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Economic Policy Uncertainty and the Employment Dynamics in South Africa Under the Inflation Targeting Regime

In: Fiscal Policy Shocks and Macroeconomic Growth in South Africa

Author

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  • Eliphas Ndou

    (University of South Africa)

  • Nombulelo Gumata

    (Eldoreigne X3)

Abstract

This chapter examined whether economic policy uncertainty explains the employment dynamics and the reallocation of employment shares between the private and public sectors in South Africa during the inflation targeting period. The results show that an unexpected rise in economic policy uncertainty significantly lowers the total non-agricultural employment growth. However, there is no evidence of significant reallocation in employment shares between the public sector and private sector. This implies that those losing jobs, join the informal sector employment, possibly as they become self-employed. This finding implies that policymakers should implement policies that should lower economic policy uncertainty to benefit employment growth.

Suggested Citation

  • Eliphas Ndou & Nombulelo Gumata, 2023. "Economic Policy Uncertainty and the Employment Dynamics in South Africa Under the Inflation Targeting Regime," Springer Books, in: Fiscal Policy Shocks and Macroeconomic Growth in South Africa, chapter 0, pages 215-220, Springer.
  • Handle: RePEc:spr:sprchp:978-3-031-37755-6_17
    DOI: 10.1007/978-3-031-37755-6_17
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