SA least optimistic
about jobs

About one-fifth (21%) of employers in South Africa feel optimistic about the future of the African economy. This is revealed in a new pan-African study, the 2025 Africa Workforce Readiness Survey, published by the African Leadership University and conducted by Economic Policy Group.

Those surveyed included 8,000 employers and school leavers across nine countries in Africa, including 405 employers and 488 school leavers from SA.

The research positions SA as the country with the lowest optimism. While school leavers in SA have a more positive outlook, with 40% expressing optimism, this is also the lowest percentage of the countries surveyed.

SA, again, ranked lowest in the survey concerning students’ optimism about employment opportunities, with 39% feeling confident about finding a job after completing education. Their greatest concern about securing a job is that there simply won’t be enough jobs available (62%), followed by having a lack of adequate work experience (60%) and the required skills and knowledge (50%).

The students surveyed were mostly 15-22 and in their final year of study, while the employers were engaged in a range of Small or Medium Enterprises (SMEs), large enterprises, and multinational companies, and held a mixture of entry level, middle management, and senior leadership roles. This research covers school leavers and employers’ views across Africa of higher education, skills and careers, the future economy, and the workplace in the age of AI.

“I am proud to present the ALU 2025 Africa Workforce Readiness Survey, the first of its kind to explore the aspirations of young Africans and the expectations of employers for graduates,” says Veda Sunassee, CEO of ALU.

“This is a pivotal moment for Africa. This survey clearly shows that to unlock the immense potential of young Africans, higher education must focus on leadership, problem-solving, and building strong links with the business world.

“By bridging the gap between education and workforce demands, we can empower Africa’s next generation of leaders to drive meaningful change and shape the continent’s future.”

Skills and experience

Almost all of school leavers in SA (99.6%) say they intend to pursue higher education in the future. Of those, however, only two-thirds (66%) plan to do so in Africa. Overall, 63% of those surveyed say they plan on staying on the continent after completing their education.

At the same time, employers in SA are overwhelmingly concerned about a potential ‘brain drain’ (the migration of talent to countries outside Africa), with 70% of those surveyed believing that it represents a significant issue for the continent’s future.

Two-thirds (66%) of employers surveyed in SA believe that higher education institutions are preparing graduates well for the job market. However, none said that the recent graduates who have joined their organisation have excellent employability skills, and only 35% agree they feel confident that the next generation of graduates can help their business grow – the lowest percentage of all countries surveyed alongside Cote d’Ivoire (35%).

More than two-thirds (69%) say that they are more likely to hire a graduate with practical work experience, and that communication (54%), innovation and creativity (50%), and self-management skills (40%) are what they most look for in their organisation.

By far, the best thing SA’s employers believe that higher education institutions should do to enhance graduates’ job market preparedness, as stated by 81%, is partnering with businesses. Their next top recommendations include focusing more on investing in career services (53%) and developing students’ leadership skills (45%).

The survey shines light on which careers school leavers in SA are most interested in pursuing. Almost one-quarter (24%) said that they would most like to work in the technology and software sector. The non-profit and NGO sector (11%) and social affairs and healthcare sector (10%) are the next most popular choices among those surveyed.

Artificial intelligence

With the rapid rise and proliferation of AI in all aspects of life, businesses and universities are grappling with its potential impact on their services. According to the survey, 36% of school leavers in SA agree that AI is an opportunity for their future career – the lowest of all countries polled.

The survey indicates a high-level of uncertainty about the impact of AI among employers in SA. Just 6% somewhat agree, and none strongly agree, that AI is an opportunity for their business in the future – by far the lowest percentage of all countries surveyed.

However, 8% agree that AI is a risk, with half (50%) planning to integrate it into their business. When asked how they think AI might impact the job market, an overwhelming percentage believe it will lead to fewer employment opportunities (98%) and widen the wage gap (97%).

Key recommendations for higher education institutions

Based on the survey’s findings, ALU has put forward the following core recommendations for higher education institutions:

• Respond to employer needs: Universities should prioritise teaching soft skills and technical abilities.
• Align curriculum with career aspirations: Universities should expand academic offerings and career-focused experiences.
• Enhance work-based learning opportunities: Employers and institutions should partner to offer more opportunities for hands-on work experience.
• Foster public-private collaboration: Universities should work with public and private sectors to fund new programs and infrastructure.
• Assess progress: Universities must monitor their progress in closing the higher education skills gap.

* Visit the African Leadership University website here.