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Growth, Employment and Unemployment in South Africa

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  • Duncan Hodge
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    Abstract

    The high rate of unemployment in South Africa stands out in an otherwise vastly improved set of macroeconomic fundamentals compared to the situation in the early 1990s. One might be tempted to argue that by this single indicator alone, government policies such as GEAR have been a failure. This paper explains why jumping to such a conclusion would be a mistake and focuses on the relationship between economic growth and employment and shows how estimates of the employment coefficient have changed over time. This paper finds that the main reason for the persistently high and rising rates of unemployment in South Africa over this period was the very large increase in the labour force and not a deficient growth or employment performance of the economy.

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    Bibliographic Info

    Paper provided by Economic Research Southern Africa in its series Working Papers with number 119.

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    Date of creation: 2009
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    Handle: RePEc:rza:wpaper:119

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    Cited by:
    1. Johannes Fedderke, 2012. "The Cost of Rigidity: The Case of the South African Labor Market," Working Papers 290, Economic Research Southern Africa.
    2. Sumru Altug & Baris Tan & Gozde Gencer, 2011. "Cyclical Dynamics of Industrial Production and Employment: Markov Chain-based Estimates and Tests," Koç University-TUSIAD Economic Research Forum Working Papers, Koc University-TUSIAD Economic Research Forum 1101, Koc University-TUSIAD Economic Research Forum.
    3. Frederick C.v.N. Fourie, 2011. "The South African unemployment debate: three worlds, three discourses?," SALDRU Working Papers, Southern Africa Labour and Development Research Unit, University of Cape Town 63, Southern Africa Labour and Development Research Unit, University of Cape Town.

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