Only around one-fifth (21%) of employers in South Africa feel optimistic about the future of the African economy, ranking the lowest any country polled.
This is among the findings of the ALU 2025 Africa Workforce Readiness Survey, published by the African Leadership University.
Even school leavers in South Africa have a more positive outlook than employers, with 40% expressing optimism – although this is also the lowest percentage of any country surveyed.
South Africa once again ranked lowest in the survey concerning students’ optimism about employment opportunities, with just 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 ALU 2025 Africa Workforce Readiness Survey is based on surveys, conducted by Economic Policy Group, of more nearly 8 000 employers and school leavers across nine countries in Africa, including 405 employers and 488 school leavers from South Africa. 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. The 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.
Veda Sunassee, CEO of ALU, comments: “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.
“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.”
Almost all (99,6%) of school leavers surveyed in South Africa 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 all surveyed say they plan on staying on the continent after completing their education.
At the same time, employers in South Africa 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 South Africa 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%).
Sixty-nine percent 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 South Africa’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 also shines a light on which careers school leavers in South Africa 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.
With the rapid rise and proliferation of artificial intelligence (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 South Africa agree that AI is an opportunity for their future career – the lowest of all countries polled.
The survey also indicates a high-level of uncertainty about the impact of AI among employers in South Africa. 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, just 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%).
Based on the survey’s findings, ALU makes 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 programmes and infrastructure.
- Assess progress: Universities must monitor their progress in closing the higher education skills gap.