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

Charles Adams () and Derek Yu ()
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Charles Adams: Department of Economics, University of the Western Cape
Derek Yu: Department of Economics, University of the Western Cape

No 03/2022, Working Papers from Stellenbosch University, Department of Economics

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.

Keywords: Labour market; employment; unemployment; skills mismatch; South Africa (search for similar items in EconPapers)
JEL-codes: J20 J64 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-lab
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