A significant shift is underway in South Africa's job market, as a third of major companies plan to eliminate degree requirements for certain positions. This move, highlighted in the World Economic Forum's (WEF) Future of Jobs Report 2025, aims to expand the talent pool and address the country's persistently high unemployment rate, currently sitting at 32.1% (with an extended definition reaching 41.9%).
The WEF report, based on a survey of over 1,000 companies globally, reveals that 34% of South African businesses intend to remove degree mandates for specific roles. This decision reflects a growing recognition that practical skills and adaptability are often more valuable than formal qualifications in certain sectors. The report also indicates that 64% of Sub-Saharan African businesses see labour and social issues as key strategic considerations through 2030, with rising living costs and expanding digital access also flagged as critical by 59% of respondents.
This strategic shift towards skills-based hiring is particularly relevant in South Africa, where over 60% of companies cite skills gaps as a major obstacle to growth and transformation. The report projects that the evolving job market will see 19 million new jobs created globally by 2030, offset by the displacement of 9 million existing roles. In the realm of artificial intelligence and data processing alone, the WEF anticipates the creation of 11 million new jobs, while 9 million will be replaced. This rapid turnover underlines the critical need for continuous upskilling and reskilling initiatives, with 39% of workers' key skills expected to change by 2030. South African companies are increasingly investing in these programmes to prepare their workforces for the future.
Beyond the removal of degree requirements, South African businesses are demonstrating a commitment to diversity, equity, and inclusion (DEI). The WEF report shows that 55% of local employers plan to target individuals from disadvantaged religious, ethnic, or racial backgrounds, and 41% aim to support those from low-income communities. These initiatives are not only intended to diversify the workforce but also to foster a more equitable job market, addressing historical inequalities within the South African context.
This proactive approach to inclusive hiring comes against a backdrop of declining hiring activity. CareerJunction’s Employment Insights Report notes a 7.2% drop in hiring over the past two years. However, the steps being taken by companies to remove degree barriers and invest in DEI programmes offer a potential catalyst for more inclusive economic growth, potentially mitigating the impact of the declining hiring activity.
The focus on skills, coupled with a commitment to DEI, represents a significant step towards creating a more accessible and equitable job market in South Africa. The changes signal a move away from traditional hiring practices and towards a more flexible and inclusive approach to talent acquisition. The long-term effects of these changes remain to be seen, but they represent a notable shift in how South African businesses are approaching the challenges and opportunities of the evolving job market.
