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Exploring the multifaceted dynamics of unemployment in South Africa an investigation into the interplay of economic, social, and policy factors

Author

Listed:
  • Hannah Dunga

    (University of South Africa)

  • Ismael Maloma

    (UNISA)

Abstract

This study aims to examine the causes and impacts of unemployment in South Africa using data from the 2022 General Household Survey conducted by STATS SA. Specifically, it seeks to analyze the demographic and socio-economic factors influencing unemployment rates, explore the implications of unemployment on individuals and society, and identify policy implications for addressing this pressing issue. Unemployment remains a significant challenge in South Africa, with persistent high rates that disproportionately affect certain demographic groups. This study addresses the need for an in-depth analysis of unemployment dynamics, providing valuable insights into its causes, consequences, and potential policy interventions. The study utilizes data from the 2022 General Household Survey conducted by STATS SA, encompassing a total population of approximately 18738 households. The dataset offers comprehensive information on employment status, demographic characteristics, education levels, and household income. Employing the statistical software SPSS, employing a combination of descriptive statistics, cross-tabulation, and a binary logistic regression model, the research uncovers significant disparities across demographic groups, shedding light on the challenges faced by individuals at the household level and advocating for targeted policy interventions. Gender disparities emerge starkly, with female-headed households constituting 44% of the sample yet reporting lower employment rates (34.7%) compared to male-headed households (59.6%). Regression analysis confirms this trend, highlighting the gender-based hurdles in accessing employment opportunities. Furthermore, concerning trends in youth unemployment are revealed, with nearly 40% of individuals under 35 reported as unemployed. Regression analysis demonstrates a negative association between age and unemployment, emphasizing the need for targeted youth employment initiatives. Additionally, the study underscores the critical role of education in enhancing employment prospects, with higher levels of education associated with lower unemployment rates. Racial disparities in unemployment rates are also elucidated, with the Black/African population group facing the highest unemployment rate at 52.3%, significantly higher than the Asian/Indian (37.8%) and White (40.4%) population groups. Regression analysis confirms these disparities, necessitating targeted efforts to address structural barriers and promote racial equity in the labor market. The study recommends, implementing gender-sensitive employment policies, enhancing youth skills development programs, and promoting equitable access to education and training opportunities for all groups. Key Words:Unemployment; South Africa; General Household Survey; gender disparities; youth unemployment; Policy implications

Suggested Citation

  • Hannah Dunga & Ismael Maloma, 2024. "Exploring the multifaceted dynamics of unemployment in South Africa an investigation into the interplay of economic, social, and policy factors," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(4), pages 277-285, June.
    • Handle: RePEc:rbs:ijbrss:v:13:y:2024:i:4:p:277-285
    DOI: 10.20525/ijrbs.v13i4.3338
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    References listed on IDEAS

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    1. Kingdon, Geeta Gandhi & Knight, John, 2004. "Unemployment in South Africa: The Nature of the Beast," World Development, Elsevier, vol. 32(3), pages 391-408, March.
    2. Ayesha Siddiqa, 2021. "Determinants of Unemployment in Selected Developing Countries: A Panel Data Analysis," Journal of Economic Impact, Science Impact Publishers, vol. 3(1), pages 19-26.
    3. Beblavý, Miroslav & Lenaerts, Karolien & Maselli, Ilaria, 2017. "Design of a European Unemployment Benefit Scheme," CEPS Papers 12263, Centre for European Policy Studies.
    4. Zizzamia, Rocco, 2020. "Is employment a panacea for poverty? A mixed-methods investigation of employment decisions in South Africa," World Development, Elsevier, vol. 130(C).
    5. Steven Henry Dunga, 2022. "The common characteristics of employment status during the Covid-19 Lockdown," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 451-457, September.
    6. Jonathan Eaton & Samuel Kortum & Brent Neiman & John Romalis, 2016. "Trade and the Global Recession," American Economic Review, American Economic Association, vol. 106(11), pages 3401-3438, November.
    7. Ismael Maloma & Hannah Dunga, 2023. "Analysis of determinants of poverty in South Africa in the wake of Covid-19 pandemic," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 12(4), pages 400-409, June.
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