Confidence levels among graduate professionals in South Africa have deteriorated over the second quarter, falling to 57% from 60% in the first quarter, the latest graduate professionals confidence index by investment group PPS shows.
The index tracked the confidence levels of more than 3 000 of South Africa’s graduate professionals. The survey, conducted on a quarterly basis, tracked confidence levels on a variety of issues such as emigration, crime, healthcare and opportunities available in the chosen professions of the graduates.
Gerhard Joubert, the head of group marketing and stakeholder relations at PPS, said the broad deterioration in confidence was concerning as graduate professionals were a key component in the South African labour force, occupying positions in fields such as accountancy, medicine and law, many of which suffer from skills shortages.
Joubert said there might be a number of reasons why confidence deteriorated as much as it did during the period.
“SA’s annual strike season began during the period in which respondents were surveyed, which when combined with discussions regarding nationalisation by key parties is likely to have had an impact on the results. In addition, certain economists also downgraded second-quarter GDP growth forecasts during the period, exacerbating concerns over the economy,” he said.
Still positive
On their confidence of remaining in South Africa, graduate professionals recorded an average confidence level of 81% in the second quarter, down from 84% in the first three months of the year.
“This is still a very positive confidence reading. However, the downward trend is a concern given the skills shortage in many of the professions specific to graduate professionals,” Joubert said.
Respondents were less confident about the opportunities available to practitioners working within their specific profession over the next 12 months, with the survey revealing a decline in confidence to 74% from 77% previously.
Professionals were confident in the protection that the Consumer Protection Act offered their clients, but recorded deterioration in confidence on a variety of macro issues.
Confidence in unemployment improving over the next five years recorded the lowest confidence level of all at just 42% — down from 46% previously. Confidence in the crime situation improving over the next five years also fell to 43% from 45% last time.
A significant decline in confidence was also recorded in professionals’ outlook for local equity markets over the next 12 months, down to 65% from 71% previously. — I-Net Bridge