Labour market trends in South Africa in 2009–19: A lost decade?

Abstract

ABSTRACT While the South African labour market showed some signs of improvement in the 2000s with unemployment rate gradually dropping to as low as 22.7% at the end of 2007, things unfortunately turned downhill in 2009–19 (sometimes referred to as the ‘lost decade’). Using the 2009 and 2019 Quarterly Labour Force Survey data, this study derived descriptive statistical estimates on labour force, employment and unemployment; the empirical findings suggested strongly that patterns in the labour market outcomes deteriorated during this decade. Unemployed individuals were largely black Africans and concentrated amongst the less educated individuals. They remained out of work for longer and, on average, spent more time seeking employment. The data also indicated the presence of hysteresis in unemployment. Key ameliorating policies in this scenario are skills development and structural reform in the labour market. The former is difficult to achieve, even in the long-term, while the latter is politically challenging.