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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.
Keywords:
Employment Outcomes, Labour Market Returns, Policy Implications, Skill Demand, Transversal Skills
JEL Classification:
J24, J31, O15
Introduction
In modern labour markets, transversal skills-commonly referred to as transferable or softskills-have become essential for success in professional settings. These competencies include many interpersonal skills such as communication, collaboration, problemsolving, and flexibility, which augment an individual's employability and productivity. As industries adjust to swifttechnological progress and changing economic conditions, the focus on these competencies has heightened. A report from the World Economic Forum (2022) indicated that more than 85 million jobs worldwide could be displaced by a transition to machines and algorithms by 2025, emphasising the imperative for workers to acquire transversal skills that enable adaptation and promote sustainable career trajectories. This increasing acknowledgement signifies a broader worldwide movement towards appreciating softabilities, transcending just technical proficiency.
The pressing demand for strong transversal skills in South Africa is heightened by the country's elevated unemployment rates, which rank among the highest globally. The World Bank (2023) indicates that youth unemployment in South Africa remains significantly high, aggravating socioeconomic inequalities and impeding economic progress....