The Sunday Times Economic Analysis                 By the Economist  

Endemic problem of graduate unemployment
By the Economist
Once again attention is focused on the persistent problem of graduate unemployment. The Minister of Tertiary Education disclosed that a survey had revealed that there were 25,882 unemployed graduates. As many as 62 per cent of them were between the ages of 25 and 29 years, while 35 per cent were between 32 to 35 years. As to be expected 62 per cent of the unemployed were arts graduates. As much as 23 per cent of unemployed graduates were from the general science stream and 8 per cent were commerce graduates. Only 8 per cent of graduates from the other streams were unemployed.

The problem is in fact broader; it is one of educated unemployment, not merely graduate unemployment. Ever since the insurgency of 1971 reminded the country of this huge problem, there has been continuous awareness of this intractable issue. It is by no means a problem confined to Sri Lanka.

Even countries that have low rates of overall unemployment have a large number of their graduates unemployed or more correctly underemployed in terms of their qualifications and expectations. Paradoxically many surveys have shown that graduates in general earn much more than those with lesser qualifications do. In fact the pattern has been one of earnings increasing with education while at the same time unemployment increases with educational attainment.

This paradox itself creates its own problem as education is a means of increasing income, provided one obtains a job consistent with one's education. The reasons for unemployment have been analysed for the last three decades or more. The ILO mission on employment, better known as the Seers' Mission, which was in the Island when the insurgency occurred, captured one of the most important dimensions of the problem in the title of their Report-Mismatch Between Expectations And Opportunities.
The educated youth expect certain types of employment once they have reached the GCE Ordinary level or higher.

These expectations rise as they reach university graduation. Not only do these expectations rise with increasing qualifications, there is a view that it is the responsibility of governments to provide them with the kind of employment they seek and consider a right. The recent report also disclosed that 69 per cent of graduates sought employment in the public sector. It must however be recognised that the value orientation of graduates has been modified over time and a larger number of graduates are seeking self- employment opportunities as well as more reconciled to lesser jobs than they expected in the 1970s.

It is not possible to discuss all the dimensions of this very complex problem. A fundamental reason for the educated unemployment is the slow rate of economic growth. Some of the other reasons are an increase in the numbers getting qualified; university education expanding in fields of study that do not ensure employability; the quality of university education deteriorating over the years; the unrealistic expectations of the educated; the extended family system still prevailing in the country not pushing youth to any form of employment; the political system that tends to provide employment to graduates and others in the public sector and the inability of the overall system to adjust upwards the minimum qualifications required for jobs.

A high rate of economic growth is basic to solving the problem of unemployment. The growth of the economy would provide employment opportunities directly to graduates as well as increase employment indirectly in related industry as well as create self-employment opportunities. The tardy and uncertain economic growth experienced for many decades has undoubtedly been a factor in increasing unemployment. On the supply side, both school education and university education have not been particularly appropriate for employment.

The expansion of university education has not been accompanied by suitable changes in the curricula and the expansion has been largely in the arts and humanities streams that do not provide employment opportunities except for the very few who excel in these fields of study. About 60 per cent of university admissions are into these fields. In addition the external degree programmes produce more graduates in the arts. Such educational expansion could be beneficial provided those receiving them do not have expectations of employment based on these qualifications.

This is certainly not the case. They expend their energies and financial resources and undergo many difficulties to obtain the degrees in the expectation of good employment opportunities. In today's technological era and private sector expansion rather than public service employment opportunities, only those whose employment is productive will be employed. These require a multiplicity of skills. Unless university education provides such training it is not likely that the graduates would be employed.

It is to the credit of faculties of some universities that they have developed programmes of study that have provided such a multiplicity of skills such as information technology, communication skills, statistical other analytical, abilities and an improved knowledge of English. In fact graduates with such training crowd out the other graduates when they seek employment and obtain fairly good remuneration packages and promotional prospects. This is a clue for universities to change their curricula to incorporate skills into their undergraduate programmes that complement their specialisation. Some university students have realised the competitive nature of the job market and the need to acquire skills that would get them jobs.

Many graduates therefore obtain full or part professional qualifications in information technology, accountancy, marketing and other fields. Such graduates would be much more employable. The attitudinal aspects are indeed at the root of the problem. Education is expected to provide a job with a higher status. Those youth that have received a secondary and university education consider it below their dignity to take up certain jobs or be self-employed. Therein lies the mismatch between expectations and job opportunities that have aggravated this problem.

The Minister of Tertiary Education has recognised that the problem has another dimension. He has very correctly recognised that his task includes an effort to produce graduates that are unemployable. This is the crux of the University reform issue. It is also a Herculean task in the educational and political milieu in which we find ourselves. The problem of graduate unemployment will continue to persist if appropriate educational reforms are not undertaken. We will be solving the problem of the educated unemployed by employing them unproductively and burdening the already overburdened public coffers.


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