A third of major companies in South Africa say that they plan to remove the requirement to have a degree for certain jobs to expand their talent pool and take employment in the country.
This shift, highlighted in the World Economic Forum’s (WEF) Future of Jobs Report 2025, signals a significant move toward creating more accessible pathways to emerging roles, especially as the job market evolves.
The report, which surveyed over 1,000 companies globally, including representatives from South Africa, noted that growing digital access is expected to generate 19 million new jobs by 2030 while simultaneously displacing 9 million.
In Sub-Saharan Africa, 64% of businesses identified the focus on labour and social issues as a key trend shaping their strategies through 2030.
Other factors, such as rising living costs and expanding digital access, were also flagged as critical by 59% of respondents.
In South Africa, where unemployment remains a pressing issue, these developments are particularly significant.
The unemployment rate stood at 32.1% as of November 2024, one of the highest globally, and the extended definition, which includes discouraged job seekers, puts this figure at a staggering 41.9%.
Despite these challenges, businesses are working to address perceived skills gaps—cited by more than 60% of South African companies as a major obstacle to transformation—through targeted initiatives.
To adapt to the rapid evolution of the job market, companies are increasingly prioritising upskilling and reskilling programmes.
Roles in artificial intelligence, machine learning, and robotics are gaining prominence, and the WEF projects that AI and data processing alone will create 11 million jobs while replacing 9 million.
This rapid turnover underscores the need for continuous learning, with 39% of workers’ key skills expected to change by 2030.
One of the most transformative strategies outlined in the report is that 34% of companies plan to eliminate degree requirements for certain positions.
This approach aims to broaden access to high-demand roles that do not necessarily require formal academic qualifications but instead emphasise practical skills and adaptability.
It represents a critical shift in how talent is assessed and matched to job opportunities, particularly in a country like South Africa, where access to higher education remains a barrier for many.
In addition to addressing skills gaps, South African companies are investing in diversity, equity, and inclusion (DEI) programmes.
The WEF report notes that 55% of local employers aim to target individuals from disadvantaged religious, ethnic, or racial backgrounds, and 41% plan to support those from low-income communities.
These initiatives not only help to diversify the workforce but also contribute to a more equitable job market.
This focus on creating accessible opportunities comes against a backdrop of declining hiring activity, as observed in CareerJunction’s Employment Insights Report, which recorded a 7.2% drop in hiring over the past two years.
However, the removal of degree requirements and investment in DEI initiatives offer a glimmer of hope, potentially driving more inclusive economic growth.
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Originally published on BusinessTech