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Haroon Bhorat Development Policy Research Unit, University of Cape Town

Labour Market Challenges in the Post- Apartheid South Africa. Haroon Bhorat Development Policy Research Unit, University of Cape Town e-mail: hbhorat@commerce.uct.ac.za website: www.commerce.uct.ac.za/dpru/.

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Haroon Bhorat Development Policy Research Unit, University of Cape Town

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  1. Labour Market Challenges in the Post-Apartheid South Africa Haroon Bhorat Development Policy Research Unit, University of Cape Town e-mail: hbhorat@commerce.uct.ac.za website: www.commerce.uct.ac.za/dpru/

  2. Measures of Poverty and Inequality by Race & Gender of Household Head and International Estimates Household Head Headcount Poverty Gap Ratio (%) Gini Coeff. Of Variation 38.22 14.2 0.53 1.80 African (0.021) (0.142) 21.51 6.6 0.48 1.13 Coloured (0.022) (0.066) 3.73 0.9 0.47 1.23 Asian (0.006) (0.009) 3.03 0.8 0.46 1.25 White (0.030) (0.008) 26.39 9.2 0.60 1.81 M ale (0.029) (0.011) 43.52 17.0 0.53 1.81 Female (0.027) (0.012) 32.02 11.8 0.60 1.91 Total (0.029) (0.011) International Estimates Brazil 17.4 (1990) 0.607 (1998) Malaysia 15.5 (1989) 0.492 (1997) Venezuela 31.3 (1989) 0.495 (1998) Poland 23.8 (1993) 0.414 (1998) Thailand 13.1 (1992) 0.316 (1998)

  3. A Snapshot of Key Labour Market Trends: 1995-2002 Category 1995 2002 Change % Change Target Employment Growth Absorption Rate Rate Employment 9 557 185 11 157 818 1 600 633 16.75 Unemployment 3 405 014 87.67 (expanded definition) 3 883 819 7 288 833 Labour Force 13 441 004 18 446 651 5 005 647 37. 24 52.38 31.98 Official Definition Estimates Employment 9 557 185 11 157 818 1 600 633 16.75 Unemployment 123.69 (strict definition) 1 909 468 4 271 302 2 361 834 Labour Force 11 466 653 15 429 120 3 962 467 34.56 41.46 40.39

  4. Employment and EAP Shifts, by Race and Gender Target % Change in Employment Growth Rate Employment Absorption Rate Category Empl Change EAP Change Race African 1151396 4118973 66.88 18.69 27.95 Coloured 136292.9 346494.9 30.96 12.18 39.33 Asian 136942.3 242044.3 68.65 38.84 56.58 White 141178.6 254630.6 13.22 7.33 55.44 Other 34823 4 3504 n.a. n.a. n.a. Gender Male 352642 1846391 31.74 6.06 19.10 Female 1247401 3158069 84.45 33.36 39.50 Total 1600633 5005647 52.38 16.75 31.98

  5. Sectoral Share of Employment, 1995 and 2002 % Change Main Sector 1995 Share 2002 Share Agriculture, Fishing & Forestry 1184712 0.12 1477255 0.13 24.69 Mining & Quarrying 593000 0.06 481343 0.04 - 18.83 Manufacturi ng 1420956 0.15 1596496 0.14 12.35 Utilities 84041 0.01 84550 0.01 0.61 Construction 433492 0.05 527678 0.05 21.73 Internal Trade 1650017 0.17 2191347 0.20 32.81 Transport & Communication 469200 0.05 550918 0.05 17.42 Transport 329194 0.03 434613 0.0 4 32.02 Post & Telecommunications 140006 0.02 116305 0.01 - 16.93 Finance, Real Estate & Business Services 582897 0.06 1023373 0.09 75.57 Community,Social & Personal Services 2952269 0.31 3117365 0.28 5.59 Domestic Services 800887 0.08 1132666 0.10 41 .43 Community Services (excl Domestic Services) 2151382 0.23 1984699 0.18 - 7.75 Other Producers 186601 0.02 107493 0.01 - 42.39 Total 9557185 1.00 11157818 1.00 16.75

  6. Main Sector Year Skilled Semi - skilled Unskilled Agriculture 1995 0.01 0.22 0.77 2002 0.01 0.56 0.43 Mining & Quarrying 1995 0.04 0.77 0.19 2002 0.04 0.89 0.07 Manufacturing 1995 0.06 0.74 0.19 2002 0.10 0.75 0.15 Utilities 1995 0.06 0.79 0.13 2002 0.09 0.82 0.08 Construction 1995 0.06 0.74 0.19 2002 0.06 0.74 0 .20 Internal Trade 1995 0.14 0.66 0.20 2002 0.10 0.60 0.30 Transport & Communication 1995 0.15 0.73 0.11 2002 0.22 0.67 0.11 Transport 1995 0.19 0.69 0.12 2002 0.23 0.64 0.12 Communication 1995 0.05 0.83 0.10 2002 0.17 0.78 0.05 Finance 1995 0.17 0.77 0.06 2002 0.25 0.67 0.08 Comm. Services 1995 0.13 0.71 0.15 2002 0.19 0.70 Share of Employment by Three Skills Categories and Main Sector 0.11 Private Households 1995 0.00 0.03 0.97 2002 0.00 0.16 0.84 Unspecified 1995 0.07 0.35 0.17 2002 0.05 0.17 0.04 Total 1995 0.09 0.59 0.31 2002 0.11 0.61 0.27

  7. Unemployment Rates by Race and Gender, 1995 and 2002 Year 1995 2002 Race African 36.16 46.62 ( 0.010) (0.005) Coloured 22.15 29.59 (0.011) (0.011) Asian 13.41 24.57 (0.017) (0.018) White 4.79 9.17 (0.004 ) (0.005) Gender Male 22.68 33.84 (0.009) (0.006) Female 37.32 45.32 (0.011) (0.004) Total 29.24 39.51 (0.005) (0.097)

  8. Unemployment Rates by Education Level, 1995 and 2002 Education Level/Year 1995 2002 No schooling 33.12 32.30 (0.019) (0.012) Primary 35.49 41.38 (0.013) (0.010) Incomp. 2ndary 33.85 48.39 (0.009) (0.005) Matric 25.28 39.51 (0.013) (0.010) Tertiary 6.44 15.37 (0.005) (0.006) Total 29.24 39.51 (0.097) (0.005)

  9. Tertiary Unemployment Rates, By Race, 1995 & 2002 Race/Year 1995 2002 African 10.01 25.95 (0.011) (0.009) Coloured 8.49 9.86 (0.019) (0.020) Asian 5.56 8.21 (0.013) (0.017) White 2.26 4.63 (0.004) (0.005) Total 6.44 15.37 (0.005) (0.006)

  10. Unemployment for Degreed Workers: African & White, 1995 & 2002 African White Unemployment numbers 1995 8834 5645 2002 45959 13597 % Change 420.25 140.87 . Unemployment Rates 1995 5.87 0.01 (0.015) (0.006) 2002 16.41 3.15 (0.018) (0.008)

  11. Degreed Unemployed Distribution by Field of Study and Race Area of Study African Coloured Asian White Total Communication s tudies & language 4.33 0.00 100.00 7.35 5.58 Education, training & development 32.87 41.37 0.00 10.47 28.04 Manuf.,engineering & development 3.9 0.00 0.00 0.00 2.87 Human & social studies 8.55 0.00 0.00 14.66 9.50 Law,military science, security 5.22 22 .18 0.00 3.75 5.48 Health sciences & social services 11.43 36.45 0.00 10.57 12.08 Agriculture & nature conservation 2.2 0.00 0.00 0.00 1.62 Culture & arts 6.62 0.00 0.00 3.92 5.74 Business, commerce & management studies 21.5 0.00 0.00 30.32 22.46 Phys ical,mathematical, computer & life sciences 3.39 0.00 0.00 13.92 5.53 Physical planning & construction 0.00 0.00 0.00 5.02 1.10 Total 100.00 100.00 100.00 100.00 100.00

  12. Number of Unemployed by age, 1995 & 2002 (Unweighted Sample) Figure 1: Number of Unemployed by Age, 1995 & 2002 (Unweighted Sample) 1200 1000 800 1995 Number of Unemployed 600 2002 400 200 0 27 30 33 36 39 42 45 48 51 54 57 15 18 21 24 60 63 Age

  13. The Distribution of the Unemployed Across Households Number of Unemployed Number of Ho useholds Percentage 0 16,513 63.19 1 6,374 24.39 2 2,218 8.49 3+ 1,029 4.00 Total 26,134 100

  14. The Distribution of the Unemployed Across Households, by Race Household Category African Coloured Asian White Other Total 0 Unemployed in household 11,523 1,922 412 2,627 20 16,504 Share 69.82 11.65 2.5 15.92 0.12 100 1+ Unemployed in househo ld 8,457 806 134 217 2 9,616 Share 87.95 8.38 1.39 2.26 0.02 100 Total 19,980 2,728 546 2,844 22 26,120 76.49 10.44 2.09 10.89 0.08 100

  15. Cumulative Distribution of Household Income by Households with Zero or 1+ Resident Unemployed Figure 2: Cumulative Distribution of Household Income, by Households with Zero or 1+ Resident Unemployed 100.00 90.00 80.00 70.00 60.00 Zero Unemployed 50.00 Proportion of Sample 1+ Unemployed 40.00 30.00 20.00 10.00 0.00 0-399 400- 800- 1200- 1800- 2500- 5000- 10000+ 799 1199 1799 2499 4999 9999 Household Income Category

  16. Measures of Poverty by Households with Zero or 1+ Unemployed Resident Measure Estimate Std. Err. 95% Confidence Interval 0 Unemployed in household Headcount 0.52 0.0070 0.5051 0.5326 Poverty Gap 0.35 0.0050 0.3421 0.3618 Squared Poverty Gap 0.27 0.0043 0.2594 0.2763 1+ Unemployed in household He adcount 0.69 0.0047 0.6856 0.7040 Poverty Gap 0.47 0.0037 0.4631 0.4776 Squared Poverty Gap 0.35 0.0035 0.3459 0.3595 Total Headcount 0.58 0.0060 0.5713 0.5947 Poverty Gap 0.40 0.0043 0.3881 0.4051 Squared Poverty Gap 0.30 0.0037 0.2938 0.3082 t - Sta tistics Headcount - 25.87 Poverty Gap - 23.71 * *

  17. Access to Earners within Households, by Household Type

  18. Mean Years of Schooling Amongst Members of the Labour Force, by Household Type

  19. Mean Number of Children and Household Size by Number of Unemployed in Household

  20. Cumulative Distribution of African Household Income By Household with O Unemployed or 1+ Unemployed Resident Figure A: Cumulative Distribution of African Household Income, By Household with 0 Unemployed or 1+ Unemployed Resident 100 90 80 70 0 Unemployed in 60 Household 50 1+ Unemployed in 40 Household 30 20 10 0 0-399 400- 800- 1200- 1800- 2500- 5000- 10000+ 799 1199 1799 2499 4999 9999

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