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Type Report
Title The role of post-school education and training institutions in predicting labour market outcomes
Edition 23
Publication (Day/Month/Year) 2017
Publisher Labour Market Intelligence Partnership
City Cape Town
Country/State South Africa
URL LMIP Report 23 WEB.pdf
Attainment of higher education significantly increases earnings. In South Africa, individuals with a higher education level have better employment prospects and are rewarded with higher earnings (Branson & Leibbrandt 2013). Although labour force participation has significantly increased in post-apartheid South Africa, the average participation rate has been low at barely 50%. In the last decade, the labour market has been largely characterised by high unemployment rates averaging 25% (StatsSA 1998, 2013). The graduate unemployment rate has, however, been lower. For instance, in 2013 it was 5.2% for university degree graduates, 12.6% for other tertiary diplomas, and 30.3% for individuals with less than a Grade 12 diploma (Statistics South Africa 2013). Research shows that the unemployment rate declines with the level of education attained; the general consensus in the South African literature is that higher education levels are highly rewarded in the labour market, and the probability of employment increases with education level (Branson & Leibbrandt 2013; Banerjee et al. 2008; Pauw et al. 2008; Dias & Posel 2007). An analysis of higher education labour market outcomes that looks at employment and earnings is a necessary component for understanding the relationship between human capital accumulation and the labour market.

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