Why unemployed graduates should start entrepreneurship

Unemployed Graduates In Africa: The Real Problem And TOP 5 Possible Solutions

The unemployment rate in Africa is alarming. The continent has the world’s highest unemployment rate, with most of the unemployed graduates being young.

So, what percent of Africa is unemployed? The youth unemployment rate in Africa is estimated at 60% according to World Bank. This is a ticking time bomb that, if not defused, will have dire consequences for the continent.

Graduate Unemployment

The high levels of unemployment in Africa pose an immense challenge for the continent’s nations. The percentage of graduates unemployed in Africa varies across the continent, with some countries experiencing higher rates than others.

Despite 10 million to 12 million youth entering the workforce in Africa each year, only 3 million formal jobs are created annually (World Bank). This gives us an outlook on the total unemployment rate in Africa.

Are we able to answer the question, ‘how many graduates are unemployed​ in Africa?’ While there is no conclusive data on percentage of college grads unemployed in Africa as a whole, it is clear that unemployment continues to be a significant challenge for many college-educated individuals in the region.

Can this current trend be reversed?

50% of graduates in Africa do not find work each year.

African Center for Economic Transformation (ACET)

Imagine being a recent graduate, eager to use your skills and make your mark on the world, but unable to find a job. It’s frustrating, demoralizing, and downright discouraging.

Keep reading!

You will soon find out how Sole for African Child, a non governmental organization focused on jumpstarting the African Child is helping to address the root causes of unemployment in Africa.

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unemployed graduate working with hand saw

Why is Unemployment so High in Africa?

Unemployment is a major problem in many African nations, and it is particularly acute among the growing population of graduates. With limited job prospects, many graduates all over Africa have struggled to find meaningful employment upon completing their studies. The high number of unemployed college graduates in Africa can be attributed to a lack of skills.

263 million young people will lack an economic stake in the system by 2025.

African Development Bank, Jobs for Youth in Africa: Catalyzing youth opportunity across Africa, March 2016

Despite having a formal education, many graduates lack the practical skills that are necessary to secure employment. This deficit can be traced back to the education system in the region, which often emphasizes rote learning and theoretical knowledge rather than real-world applications.

Additionally, many colleges and universities do not offer internships or practical training programs, which leaves students unprepared for the job market.

Why are college graduates unemployed​? Another contributing factor is the limited availability of job opportunities and the mismatch between the skills needed by employers and those possessed by graduates.

How can these issues be addressed?

Why Are Most Unemployed Graduates In South Africa?

In South Africa in particular, the unemployment rate for graduates is particularly concerning.

With the highest unemployment rate in Africa projected at 35.6% for South Africa (IMF), the highest in the world, the economy of the country has suffered in recent years. As reported by Population Reference Bureau 51 percent of young women and 43 percent of young men are unemployed. This has led to rising unemployment among both unqualified and qualified workers.

South Africa has the highest unemployment rate in Africa slightly over 35 percent
Source: Visual Capital

In South Africa, the unemployment rate for graduates currently stands at 33.5% for the youth (15–24) and 10.2% for those aged 25–34. This figure increased from 30% in 2017 and 33% in 2018. The high rate of unemployment among graduates creates even more unemployment in the country overall, as graduates are unable to make the contributions they should to the nation’s economy.

One in three people are projected to be unemployed in South Africa, the highest in the world.

IMF World Economic Outlook (Oct 2022), Nikei, The Balance Money (2022)

The causes of high unemployment are complex, but one contributing factor has been the lack of jobs available. The South African economy has struggled to create enough jobs to accommodate its growing population.

Why are most graduates unemployed in South Africa? Combined with the fact that graduates in South Africa tend to be more qualified and experienced than the average worker, this has created a difficult situation for graduates in the country.

Unemployed Graduates in Ethiopia

In Ethiopia, graduates’ unemployment is a major issue, with many graduates struggling to find employment after completing their higher education.

The factors identified as contributing to this issue include a lack of skills and experience, a limited job market, and a non-alignment between the skills of graduates and the needs of employers. Additionally, many graduates face challenges in navigating the job market due to a lack of job search skills and limited social networks.

young people protesting

To address these issues, policymakers have emphasized the need to improve the quality and relevance of higher education programs, and to strengthen connections between education providers and employers. Additionally, efforts to improve job search skills and support the development of social networks among graduates may also be beneficial.

Why Are Most Graduates Unemployed In Kenya?

In 2015/2016, the unemployment rate among graduates in Kenya was at 11.4% as stated in the Labour Force Basic Report of March 2018. However, the education sector report by the National Treasury, reported that 80,056 undergraduate students graduated from various public universities in 2021.

Half of jobless Kenyans have given up looking for work, demoralized by reduced opportunities in a difficult economy.

Kenya National Bureau of Statistics (KNBS), March 2021

Similarly, the Kenyan economy has struggled to create jobs for its citizens, but this is compounded by a different factor. In Kenya, the education system is not well-equipped to prepare its people for the workforce. This has resulted in many graduates being poorly prepared for the job market, thus leading to a high rate of unemployment.

Furthermore, the COVID-19 pandemic exacerbated the situation with job losses and company closures.

Unemployment is a ‘privilege’ of the wealthy, with their greater financial security enabling them to wait for an ideal job.

British Council – Universities, Employability and Inclusive Development notes that

The government and other stakeholders have recognized the importance of addressing this issue and various initiatives have been proposed to solve the problem. Nonetheless, it will take a concerted effort from all parties involved to reduce the unemployment rate and provide more opportunities for graduates.

How Many Graduates Are Unemployed In Nigeria?

In Nigeria, the number of unemployed graduates has been on the rise in recent years. Currently, over 50% of graduates in Nigeria are unemployed. This is attributable to a variety of factors, the primary being the lack of job opportunities.

Female unemployment in Africa

Given the size of the country’s economy, it is not able to create jobs for the ever-increasing population of graduates. In addition, many graduates lack the practical skills necessary to succeed in the job market.

Providing African generations of children and youth with health care, education, and employment opportunities, including in the poorest countries and groups, will be critical for the successful implementation of the 2030 Agenda for Sustainable Development.

United Nations, Department of Economic and Social Affairs (DESA), Population Division, World Population Prospects: The 2017 Revision

Mauritius

As of 2021, the lowest unemployment rate in Africa was found in Mauritius. The country’s unemployment rate stood at 7.7% in 2020, which is significantly lower than the continent’s average unemployment rate of around 25%.

This low rate can be attributed to several factors, including a strong tourism industry, a diversified economy, and an active government effort to create job opportunities. Furthermore, Mauritius has invested heavily in education and innovation, which has led to a highly skilled workforce that is adaptable.

While the country has faced economic challenges, such as the impact of COVID-19 on its tourism industry, its consistent efforts to promote economic growth and job creation have helped maintain a relatively low unemployment rate compared to other African countries.

While the country has faced economic challenges, such as the impact of COVID-19 on its tourism industry, its consistent efforts to promote economic growth and job creation have helped maintain a relatively low unemployment rate compared to other African countries.


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The Root of the Problem of Unemployed Graduates

The issue of graduate unemployment in Africa is a pressing challenge facing the continent.

A study by Mesfin Molla Demissie et al. (2021) to identify the factors associated with graduate unemployment in Ethiopia revealed five independent variables that correlate with graduates unemployment. That is, demographic characteristics, curriculum, institutional characteristics, graduate characteristics, and economic and labour market conditions.

The Association of African Universities (AAU) recognizes this and is taking steps to address the issue. According to the AAU, the lack of job opportunities for graduates is due to a number of factors, including outdated curricula, limited access to funds for research and innovation, and inadequate infrastructure for entrepreneurship.

What are other causes of youth unemployment in Africa? They include the global economic system, their governments’ education systems, and the unmatched skills between the youths and the available jobs.

Woes of unemployed graduates in Africa

The Pain of Education in Africa

The pain of education in Africa and the issue of unemployment are closely related.

Despite efforts to improve education, the quality of education in many African countries remains poor, leading to graduates with inadequate skills and knowledge, making them ill-equipped for the job market. This often leads to high rates of unemployment, particularly amongst young people. The lack of employment opportunities results in significant societal challenges, including poverty, social unrest, and decreased economic growth.

A significant number of students were unemployed due to lack of experience or relevant skills, limited job opportunities, and inadequate career guidance.

USIU-Africa Student Employability Survey Report, April – July 2017

Governments and educational institutions must work together to improve the quality of education in Africa, focusing on developing practical and valuable skills that meet the needs of both society and the economy. This will require significant investment, innovation and creative solutions.

One approach to consider is a greater emphasis on vocational training designed to develop specific, practical skills that could increase the employability of graduates in industries that drive economic growth.

Unemployed Graduates In Africa Lack Skills

Kevin Lowden‘s study focuses on the gap between employer expectations and the employability skills of new graduates. According to his research, employers have high expectations of graduates’ employability skills, such as communication, teamwork, problem-solving, and time management.

However, many employers feel that new graduates lack these key skills. Factors such as a lack of work experience, insufficient preparation for the workplace, and unrealistic expectations of the job market all contribute to this gap. Lowden suggests that higher education institutions need to provide more opportunities for students to develop and apply these employability skills, such as through work placements or industry collaborations.

Additionally, there is a need for employers to better communicate their expectations to graduates and to provide more support and training to help them develop these skills. Thus, it is a joint effort between education providers and employers to ensure that graduates are well-equipped with the necessary skills to succeed in the workplace.

Unemployability is not Unemployment

At this juncture, let us make one thing clear.

Unemployability refers to the lack of skills or qualifications required to get a job or advance in a career. It’s a situation where an individual may be actively seeking work but is unable to find employment due to limited knowledge, experience, or expertise. In contrast, unemployment refers to a situation where a person does not have a job but is actively looking for work.

Unemployability and unemployment may seem similar, but they are two different phenomena.

While unemployment can affect anyone, unemployability is often the result of inadequate education or job training. It’s critical to recognize the distinction between the two as unemployability can be avoided by enhancing one’s qualifications through education or training. This is the ‘root of the all problems unemployment.’

On the flip side, individuals who are unemployable can learn new skills to become more employable and increase their chances of landing a job.

Practical Solutions

Industrialization, investments in education, and entrepreneurship are some of the possible solutions to the problem of unemployment in Africa.

Industrialization

To solve the unemployed graduates problem in Africa, the continent needs to industrialize. Promoting cottage industries and supporting value-add initiatives will create jobs and help the youths to be gainfully employed.

A recent university graduate without a job asks now what

Education Investments

The African government also needs to invest in their education system and make it relevant to the 21st century.

British Council

Unemployment is a pressing issue in many African countries, including Ghana, Kenya, Nigeria, and South Africa. To address this challenge, the British Council partnered with universities in these countries to promote employability and inclusive development. Through this partnership, higher education is being repositioned as a tool for equipping graduates with the skills they need to succeed in the job market.

This includes initiatives such as career guidance, entrepreneurship training, and internships. The aim is to create a more diverse and inclusive workforce, with opportunities for all, regardless of background. This project recognizes the critical role of education in transforming economies and society. By investing in higher education, African countries can help to create stable, prosperous, and sustainable societies for future generations.

The United States International University (USIU)-Africa Student Employability Survey

The USIU-Africa Student Employability Survey conducted between April and July 2017 aimed to identify the career and employment preferences of students and their likelihood of being hired by employers after graduation. The survey, which surveyed 483 final-year students from various faculties, found that students found personal skills such as communication, time management, and teamwork essential for future employment.

Additionally, the survey found that students with internship experience or international exposure were more likely to be hired by employers after graduation. The survey also revealed that students’ preferred sectors for employment were Hospitality and Tourism, Banking, and Advertising and Marketing. Finally, the survey recommended that students maximize their internship opportunities and engage in ongoing professional development to enhance their chances of being hired in their preferred sectors after graduation.

AI-Driven World Preparedness

In his book, “Robot-Proof Higher Education in the Age of Artificial Intelligence,” Robert Aou proposes a new model of higher education that will prepare students for the challenges of an AI-driven world. The key to this model is a focus on developing uniquely human skills such as problem-solving, critical thinking, creativity, and empathy.

Aou suggests that universities should adopt a more interdisciplinary approach that combines technical knowledge with broader knowledge of the humanities and social sciences. He also calls for a shift away from a focus on memorization and standardized testing towards more project-based learning and opportunities for experiential and collaborative learning.

Altogether, Aou argues that the goal of higher education should be to equip students with skills that cannot be replicated by machines, so that they can successfully navigate the changing landscape of work and contribute to society in meaningful ways.

Role of Higher Education Institutions

Higher education institutions (HEIs) and governance bodies can boost graduates’ employability by revising the sector’s policy and strategic directions.

A key recommendation is for HEIs to align their curricula with the needs of employers. This would enable graduates to gain relevant skills that would enhance their chances of securing employment within their fields of study.

The root cause of high unemployed graduates in Africa

Entrepreneurship

To combat this problem, the Association of African Universities is working to promote entrepreneurship and innovation among graduates, encourage collaboration between universities and industry, and support research that is relevant to the needs of society. The AAU is also advocating for policy changes that will enable graduates to participate more effectively in the labor market.

Employer Training

In addition, Mesfin Molla Demissie et al study, mentioned earlier, recommends providing training and resources for employers to help them better understand the needs of their workforce and the market trends.

Educational Institutions must collaborate with the private sector to align education with current labor market needs. However, creating an enabling environment for employers to thrive is equally important.

Opportunities

By providing opportunities for internships and work placements, employers can offer valuable professional experience to graduates. This would give students a competitive edge in the job market, increasing their chances of finding work.

African governments and educational institutions must work to reform the education system, focusing on practical skills development and providing more robust internship and job training programs.

Sole for African Child Opportunities

Sole for African Child provides opportunities for young people to get a foothold in their chosen career paths.

Apprenticeships and internships are excellent options for gaining practical experience and professional development. Professional development events, job fairs, and mentoring programs also offer valuable networking and skill-building opportunities.

Educational programs such as vocational schools, trade schools, and community colleges provide young people with the necessary technical skills and certifications to perform in-demand jobs.

We also provide access to value addition training.

In addition to guidance on financial literacy, and volunteer opportunities, we also offer job search assistance to the unemployed graduates. By connecting them with potential employers, both locally and internationally, our goal is to help as many young people as possible to find fulfilling and rewarding careers.

These opportunities allow graduates to navigate and establish their careers and provides them with a strong foundation and pathway towards success.

A sad unemployed graduate girl sitting outdoors

Private-Sector Led Growth

Private-sector led growth is increasingly seen as a promising solution to the problem of unemployed graduates in Africa. By promoting entrepreneurship and private sector investment, governments can stimulate economic growth and, in turn, create more job opportunities for young people.

In order to achieve this, however, governments must create an enabling environment that supports private sector investment, fosters innovation, and promotes the growth of small and medium-sized enterprises. This can involve measures such as reducing bureaucratic red tape, improving access to financing, and developing infrastructure that supports economic activity. At the same time, education and training programs should be reoriented towards building skills that are in demand by the private sector, helping to ensure that young people are equipped with the skills they need to succeed in the job market.

Private-sector led growth has the potential to drive long-term economic development in Africa, creating a brighter future for young graduates and the continent as a whole.

Youth Unemployment in Africa

The high levels of unemployment in Africa pose an immense challenge for the continent’s nations. If the current trend is to be reversed, governments must take action to address the root causes.

A key aspect of this is to improve the education and employability of their citizens. By investing in education and training, African countries can provide their citizens with the skills they need to find jobs and participate in the economy. This will help to reduce poverty and improve the standard of living for people across the continent.

The goal is to equip graduates with the skills and knowledge they need to create jobs for themselves and others, and contribute to the economic growth and development of their countries.

Why are College Graduates Unemployed

The high rate of unemployment among graduates in Africa is a serious problem that needs to be addressed. The causes of the problem are complex, but possible solutions include improving education, providing better access to information and opportunities, and offering incentives for employers to hire graduates. Join us in working to find solutions to this problem by following our organization, commenting on this article, and submitting your CV.


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Sources

  • Africa’s youth unemployment challenge needs a revolution in order to sustain global development. CABI
  • Female unemployment in Africa. The Global Economy
  • In Africa, rising youth unemployment is a ticking time bomb. News Decoder
  • African University Graduates Turn to Entrepreneurship Amid High Unemployment and Migration Challenges. The Africa Brief
  • Donna Clifton and Alexandra Hervish, The World’s Youth 2013 Data Sheet (Washington, DC. 2013). Population Reference Bureau
  • Education professor works to solve Kenyan unemployment crisis. Texas Tech University
  • Cases on Survival and Sustainability Strategies of Social Entrepreneurs. Charles Oham (University of Greenwich, UK). IGI Global
  • How universities in Africa can build job skills for young. Education Sub Saharan Africa
  • The job market is hot. But who’s hiring? Marketplace

Insights

Research

  • Best universities for graduate jobs: Global University Employability Ranking 2017, November 16, 2017. Times Higher Education
  • “Developing Employability: A Beyond-Disciplinary Transformative Approach to Higher and Postsecondary Education” Melanie Booth
  • “Many Business Leaders Doubt U.S. Colleges Prepare Students,” Preety Sidhu and Valerie J. Calderon. February 26, 2014. Gallup
  • “Ready or Not,” Allie Grasgreen. Inside Higher Education
  • “College Students Think They’re Ready for the Work Force. Employers Aren’t So Sure,” Casey Fabris, January 20, 2015. The Chronicle of Higher Education
  • “Graduates’ Unemployment and Associated Factors in Ethiopia: Analysis of Higher Education Graduates’ Perspectives”, Mesfin Molla Demissie et al, Article ID 4638264, 9 pages, vol 2021. Education Research International

Resources

  • About. Developing employABILITY
  • Employers’ perceptions of the employability skills of new graduates, Kevin Lowden, Stuart Hall, Dell Elliot and Jon Lewin, , February 26, 2014. Edge Foundation: London: 24.
  • Universities, Employability and Inclusive Development: Repositioning Higher Education in Ghana, Kenya, Nigeria and South Africa. 2016: 11. British Council
  • “Unprepared graduates are raising our costs, say employers,” Gilbert Nganga. 20 June, 2018 University World News
  • World Employment Social Outlook Trends 2018. Geneva: ILO, 2018: 12. International Labor Organization
Photo credites

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