UCT Report Reveals South African Graduates View Degrees as Valuable Investment Despite Tough Path to Adulthood
Cape Town, 08 October 2025 – A fresh study from the University of Cape Town’s Liberty Institute of Strategic Marketing shows that most South African graduates still believe their degrees are worth it, but many struggle to step into full adulthood and financial freedom. The report, called The First 100 Paychecks: An Investigation into South Africa’s New Professionals, found that over 80% see higher education as a smart choice.
However, high living costs, jobs that do not pay enough, student loans and family duties like the black tax make it hard for young workers to stand on their own. This comes at a time when South Africa’s youth face big challenges in finding good work, with many stuck in what experts call emerging adulthood – a stage where they feel not quite grown up yet. Co-author Paul Egan says a degree is still one of the best moves you can make here, even with the hurdles. The study points out how education helps in the long run, with over 75% of graduates in their 30s reaching middle or upper-class homes. But for those just starting out, things look tougher, with more competition for entry jobs and rising costs pushing back big life steps like buying a house. As the country works to grow its economy, this report calls for better support to help new pros succeed and build stable lives.
The findings shine a light on how young South Africans are adapting, like taking side gigs or extra studies, to get ahead in a tough market.
Key Findings on Graduates’ Views and Challenges
The report shows strong faith in education, with more than 80% of graduates seeing it as a valuable investment for their future. Co-author Paul Egan stressed: “A degree is still one of the best investments you can make in South Africa.” He noted that while new grads face rising costs and stiff competition, the long-term wins in money safety and job joy are clear.
But the path is not easy. Many are caught in what psychologist Jeffrey Arnett calls emerging adulthood, feeling in-between teen years and full independence. High costs for basics, jobs below their skills, heavy student debt and family loads like black tax add to the strain.
The study found that holding a degree gives a big edge in the job market, with unemployment at just 12% for grads – way below the country’s 32% average. But the number of jobless grads has more than doubled since 2015, showing how tough it is to land work. Competition is fierce, like the 300,000 grads who applied for 5,500 police trainee spots.
By their 30s, over 75% of grads live in middle or upper-class homes, proving education pays off over time. Still, younger ones struggle more, with home buying pushed back due to high prices – leading to what the report calls Generation Rent.
How Graduates Are Adapting to Tough Times
Despite the bumps, grads are finding ways to cope. The report notes they cut costs, chase side incomes and seek more quals to stand out. Over 80% say their jobs are stimulating and rewarding, showing fulfillment beyond just pay.
Co-author Associate Professor James Lappeman highlighted the wider wins from uni life: “We shouldn’t underestimate the value of the university experience itself. Graduates emerge with lifelong connections, professional credibility and skills that allow them to thrive in diverse environments. These are assets that last far beyond the first job.”
This adaptability points to resilience, but the report calls for more support like better job links and debt relief to ease the start.
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