Graduates: ‘Hope for best, be prepared for worst’

What does the South African economic recovery plan mean for 2020 graduates?

On 15 October President Cyril Ramaphosa announced an economic recovery and reconstruction plan for a post-COVID-19 South Africa in 2021 and beyond. The official  government document, ‘The South African Economic Reconstruction and Recovery Plan’, states that 2,5 million jobs would be created by the end of 2021/22. 

The government has allocated R100 billion over three years to the plan, which provides for mass employment programmes. These programmes are aimed at ensuring job creation and preservation as well as the creation of 800 000 new jobs for individuals who were unemployed before the pandemic.

Dr. Gabila Nubong, a senior lecturer and political economist at North-West University, says the jobs the government plans to create are in response to the crisis and the need to stimulate the economy. He estimates that it will not significantly alter the fundamentals of the economy since economists expect a global recession because COVID-19 affected businesses and international trade.  A recession means a period of decreased economic activity and growth. 

“New graduates will be competing with the new pool of the unemployed who already have some work experience, so this means a tough competition and work environment for students who are graduating in 2020,” he says.

Nubong says that the economic recovery plan and jobs offered still presents an opportunity for graduating students. “2020 Graduates should be cautiously optimistic,” he says. 

Concerning the overall impact and success of the economic recovery plan, Nubong states that the extent to which the economy responds to the government’s intervention will depend upon factors beyond the intervention itself. “We are witnessing a second wave of lockdowns in the global economies of the North, turbulence in the US following the elections and caution from Asia and not a full restoration of trade and movements within Africa,” says Nubong. These factors will, according to him, delay the full economic recovery of South Africa and ultimately impact graduates and employment.

“The intervention is a step in the right direction, but the domestic and external economic circumstances are mitigating circumstances to be taken into consideration. So again, this calls for cautious optimism [amongst graduates seeking employment],” says Nubong.

He advises students to “hope for the best but be prepared for the worst.”

Ayanda Nkosi has a BA (psychology) qualification and graduated with her honours degree earlier this year. She says that the economic recovery plan and mass employment strategies brings “a sense of hope and confidence.” Seeking employment has been a difficult challenge for Nkosi. “Things were tough before COVID-19 but now they are slightly tougher,” she says.

“My only hope is that we get people who are people-centered and trustworthy to run this plan,” Nkosi says. She has some concerns towards the economic recovery plans such as corruption and the distribution of resources. “We are tired of corruption,” she said.

As a graduating student she still believes that the jobs provided for in the plan will make a difference as long as salaries remain above minimum wage and pay is not used to “exploit the poor and make the rich richer.”

“We need transparency with the processes and integrity so we can restore financial faith in the country,” says Nkosi. The South African Economic Reconstruction and Recovery Plan, encompasses that ‘good governance through the provision of sound fiscal stewardship will be a key focus’. Within the document resource mobilisation as well as the fight against corruption, are identified as two focal points necessary to ensure the success of the plan.

Danielle Cornelius, a final-year student in BA Behavioral Science with majors in psychology and sociology, says there remains a lot of uncertainty concerning her future. “My plan is to build my CV and apply for positions in human resources rather than continuing in a research position because it is a safer and more economically preferable choice,” she said. 

Danielle also has some considerations concerning the availability of jobs, especially in her field of expertise. The South African economic recovery plan gives her little comfort. “Personally I don’t have a lot of trust in the program for two reasons. Firstly, I feel that my degree will not be in high demand. Secondly, there remain many demographic prerequisites in the modern South African society that will not count in my favor,” she says.

Roché Hattingh, a final-year student in BA industrial and organisational psychology and labor relations, has plans for 2021 that do not involve working in her field of study. “I am going to take a moment and go abroad and do my TEFL (Teaching English in Foreign Language) course,” she says. She has some concerns regarding her plans for going abroad. “You are not always welcome in any country,” she says. “Going to a new country means being alone in an unknown environment where I have to start making a living. This will be challenging,” she adds.

There also remains a certain level of uncertainty as  COVID-19 has impacted on international flights which Roché fears may happen again. “They can close international flights which will be a big problem as access to employment abroad will be restricted, especially if you have the job but can no longer get to it.”

If she chooses to work in her field of study in South Africa, she feels there would also be some challenges. “Even if I chose to seek employment in the field for which I studied, I still would not have been able to find a job in my direct environment. I would have to find a job in the city. This would also have been very hard because there are not enough work opportunities in relation to the number of people seeking employment,” she says. 

She thinks the competition for employment will be very steep, especially after COVID-19 and the impact it has had on businesses. “COVID-19 have limited the work availability but this is something that happens everywhere,” she says.

Lurinda Schoeman, a final year pharmacy student, already has a job and will do her internship in 2021. “Pharmacies and pharmacists came out of the pandemic relatively well because unlike other businesses, they did not have to close,” she says. 

Lurinda has some concern regarding the economic recovery plan compiled by Ramaphosa. “I’m not depending on the promise for mass employment, but I still hope that it is true, especially for people who lost their jobs and are struggling financially,” she said. – Business desk