Graduate unemployment in South Africa: Perspectives from the banking sector

Orientation: South Africa is experiencing growth in its graduate labour force, but graduate unemployment is rising with the overall unemployment rate. Graduate unemployment is problematic, because it wastes scarce human capital, which is detrimental to the economy in the long run. Research purpose: This study explores the perceived causes of graduate unemployment from the perspective of the South African banking sector. Motivation for the study: Researchers have conducted various studies on graduate unemployment in South Africa and across the globe, but few studies have been conducted on the causes of graduate unemployment. There appear to be some gaps in the literature; therefore, other problems and solutions to graduate unemployment have to be explored. Research approach, design and method: The researchers followed a survey design. Questionnaires and face-to-face interviews were used as research instruments to identify the perceived causes of graduate unemployment in the banking sector of South Africa. Research participants were unemployed graduates, recently employed graduates and graduate recruitment managers in the banking sector. Main findings: The study shows that several factors are perceived to be the causes of graduate unemployment in the South African banking sector. These include: skills, institution attended by graduate and differences in expectations from employers and graduates. Practical/managerial application: The findings have implications for educational institutions and companies that are encouraged to consider possible solutions to resolving the causes of graduate unemployment. Contribution/value-add: This study is one of the first papers to investigate the causes of graduate unemployment in the South African banking sector. It provides a rich platform for further studies and replication in other sectors, especially within the African context.