94 countries, with Sub-Saharan Africa accounting for the highest concentration of countries at risk. Evidence shows that the disease has significant impact on economic development, and also increases gender inequality.
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Editor's Corner
Andrew Donaldson
In this opinion piece on South Africa’s unemployment crisis, Andrew Donaldson argues that while structural reforms are needed to raise growth and broaden development over the longer term, an employment-oriented economic strategy is the central challenge in present times.
Viewed through an elementary growth accounting lens, South Africa’s frontiers of labour-intensive production should be steadily moving out, bringing unemployed human resources into economically useful occupations. We have abundant physical and mental human capabilities searching for work.
However imperfect the adjustment (“tâtonnement”) process, economic theory implies that there should be progress towards full employment, and higher output should flow from the mobilisation of otherwise unutilised capacity. And if markets don’t generate this result, it is a policy coordination function.
It is not that constructive applications are hard to identify. Houses need to be built, roads repaired, food markets expanded, clothing and furniture supplied, safety and security improved, water sources protected, children cared for.
It is not that we lack the know-how or technological capabilities required: these are activities in which knowledge is readily available and there is clear evidence of under-utilised productive capacity. To put unskilled labour to work, we do not need to overcome technological barriers in artificial intelligence, biosciences or big data processing.
It is not that higher production to meet domestic consumption needs might have unsustainable fiscal or balance of payments effects: in horticulture, timber and related products, light manufacturing, and a wide swathe of commercial and hospitality services there are growth opportunities in tradeable goods and tax revenue will flow from expanded activity.
Of course, there are complementarities in the resource combinations required to expand economic activity: engineering skills accompany artisanal capabilities and physical effort on building sites and floor managers oversee the organisation of work in restaurant kitchens and clothing assembly lines.
But the best available theories of skills development suggest that it is the application of learning by “doing” that is the proximate driver of productivity and skills acquisition.