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Youth unemployment in South Africa since 2000 revisited

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  • Derek Yu

    (Departments of Economics, Universities of Stellenbosch and Western Cape)

Abstract

One of the most pressing socio-economic problems of the South African economy is high youth unemployment. Recent studies only briefly examined how the youths fared since the transition by comparing the 1995 October Household Survey (OHS) with a Labour Force Survey (LFS), and hardly investigated whether the discouraged workseekers are different from the unemployed. Moreover, a new labour market status derivation methodology has been adopted since the inception of Quarterly Labour Force Survey (QLFS) in 2008. Although the unemployed in QLFSs are derived similarly as in OHSs and LFSs, the discouraged workseekers are distinguished very differently. This paper applies the QLFS methodology with minor revisions on all LFSs to derive comparable youth labour market trends since 2000, before re-examining the extent of youth unemployment. The characteristics of discouraged workseekers and narrow unemployed are then compared, before investigating whether different policies are needed to boost youth employment in each group.

Suggested Citation

  • Derek Yu, 2013. "Youth unemployment in South Africa since 2000 revisited," Working Papers 04/2013, Stellenbosch University, Department of Economics.
    • Handle: RePEc:sza:wpaper:wpapers180
    as

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    File URL: https://www.ekon.sun.ac.za/wpapers/2013/wp042013/wp-04-2013.pdf
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    References listed on IDEAS

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    2. Neil A. Rankin & Gareth Roberts, 2011. "Youth Unemployment, Firm Size And Reservation Wages In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 79(2), pages 128-145, June.
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    6. Rulof Burger & Ingrid Woolard, 2005. "The State of the Labour Market in South Africa after the First Decade of Democracy," SALDRU/CSSR Working Papers 133, Southern Africa Labour and Development Research Unit, University of Cape Town.
    7. Derek Yu, 2007. "The comparability of the Statistics South Africa October Household Surveys and Labour Force Surveys," Working Papers 17/2007, Stellenbosch University, Department of Economics.
    8. Morne Oosthuizen & Haroon Bhorat, 2005. "The Post-Apartheid South African Labour Market," Working Papers 05093, University of Cape Town, Development Policy Research Unit.
    9. Carlene van der Westhuizen & Sumayya Goga & Morne Oosthuizen, 2007. "Women in the South African Labour Market, 1995 - 2005," Working Papers 07118, University of Cape Town, Development Policy Research Unit.
    10. Justine Burns & Lawrence Edwards & Karl Pauw, 2010. "Wage Subsidies to Combat Unemployment and Poverty: Assessing South Africa’s Options," SALDRU Working Papers 45, Southern Africa Labour and Development Research Unit, University of Cape Town.
    11. Rees, Albert, 1986. "An Essay on Youth Joblessness," Journal of Economic Literature, American Economic Association, vol. 24(2), pages 613-628, June.
    12. K. Pauw & M. Oosthuizen & C. Van Der Westhuizen, 2008. "Graduate Unemployment In The Face Of Skills Shortages: A Labour Market Paradox1," South African Journal of Economics, Economic Society of South Africa, vol. 76(1), pages 45-57, March.
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    Cited by:

    1. Bhorat, Haroon & Goga, Sumayya & Stanwix, Benjamin, 2014. "Skills-biased labour demand and the pursuit of inclusive growth in South Africa," WIDER Working Paper Series 130, World Institute for Development Economic Research (UNU-WIDER).
    2. Mbulaheni Albert Dagume, 2021. "Determinants of the Job Search Method among Rural Youth: The Case of Vhembe District in South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 11(5), pages 28-36.
    3. Neil Rankin & Gareth Roberts & Volker Schöer, 2014. "The Success of Learnerships?: Lessons from South Africa's Training and Education Programme," WIDER Working Paper Series wp-2014-068, World Institute for Development Economic Research (UNU-WIDER).
    4. Loss, Georg & Naicker, Sara & Richter, Linda & Fink, Günther, 2024. "Early life determinants of social disparities among young adults: A longitudinal study in vulnerable communities in South Africa," World Development, Elsevier, vol. 175(C).
    5. Gbolahan Olowu & Godwin Olasehinde-Williams & Murad Bein, 2019. "Does financial and agriculture sector development reduce unemployment rates? Evidence from Southern African countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(5), pages 223-231.
    6. Wendy Geza & Mjabuliseni Simon Cloapas Ngidi & Rob Slotow & Tafadzwanashe Mabhaudhi, 2022. "The Dynamics of Youth Employment and Empowerment in Agriculture and Rural Development in South Africa: A Scoping Review," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    7. Haroon Bhorat & Sumayya Goga & Benjamin Stanwix, 2014. "Skills-Biased Labour Demand and the Pursuit of Inclusive Growth in South Africa," WIDER Working Paper Series wp-2014-130, World Institute for Development Economic Research (UNU-WIDER).
    8. Zethembe Mseleku, 2022. "Post-University Training for Jobless Market: The Experiences of Graduates in a Work Experience Programme," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 11, September.

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    More about this item

    Keywords

    Youths; employment; unemployment; discouraged workseekers; wage subsidy; labour market trends South Africa;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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