The labour market discriminates against graduates from historically disadvantaged institutions (HDIs). These graduates have a higher unemployment rate than those from historically white institutions (HWIs).
In addition, African graduates find it harder to secure employment than their white counterparts and they earn less than other race groups.
These findings were released by the Human Sciences Research Council (HSRC) after conducting a survey among university graduates and dropouts between 2000 to 2002. It traced students through the higher education system and their progress in the labour market.
Seven institutions (Wits University, University of Fort Hare, Stellenbosch University, University of the Western Cape, the former Pentech, former Pretoria Technikon and former University of the North) participated in the study conducted between June and September 2005. The survey yielded 5 491 responses (3Â 328 by dropouts and 2Â 163 by graduates).
Comparing unemployment
Project leader of the study, Moeketsi Letseka, said white graduates experienced a 14% unemployment rate compared to 24% for African graduates from HDIs in the business and commerce sectors. Although this indicates a difference of 10 percentage points, the total unemployment rates of Africans who studied at HWIs was lower than counterparts who studied at HDIs.
“The unemployment rate for African graduates in the field of education at HDIs was 39%, the unemployment rate for their African counterparts at HWIs was 11%. The rates for science, engineering and technology (SET) were 58% at HDIs and 43% at HWIs respectively, with white graduates having a 21% unemployment rate,” said Letseka.
Comparing figures across areas of study, the survey found unemployment among African dropouts from HDIs was 70%, but 62% at HWIs and 29% for whites in SET fields. Unemployment among African dropouts at HDIs was 39%, but 19% at HWIs and 17% for whites in education. For business and commerce, unemployment among African dropouts from HDIs was 78% and 59% from HWIs. The figure was not available for whites.
Period waiting for work
“Graduates from HDIs experience longer waiting periods for work. Some had been looking for jobs for longer than two years,” said Letseka. But white graduates experience shorter periods of unemployment.
Letseka said these trends confirm persistent perceptions of the discriminatory nature of South Africa’s labour market. He said it perpetuates the stigma that HDIs are “glorified schools” or bush colleges and that traditionally white institutions offer good-quality education. “This needs to be interrogated.”
He said the labour market needs to recognise these institutions as role players in university access for students. “Universities such as Fort Hare have done an excellent job,” he said. He emphasised that universities’ degree programmes need to be accredited and registered with governing bodies, while they all undergo quality audits by the Higher Education Quality Committee, based on a timetable.
Referring to an article in The Econometric Ecobulletin (2007), he said that because the lion’s share of business is owned by whites, there remains a tendency to recruit from the former white universities rather than from the more rural black educational institutions.
But Letseka said HDIs are not free from blame because they do not brand and market themselves as aggressively as HWIs and they are not as visible in the market place. “They need to go out into the public and tell people what they are about.”
The study indicated that, among dropouts, 70% indicated they found employment to pay for their studies; while 30% indicated they didn’t and were supported either by parents, guardians, relatives or friends or they did odd jobs.
Among graduates, 41% found jobs within three months, 17% within four to six months, 7% between seven to nine months, 11% between eleven to 12 months, 17% between 13 to 24 months and 7% took longer than 24 months.
Sectors in which jobs were found ranged from agriculture to hunting, forestry, fishing, mining, quarrying, utility, construction, retail, repairs, hotels, transport, storage, financial and social services.
Remuneration
The study disclosed that the estimated nominal mean monthly earning for female graduates was R7Â 982, while for male graduates it was almost double at R15Â 195.
The estimated nominal mean monthly earning for African male graduates was R13 072 compared to R14Â 949 for coloureds, R25Â 597 for Asians and R16Â 679 for whites. The estimated nominal mean monthly earning for female African graduates was R9 285 compared to R5Â 905 for coloureds, R7Â 091 for Asians and R7Â 373 for whites.
For Letseka this showed that “males can leave an institution with the same qualification and earn three times more than females. What is it that they do differently?”
He said the high amount earned by Asian graduates raises questions. Is this because they were assimilated into family networks? The estimated nominal mean monthly earnings for dropout African males was R5Â 163, R4Â 182 for coloureds, R5 726 for Asians, and R5Â 363 for whites.
With the exception of coloured female dropouts, other females dropouts earn more than male dropouts: African female dropouts earn R5Â 909 on average, compared with R3Â 886 for coloureds, R7Â 924 for Asians and R7Â 825 for whites.
Letseka agreed with previous HSRC articles by labour market analyst Percy Moleke who argued that the labour market is still racially divided, with whites holding most of the skilled occupations and management positions. “She notes that whites are still over-represented in skilled occupations and their representation at senior management level is relatively high.”
In another HSRC occasional paper released in 2006, Ingrid and Chris Woolard argued that white men are still preferred for positions of responsibility, with consequently better pay.
The findings of this survey will be published by the HSRC Press as South Africa’s Deep-end Dilemma: Why University Students Drop Out. It is due for release in September and edited by Moeketsi Letseka