Labour market returns to transversal skills in South Africa: Evidence from online job postings

Abstract

The ongoing issues of unemployment and inequality in South Africa require a unified approach to improve employability through the development of transversal skills. This project aligns with Sustainable Development Goal 8 (SDG 8), which advocates for decent work and sustainable economic development. Transversal abilities, including communication, problem-solving, teamwork, and adaptation, are recognised as essential for success at both individual and organisational levels. However, there is a significant lack of research examining the direct economic effects of these talents in the South African environment, especially regarding earnings and employment opportunities. This article investigated the paramount transversal talents, assessed their returns in the labour market, and analysed their importance for workforce development in South Africa. The findings revealed significant disparities in the economic returns linked to various transversal abilities, with high-demand competencies like project management and business strategy yielding the greatest economic advantages. These findings highlight the necessity for focused skill development programs to improve employability and reduce labour market inequalities in South Africa. It offers implementable sanctions for policymakers, employers, and educators, enabling the synchronisation of skill development policies with the evolving demands of the labour market and promoting inclusive economic growth in South Africa.