Economic Growth and Formal Sector Employment

P. Burger

Studies in Economics and Econometrics, 2017, vol. 41, issue 3, 65-84

Abstract: Economic data for the last decade indicates a failure of the South African economy to generate sufficient jobs to absorb the unemployed. With economic growth also underperforming, the question becomes whether the lack of employment growth is due to a lack of economic growth. The objective of this article is to establish the relationship between economic growth and formal sector employment growth (not enough time-series data exist to include the informal sector). Using a Markov-switching method to distinguish economic up- and downswings the article's second objective is to explore whether or not there is a business cycle-related relationship between economic growth and formal sector employment growth.

Date: 2017
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DOI: 10.1080/10800379.2017.12097320

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