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South African Labour Market Update Loane Sharp 2012

South African Labour Market Update Loane Sharp 2012. Unemployment stats. One of post-apartheid’s greatest disappointments is the economy’s failure to create jobs – 13% unemployment in 1994 to 37% currently Official labour force size: 17.4 million of which 13 million formally employed

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South African Labour Market Update Loane Sharp 2012

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  1. South African Labour Market Update Loane Sharp 2012

  2. Unemployment stats • One of post-apartheid’s greatest disappointments is the economy’s failure to create jobs – 13% unemployment in 1994 to 37% currently • Official labour force size: 17.4million of which 13million formally employed • 4.4 million South Africans are currently unemployed • 2.0 million permanently discouraged about their prospects of finding work • 2.1 million people underemployed (Stats SA) • 2.7 million(61%) of those officially unemployed have been out of work for more than a year • Nearly half (46%) of the economically active population is idle, with a staggering proportion (74%) of these under the age of 24 • By any measure, unemployment is easily South Africa’s most pressing socioeconomic problem • Who are the unemployed? • Youth, black African, never worked before

  3. Economic activity and employment Data sources: South African Reserve Bank, Statistics SA.

  4. Problems • Disaffected youth • Increased levels of crime • Political instability and the rise of radicalism • “Xenophobia” • HIV/Aids, alcohol and drug abuse • Significant drain on the country’s financial resources (social grants, NHI, etc) Causes • Restrictive labour legislation – 138th out of 142by World Economic Forum • Wage inflation decoupled from labour productivity • Average wage settlements 2011 – 9.1% (2010 – 8.2%) • Militant trade union activism • Working days lost due to strike action rose from 2.9m days in 2009 • to 14.6m day in 2010 • Education and training not delivering • Regional conflicts resulting in unchecked immigration

  5. Adcorp Employment Index Adcorp Employment Index Data source: Adcorp Analytics.

  6. Typical and atypical employment Typical employment Atypical employment Data source: Adcorp Analytics. Data source: Adcorp Analytics.

  7. Skills shortages Skilled workers’ remuneration Skills shortage by occupation Data source: Adcorp Analytics. Data source: Adcorp Analytics.

  8. Labour vs. capital Usage of labour and capital Data sources: South African Reserve Bank, Statistics SA.

  9. Labour vs. capital productivity Capital productivity Labour productivity Data sources: South African Reserve Bank, Statistics SA. Data sources: South African Reserve Bank, Statistics SA.

  10. Migrating to the informal sector? Number of people trying to start their own businesses Number of people running their own small businesses Data source: Statistics SA. Data source: Statistics SA.

  11. Affirmative action Average Black income Number of high-income Blacks Data source: Statistics SA. Data source: Statistics SA.

  12. Declining union membership Unionization rate by sector Unionization rate Data source: Statistics SA. Data source: Statistics SA.

  13. Strikes and intimidation Strike participation rate Intimidation-related absenteeism Data source: Statistics SA. Data source: Statistics SA.

  14. The trouble with Statistics SA’s estimates Data sources: Statistics SA Quarterly Labour Force Survey (2001-2011). Other sources as indicated.

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