South African Labour Market Research Articles

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

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.

Sorting the Gender Earnings Gap: Heterogeneity in the South African Labor Market

This study explores inequality among Africans in the South African labor market by investigating heterogeneity in the gender earnings gap. The article adds to the existing literature by applying an innovative sorting method, which provides a complete mapping of heterogeneity in the gender earnings gap, ordering the full distribution of the partial effects from largest to smallest with respect to the underlying characteristics of the population of interest. This makes it possible to identify the extent of the dispersion in earnings inequality as well as those characteristics that are associated with very large, as well as very small (or even reversed), gender gaps in earnings. The study also compares heterogeneity in the hourly and monthly gender earnings gap to assess how adjusting for working hours affects the correlates of earnings inequality. HIGHLIGHTS There is significant heterogeneity in the size of the gender earnings gap in South Africa. This is illustrated using a technique that maps the full distribution of earnings differences. Marriage, children, and geography are important sources of heterogeneity. There is more heterogeneity in the monthly, than hourly, gender earnings gap.

Examining the South African labour market during the COVID-19 lockdown period

ABSTRACT This study analysed the 2020 first quarter to 2022 second quarter waves of the Quarterly Labour Force Survey (QLFS) data and all five waves (2020–21) of the National Income Dynamics Study – Coronavirus Rapid Mobile Survey (NIDS-CRAM) data to examine the South African labour market outcomes during the COVID-19 lockdown period. The QLFS data showed that low-educated Africans aged 25–44 years and those involved in low skilled occupation categories were most vulnerable to job loss. The NIDS-CRAM data indicated that for those who still worked in February 2020, 51% worked all five waves, 14% worked in four waves and 9% worked in three waves. Only 0.5% and 1.8% turned out to be unemployed and inactive in all waves, respectively. For the February 2020 employed who lost their jobs and became unemployed in April 2020 (wave 1), 60% of them worked again but 22% remained unemployed in March 2021 (wave 5).

Precarious Work and the Gendered Individualisation of Risk in the South African Manufacturing Sector, 2002–2017

Against the backdrop of workplace restructuring globally, post-apartheid South Africa is experiencing consistently high levels of unemployment, the deterioration of employment security and limited improvements in earnings. This article investigates the changing nature of labour-intensive production in the South African labour market and the gendered individualisation of risk associated with precarious or non-standard forms of employment. The article expands on the critical theoretical narrative about the challenges of labour under neo-liberalism by applying a gendered political economy analysis to the experiences of precariousness among workers in the South African manufacturing sector. By focusing on the interconnections between gender and political economy, this article delinks questions about the crisis of labour from a narrow focus on skills and refocuses our understanding in terms of the structural determinants of vulnerabilities in the labour market. The article argues that the gender composition of informal and precarious work in the post-apartheid labour market has significant implications for addressing the persistent racialised and gendered inequalities in the South African economy. KEYWORDS: labour market restructuring; informal employment; precarious work; gender JEL CLASSIFICATION: J21; J30; J71; J80

Governing policies and factors affecting the labor market integration of female accompanying spouses.

This study sought to ascertain the macro governing policies and factors that influence the integration of female accompanying spouses in the Free State, into the South African labor market. Utilizing a qualitative approach, thirteen one-on-one interviews, consisting of an initial purposive sample and a subsequent snowball sample, were conducted for data gathering. The study employed thematic analysis to interpret the data. The findings revealed that governing policies emerging from South Africa's migration legislation, and factors such as spouse dependence, reinforcement of traditional gender roles, and restrictive employment legislation which forced deskilling of qualifications, mainly impacted the conduct of accompanying spouses concerning the labor market. This study contributes to the literature on labor market integration (LMI) from an underexplored South-to-South standpoint by delving into the experiences of skilled female migrants in the family migration setting. A neglected facet of Michel Foucault's governmentality theory was used to investigate the labor market assimilation needs of female accompanying spouses. The study's qualitative approach renders the findings much less generalizable than a quantitative inquiry. It is important to note that LMI research is considerably setting-specific, despite some aspects of this study being applicable to other settings in the Global South. South Africa continues to be a pivotal regional hub for migration in the Global South, yet it has a complex migration governance framework that sets up a specific, while broadly exclusionary, macro context for accompanying spouses. This study zones in on issues that could inform more effective family migration policy.

WHY SHOULD THE STATE INTERVENE IN THE LABOUR MARKET: THE CASE OF SOUTH AFRICA

Labour remains at the centre of political, social, and economic discourse in South Africa. Two broad perspectives dominate the political discourse as to why the state should intervene in the labour market. The first is the laissez-faire, free-market model,and the second, known as ‘social justice’ –a concept generallyused to justify government intervention and the distribution of resources –is a perspective that stresses the need for social justice in the workplace in a variety of ways. This article explores which of these views will best protect workers –referred to in the context of the inadequacy of the contract as a mechanism to regulate the employment relationship –in an ever-changing South African labour market characterised by poverty, unemployment, inequality, the growth of the informal economy, an inflow of migrants, the digitalisation of the economy, and the impact of the Covid-19 pandemic. The author concludes by supporting the view that upholds social justice in the workplace.

A framework for the labour market integration of female accompanying spouses in South Africa

Orientation: The 2030 Sustainable Development Agenda highlights that migration is key to inclusive growth and economic development. For economic development to be realised, the full integration of skilled migrants into the labour market is essential.Research purpose: This research aimed at exploring the labour market experiences and self-initiated strategies of accompanying spouses, also referred to as tied migrants, in their attempt to achieve labour market integration (LMI) in South Africa.Motivation for the study: Skilled migration of tied migrants remains understudied in the Global South context. Thus, this study sought to fill this gap.Research approach/design and method: The study used a qualitative research approach to interrogate the experiences of accompanying spouses in South Africa. Thirteen one-on-one interviews were conducted, each lasting for 1.5 h on average. Thematic analysis was applied to the data.Main findings: Self-initiated strategies that reflect agency and a pushback on governing technologies by accompanying spouses can facilitate integration into the South African labour market. However, these strategies do not guarantee full LMI. The broad exclusionary context, premised on ethnicised rationalities that characterise the South African labour market, makes full LMI difficult to achieve, particularly in the absence of support for integration.Practical/managerial implications: This study makes practical contributions by making policy recommendations which consider the global agenda for women, especially concerning gender equality and empowerment.Contribution/value-add: Skilled migration in the global south remains significantly under-researched and there is evidence of significant gaps in literature particularly pertaining to migration by skilled women migrants. This research contributes to bridging this gap.

Perspectives on employers’ expectations on tertiary education graduates’ employability skills in Eastern Cape, South Africa

Given that undergraduates, graduates and tertiary institutions of higher learning are uncertain Given that undergraduates, graduates, and tertiary institutions of higher learning are uncertain regarding the expectations of employers in the work organizations on the skill that graduates possess, the study presented in this paper attempts to provide some meaningful clues in that directions. The study followed a research question that interrogates what employability skills employers expect graduates to possess for an entry-level job. Designed as a descriptive study, a quantitative research approach was chosen, where the survey method of data collection was employed through a closed-ended structured questionnaire. The study targeted employers (managers) of public and private work organizations in the health and education sectors in a South African town Mthatha, from where a sample of 41 participants (representing organizations) was drawn. The study employed a stratified random sampling in selecting the participants, which ensured that the principle of selecting representatives of the target population was met. Data collected from the participants were analyzed by the use of selected descriptive tools. The analyzed data revealed that all employers expect graduates to possess all the 13 skill areas that employees require to function in the workplace. Surprisingly, the employers mostly expect least from the young graduates in terms of quantitative skills and leadership capabilities. While this finding corroborates what exists in the literature, it provides a new dimension with regard to priority skills needed by employers in the South African labor market. The study, therefore, recommends that the work organizations and higher institutions of learning should form a partnership and a close relationship so that they can assist one another in building the employability skills of graduates.

How useful is post-graduate education in biochemistry for entry into the South African labour market?

Biochemistry encompasses a broad range of life science disciplines. Unlike more vocational disciplines such as pharmacy or medicine, the career path associated with biochemistry is less clearly defined. An important question is whether the skills set provided by post-graduate biochemistry education, defined as BSc (Hons.), MSc, or PhD degrees, is aligned with the requirements of a career in academia or industry. This article reports on former post-graduate biochemistry students and their careers and aims to establish whether former post-graduate students perceive a post-graduate qualification in biochemistry as useful for entry into the job market. This article is based on responses of 64 former post-graduate biochemistry students from South African universities who have graduated between 2010 and 2019. Findings show that most post-graduate biochemistry graduates continue a career in academia after graduating. Some pursue a career in the industry, while a very small number of biochemistry post-graduates are currently unemployed. These findings suggest that a post-graduate degree in biochemistry provides the necessary scientific and research skills sought after by the employment sector in South Africa.

Tied Migrant Labor Market Integration: Deconstructing Labor Market Subjectivities in South Africa.

The South African labor market is characterized by a high degree of inflexibility and complexity which poses significant challenges for both indigenes and migrants looking to be integrated into the labor market. These challenges are likely to be more poignant for international migrants as they face additional barriers owing to a chronically high employment rate, xenophobic sentiments, and racial exclusion. For female tied migrants, gender bias, expressed through migration policies and legislation, adds yet another layer of complexity to long-term aspirations of settling in South Africa. How well tied migrants fare in the South African labor market is an important matter for consideration. Using an intersectional approach and the theory of governmentality, this study sought to deconstruct the labor market subjectivities of tied migrants in South Africa. This paper used a qualitative approach, with a narrative and interpretivist research paradigm, on female tied migrants from Sub-Saharan Africa who either accompanied their husbands or followed them to South Africa in a process of family reunification. Although 13 interviews were carried out in total, as part of a broader study, the narratives of six participants were included in this study, to zone in on labor market experiences. The study found that despite their high human capital, tied migrants are not likely to be well integrated into the South African labor market. Their inequality in the South African labor market was attributed to their gender, ethnicity, race, migrant status and locality and various intersections thereof through which they are subjected to informality, immobility and precarity.

Inflation dynamics in an emerging market: The case of South Africa

The literature on the Phillips curve in South Africa finds little evidence of the effect of demand pressure on the inflation rate. Using quarterly data from 1960–2020, this paper shows that the Phillips curve exists in South Africa and the coefficient that relates the level of economic activity and inflation has been remarkably stable since the 1970s. We argue that the findings in the literature are due to mis-specification of the Phillips curve relationship and the inadequate consideration of key political events that shocked the South African labour market in the 1970s.

Self-perceived employability among undergraduate students at a South African university

Orientation: South Africa has been suffering from persistently high levels of unemployment since 2008. The youth is regarded as the most at-risk group in the South African labour market and unemployment amongst the youth is considered one of the most critical socio-economic problems in South Africa. Increasing one’s employability is essential to securing employment and enhancing one’s well-being.Research purpose: This study aimed to explore the self-perceived employability of undergraduate students at a South African university.Motivation for the study: Currently, there is a scarcity of published research on the self-perceived employability amongst undergraduate students at higher education institutions in South Africa.Research approach/design and method: The study was conducted within a positivistic research paradigm. A quantitative-based cross-sectional survey design was used. Convenience sampling was used to select the students who were included in the survey. Data were collected through a web-based survey, using a standardised coded questionnaire that consisted of a five-point Likert-type scale.Main findings: The results indicated that the respondents were relatively confident about their internal employability, but they were less confident about their opportunities in the external labour market.Practical/managerial implications: Understanding one’s employability and the accompanied issues creates awareness of one’s potential, skills and knowledge to become a successful citizen and employee.Contribution/value-add: The study shed light on the self-perceived employability of undergraduate students at a South African university and consequently contributes to the existing literature on employability in the South African context.

Inequality in the South African labour market: The political economy of the national minimum wage

In 2019, South Africa implemented a national minimum wage (NMW) for the first time. This is an important intervention, given that the South African labour market continues to generate some of the highest levels of income and wealth inequality in the world. The minimum wage is intended as a structural intervention to transform the labour market by setting a wage floor, while highlighting larger issues that continue to reproduce inequality in the labour market. The process raises interesting questions about the role of social dialogue in the policy making process, especially at a time when the roles of experts and evidence are contested in political economy. This article reviews the national minimum wage process from two angles: assessing the economic evidence and examining the political economy of minimum wages in South Africa. We take this approach in order to better understand the roles of evidence and politics in the policy making process. While both processes were contested, important differences emerge from the analysis: the economic lens highlights the intersection of evidence and ideology, while a political economy review identifies important lines of contestation in the policy making process itself. The national minimum wage process shows that institutionalised social dialogue continues to be a central part of the policy making process, but that it cannot be taken for granted: the particular configuration of the social dialogue process and the roles assigned to each player matter.

The Relationship between Employment Relationship, Employment Relations Satisfaction and Psychological Contracts in the South African Public Sector Workplace

The Global Competitiveness Report of 2014 rated the South African labour market as the lowest (137th position) out of the 137 countries measured with regard to employment relationship, which included cooperation in labour–employer relations. In the 2018 report, 148 countries were rated, and again South Africa was placed in the last position. The antagonism that continues to characterise employment relationship in the South African workplace in general and the public sector in particular has impacted equally negatively on employment relations satisfaction and the fulfilment of the psychological contract. This article explores the interrelationship between the three variables (employment relationship, employment relations satisfaction and psychological contract), and the effect that each has on workplace relations in general. The study adopted a quantitative research approach and used a survey design. A proportionate stratified random sampling method was used to determine the sample size, and the data were collected through a structured questionnaire. A scientific analysis of the data results revealed that psychological contract was a mediator and that employment relationship was a predictor that had a direct influence on both psychological contract and employment relations satisfaction. Based on the mediation results, the researchers reached the conclusion that employment relationship and employment relations satisfaction were both influenced by psychological contract. Therefore they recommend that, to improve relationships in the South African workplace, management and employees should invest more effort in encouraging a positive employment relationship and the fulfilment of psychological contract obligations.

Xenophobia in the labour market: A South African legal and human rights perspective

This article focuses on xenophobia in the South African labour market and the effect it can and does have on foreign employees. In contrast to current scholarship that portrays xenophobia in South Africa as a consequence of anti-immigrant sentiments and stereotypes that stem from social, political, economic and cultural misconceptions, this paper argues that the causes of xenophobia are much more complex than that. In addition to those misconceptions, it is argued, xenophobia in South Africa may well have its genesis in the pre-1994 apartheid and colonialism era which sought to impose segregation and instill hatred between and among black people. The main argument in the paper, however, is that the South African legal framework and its implementation do not go far enough in addressing the problem of xenophobia in the workplace. As a result, the rights of foreign employees are negatively impacted and not sufficiently protected. To underscore this point, the paper undertakes a discussion on the legal framework and the pertinent human rights implications of xenophobia in the South African labour market before making some recommendations on what can be done to protect the rights of foreign employees better and reduce or prevent xenophobic attacks against them.

Occupational Gender Segregation in Post-Apartheid South Africa

This study shows that occupations in South Africa are segregated and stratified by gender. While some women (mostly Black and “Coloured”) overwhelmingly fill low-paying jobs, others (mostly White and Indian/Asian, but also Coloured) tend to fill higher-paying professional positions. This paper finds evidence of a long-term reduction in gender segregation and stratification, with women and men entering occupations previously dominated by the other gender, although this trend is sensitive to several data considerations. Most recent evidence, however, points to stagnation in this process. Distinct worker characteristics by gender – including education, location, or age – cannot explain the existing segregation or women's overrepresentation in low-paying jobs, compared with men's representation. They do partially explain the overrepresentation of women in some higher-paying positions and the declining stratification of the labor market by gender. Education is the primary driver for upward mobility for women and gender equality in the South African labor market. Note: This study follows the current South African government’s usage of the racial category “Coloured,” with the caveat that the term is not in acceptable use outside South Africa. HIGHLIGHTS Gendered occupations and pay gaps in South Africa have not been adequately studied. Black women suffer double labor segregation in South Africa, by gender and by race. Post-apartheid progress in reducing labor segregation has been faster by gender than by race. Improved education offers women a route to better-paid professional occupations Although women now access better jobs, managerial positions remain disproportionately male.

The application of the Vona du Toit Model of Creative Ability to self-employment in South African informal microenterprises

ABSTRACT INTRODUCTION: Persons with disabilities experience difficulties entering the formal South African labour market despite progressive legislation to enhance their economic participation. Consequently, self-employment becomes a work placement consideration for occupational therapy clients. However, self-employment requires certain volitional attributes, and the identification of such attributes would greatly enhance the outcome of vocational rehabilitation efforts. The aim of the study was to describe the level of creative ability of self-employed business owners in informal microenterprises METHOD: A descriptive, quantitative non-experimental research design was used. Sixteen self-employed business owners of informal microenterprises were interviewed and observed completing work tasks using the eight domains of the Activity Participation Outcome Measure (ApOM) based on the Vona du Toit Model of Creative Ability (VdTMoCA RESULTS: Participants were between 27 and 50 years of age. Their education levels ranged from no-education (6%) to tertiary education (19%) with the majority (38%) having a high school education. Based on the APOM scores, participants functioned on three levels of creative ability namely: Passive Participation, Imitative Participation and Active Participation. Most participants functioned at the Imitative patient-directed level with the highest APOM domain scores for all participants being Communication Skills, Affect and Role Performance CONCLUSION: To be successfully self-employed in an informal microenterprise, the required level of creative ability ranging from Passive to Active Participation, was identified. This provides occupational therapists with an understanding of these requirements when considering self-employment as work placement option Key words: Self-employment, informal, microenterprise, Vona du Toit Model of Creative Ability (VdTMoCA), Activity Participation Outcome Measure (APOM), work, vocational rehabilitation, placement.

Factors that affect discouragement: A South African labour market analysis

Labour markets across the world have in recent years been characterised by instability and scare employment opportunities. Despite the fact that the 21st century has carried with it massive technological change and a rise in the significance of education for better employment prospects, it has moreover brought about expanded vulnerability which has neglected to ensure employment for work-searchers. For those who want to work, the inability to find employment has been a source of enormous adversities both personally and economically. This is not unique to South Africa as the country is plagued with very high unemployment rates across all age categories and continually rising numbers of discouraged work-seekers. Although unemployment indicators have to a great extent followed international standards, the failure to incorporate those who have abstained from searching has inadvertently contributed to a lack of understanding regarding the nature of discouragement in the labour market. Keywords: Employment, discouragement; work-seekers, labour markets, South Africa, unemployment.

The Post-Apartheid Labour Market Series

Abstract The Post-Apartheid Labour Market Series (palms) is a compilation of microdata from 69 household surveys conducted in South Africa. The dataset and the code used to create the data are publicly available from DataFirst, a data repository at the University of Cape Town (www.doi.org/10.25828/gtr1-8r20). To harmonise the data required understanding the differences across the surveys, which has generated new knowledge about the South African labour market.

Post-1994 labour legislations: An overview of influence on employment relations in emerging markets

The purpose of this paper is to provide an overview of the primary labour legislation that was promulgated after the democratization of South Africa after 1994. These legislations were introduced as regulatory and corrective measures for workplace relationships in work organizations (Booysen, 2005; Vettori, 2018). The data for this paper was collected through the perusal of scientific journals, newspaper articles, published/unpublished dissertations and theses, textbooks, and other relevant informative documents. The significant and influential role, which these labour legislations played in the development of a new era of employment relations in South Africa, cannot be overstated. The South African perspective of employment relations is also presented and discussed in this paper to reveal its nature and its role-players, such as the state, trade unions, and employers’ organizations (Ehlers & Jordaan, 2016; Smith & Diedericks, 2016). The workplace relationship between employers (through their management) and employees (through their trade unions), and the effects which such an antagonistic relationship has had on the South African labour market are also addressed (Finnemore & Koekemoer, 2018). The main finding of this paper is that there has been an improvement in workplace relationships, since the implementation of the post-1994 labour legislation although such improvement has been gradual.