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Labour market trends in South Africa in 2009-2019: A lost decade?

Author

Listed:
  • Charles Adams

    (Department of Economics, University of the Western Cape)

  • Derek Yu

    (Department of Economics, University of the Western Cape)

Abstract

South Africa's high unemployment has long been a key challenge for policymakers. Concerns about the social implications of sustained high unemployment are growing. Using the Quarterly Labour Force Survey data, we present evidence on key labour market trends in 2009-2019 – sometimes referred to as 'the lost decade'. Data suggest that patterns in labour market outcomes evident in the first decade of the 21st century have persisted and, in some ways, further deteriorated over the second decade. The unemployed remained largely black Africans and were concentrated amongst the less educated individuals. They remained out of work for longer and, on average, spent more time seeking employment. In accordance with recent literature, the data indicate the presence of hysteresis in unemployment. Key ameliorating policies in this scenario are skills development and structural reform of the labour market. The former is difficult to achieve, even in the long-term, while the latter is politically challenging.

Suggested Citation

  • Charles Adams & Derek Yu, 2022. "Labour market trends in South Africa in 2009-2019: A lost decade?," Working Papers 03/2022, Stellenbosch University, Department of Economics.
  • Handle: RePEc:sza:wpaper:wpapers373
    as

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    File URL: https://www.ekon.sun.ac.za/wpapers/2022/wp032022/wp032022.pdf
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    References listed on IDEAS

    as
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    5. Wittenberg, Martin., 2014. "Analysis of employment, real wage, and productivity trends in South Africa since 1994," ILO Working Papers 994847703402676, International Labour Organization.
    6. Derek Yu, 2013. "Revisiting unemployment levels and trends in South Africa since the transition," Development Southern Africa, Taylor & Francis Journals, vol. 30(6), pages 701-723, December.
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    More about this item

    Keywords

    Labour market; employment; unemployment; skills mismatch; South Africa;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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