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Services-led growth in the context of de-industrialization: Opportunities for structural transformation and job creation in South Africa

Author

Listed:
  • Zaakir Asmal

    (Human Sciences Research Council)

  • Christopher Rooney

    (Independent)

Abstract

South Africa’s persistent unemployment crisis, with the unemployment rate reaching 32.0 percent in 2024, has intensified debates about viable pathways for structural transformation, following the sustained decline of the manufacturing sector. This paper investigates whether services-led growth can replace the role of manufacturing and identifies which services subsectors hold the greatest potential for productivity enhancement and employment creation.

Suggested Citation

  • Zaakir Asmal & Christopher Rooney, 2026. "Services-led growth in the context of de-industrialization: Opportunities for structural transformation and job creation in South Africa," ERSA Working Paper Series 327, Economic Research Southern Africa.
    • Handle: RePEc:rza:ersawp:327
    as

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    File URL: https://ersawps.org/index.php/working-paper-series/article/view/327/201
    File Function: First version, 2026
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    More about this item

    Keywords

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    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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