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Introduction
The labour market often lies at the centre of
South Africa's numerous economic growth and
policy challenges. These challenges relate to
issues such as skills constraints,
unemployment, emigration and the impact of
HIV/AIDS. The aim of this publication is to
collate and crystallise the key research that has
been undertaken in these diverse areas.
Ultimately it is hoped that the publication
serves as a useful reference document for
policy makers, unionists and other individuals
and institutions interested in the detailed
workings of the South African labour market.
While clearly not exhaustive, this status report
does attempt to cover a wide set of labour
market issues.
The first section of the repor t examines the
changes in the size of the labour force,
employment and unemployment from 1995 to
1999. The data is disaggregated by sector and
occupation and according to indicators such as
race, gender and education. This is followed
by a more detailed examination of the relative
shifts in demand for labour that have occurred
due to both structural and technological
change. The second section considers the
labour force in terms of its real earnings. We
look at wages, the incidence of poverty and
inequality, and the role of unions. Section 3
then examines two areas of industrial policy
that have been of interest in terms of
employment creating potential. Specifically,
how have small, medium and micro enterprises
(SMMEs) and increased international trade
performed in terms of labour absorption? The
fourth section deals with two issues that
currently characterise the South Afr ican labour
force, that will continue to play a significant
role in the years to come and that are crucial
to consider when formulating labour market
policy. The issues are the impact of labour
migration and the HIV/AIDS pandemic. Finally
conclusions are drawn.
1.1 A note on the data and sources used
The report is a compilation of some of the most
recent research done on the South African
labour market. Most statistics are based on
the October Household Surveys (OHS)
released by Statistics South Africa (STATS SA).
The 2 main years of interest, and the source of
comparisons, are 1995 and 1999. It must be
noted that statistics will differ from those
officially available in instances where
methodologies differ or different weighting
systems have been used. In Section 1, the
research on which this study is based uses 1996
Census weights for both OHS 1995 and OHS
1999 in an attempt to achieve comparability
and consistency. Also, owing to problems with
the measurement of the informal sector in the
OHS 1995, it is not possible to analyse changes
in formal and informal employment separately from 1995 to 19991.
Therefore, in order to
gauge the full extent of employment shifts,
estimates include both the formal and informal
sectors.
Footnote:
-
Bhorat, H (1999).
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