South Africa faces a persistent disconnect between the talent available in the labour market and the qualifications that employers are seeking, according to the latest Pnet Job Market Trends Report for April.
Around half (54%) of job adverts posted in the last 12 months required candidates with a bachelor’s or post-graduate degree. However, only 36% of applicants met these qualification requirements.
Based on actual vacancies posted across the company’s online recruitment platforms, the analysis reveals that the Medical and Health, Engineering and Information Technology sectors face the most significant talent shortages. Conversely, segments such as call centres face an oversupply of skills and high volumes of applications for each role – with many candidates overqualified for the role.
“The mismatch between the available talent and labour market demand is a serious structural challenge for businesses, jobseekers and the broader economy,” says Anja Bates, head of Data at Pnet. “It constrains organisations’ growth and contributes to high unemployment, with ripple effects across the wider economy.”
The latest Pnet report explores some of South Africa’s most pressing skills mismatches by analysing qualification requirements, application trends and talent availability across key sectors:
Medical & Health
The Medical & Health sector experiences a significant imbalance between qualification requirements and available talent. Around 56% of jobs require a bachelor’s or post-graduate degree, but only 41% of candidates meet this requirement. Nursing and Pharmacist roles remain particularly difficult to fill with qualified professionals.
Engineering
South Africa’s Engineering sector reflects a glaring mismatch between labour demand and talent supply with acute shortages of Civil, Structural and Electrical Engineers. Nearly 80% of advertised roles require a bachelor’s or post-graduate degree, but only 48% of applicants meet the requirement. This contributes to fierce competition for talent across the Infrastructure, construction and industrial sectors.
Information Technology
In the IT sector, recruitment bottlenecks are evident for highly specialised roles such as Technical and Business Architects while demand for experienced Software Developers is constrained by limited talent availability. Some 60% of advertised jobs require a bachelor’s or post-graduate degree, but only 42% of applicants have these qualifications.
Oversupply of candidates
While some professions face severe shortages, others experience the opposite problem: an oversupply of candidates. Entry-level and lower-skilled occupations such as Call Centre and Customer Support roles receive exceptionally high application volumes. Some candidates applying for these roles are overqualified. Around 15% of applicants for Call Centre Operator roles have degrees and 51% have certificates or diplomas. However, 83% of roles do not require tertiary education.
The impact of skills gaps
Bates says that persistent skills mismatches impair South Africa’s ability to expand infrastructure, strengthen healthcare systems, and advance digital transformation. At the same time, oversupply of talent in lower-skilled occupations contribute to high unemployment and increased competition for entry-level roles.
For businesses, skills gaps reduce productivity, increase recruitment and training costs, contribute to employee retention challenges, and result in greater reliance on outsourcing and contract resources. Among jobseekers, the imbalance contributes to longer job searches, youth unemployment, and graduate underemployment.
“Many qualified individuals are working outside their fields of study or in roles below their qualification level,” says Bates. “This makes it even more challenging for young jobseekers without tertiary education to break into the job market. For jobseekers, adaptability, continuous learning, and skills development are the keys to differentiating themselves in this labour market.”
Upskilling and continuous professional development can significantly improve jobseekers’ employability and career mobility – particularly in sectors experiencing skills shortages. To improve visibility to recruiters, jobseekers should ensure their profiles remain accurate, complete and up to date – clearly showcasing their qualifications, experience and evolving skill sets.