Features of Graduate Underemployment in South Africa: A Study in Mthatha, Eastern Cape Province

This paper articulates the patterns and feel of graduate underemployment in Mthatha, a South African town in the Eastern Cape Province. Foregrounded on Peter Blua’s Social Exchange Theory, this study adopted a quantitative approach. A sample of 60 respondents was drawn from underemployed graduate population through a combination of stratified and random sampling techniques. Data collected from survey (questionnaire) were analysed with appropriate tools in the Statistical Package for the Social Sciences. The study found that majority of underemployed graduates are between 21 and 25 years of age, married, hold bachelor’s degrees in Social Sciences. Gender, qualification type and level of qualification have no significant influence on determining underemployed graduates’ choice of occupation as single and combined variables or factors. While only very few (5%) of the underemployed graduates are never happy at work, femaleness, older graduates, Africans, higher qualification, higher basic salary and longer years of underemployment best predict happiness at work, although not at significant level, except for basic salary. A majority of graduates (73.3%) do sometimes consider leaving their current jobs, even when there are no alternatives. This is influenced by maleness, older graduates, being Whites, higher qualification, lower basic salary and lower years of underemployment. Lack of networking was found to be the most important factor in graduate underemployment, followed by lack of experience and gender not being significant. This study recommends policy intervention by state, where there is legislation that provides for entry level jobs that may not require previous experience. Also, there should be another legislation that protects the underemployed through salary regulation and incentivising of employers that engage workers in such capacity. Keywords: Underemployment, Youth, Graduates, South Africa