SA graduates want security but financial sector still a magnet

The recession is officially over, but the situation remains tough for job seekers in South Africa.

Statistics SA has just confirmed that a million jobs were lost in the nine months to the end of September 2009 and the official unemployment rate is up to 24.5 per cent. Even that eternal optimist, president Jacob Zuma, who last year was unable to meet his pledge to create 500,000 jobs, has avoided making any more rash promises in recent speeches.

Young people looking for their first job face a particularly daunting task. School standards are dropping, as the National Professional Teachers' Organisation has acknowledged. "Even though there is talk about the end of the recession being in sight, learners need to realise that they have to upgrade their skills base for the South African job market," says Denise Thomas, an executive with recruitment group Kelly in SA. "Everyone is acutely aware of the gap that exists between current education and training provision and the needs of the labour market."

Her advice is "to gain some experience, as even limited experience sends a message to prospective employers that you have a mature, can-do attitude."

University graduates are in a better position: last year most companies were only replacing critical positions, but activity has picked up in the last few months. A new nationwide survey has found that, as the crisis took its toll, the financial services industry dropped from 2nd to 4th position in the list of most popular sectors to work in. The first is government, the ultimate safe choice. But a job in financial services is still the ultimate ambition for commerce and business graduates: young South Africans dream of finding work with Absa Bank, the first choice, followed by auditing firm Kpmg and the South African Reserve Bank.

The survey was carried out by Magnet Communications, a Cape Town-based employer branding specialist, interviewing over 26,000 students at 23 tertiary institutions.

"It is a truly independent survey and the company listing is generated by the students themselves," says Peter Johansson, managing director of Magnet Communications. "As companies continue to compete for scarce skills and develop recruitment strategies to appeal to fresh graduates, the survey gives employers an indication of the effectiveness of their recruitment strategies and the values which will also retain talent."

For the first time in the six years the survey has been conducted, job security has won out over a high salary or work-life balance in students' top career goals. Clearly the financial crisis and growing unemployment have had an impact on jobseekers' hopes and expectations, says Mr Johansson: "Economic instability in South Africa affects the perceptions of future graduates entering the working world". Another notable change has been young South Africans' willingness to look for work at home rather than rushing offshore for better opportunities, Magnet says: "Students are no longer rushing to pack their bags to gain international work experience."