South Africa’s labour market transformed since 1994, with an emphasis on strategies that eliminate labour inequalities of the past and improve general working conditions for all South Africans. South Africa has one of the fastest growing tourism sectors in the world and Cape Town is ranked as the No. During the same period, both the unemployment rate (27,1%) and absorption rate (43,2%) increased by 2,4 percentage points and 0,5 of a percentage point, respectively. Designated employers include those who employ more than 50 people, or have an annual turnover of a certain amount. Talking about ‘labour market inflexibility’ as a single concept as if there is one homogenous, national labour market in South Africa is misguided. By subscribing you will receive continuous newsworthy information. Not everyone of working age participates in the work force. The majority of disputes referred to the CCMA relate to individual dismissal and are settled at the conciliation stage. The government in its aims to redistribute wealth more equitably in South Africa has pushed for an increase in skilled labour. There are of course also people who have given up looking for work. Not everyone in the work force is necessarily working and the work force is composed of both the employed unemployed. South Africa is an upper-middle-income economy, one of only eight such countries in Africa. ASSESSING CURRENT AND EMERGING... Mara Experience Store – an active product of pledges made at... Business links emerge stronger from BRICS Business Forum, President Cyril Ramaphosa to lead third South Africa Investment Conference, South Africa’s hospitality sector ‘poised for growth’. Occupational health and workplace safety is also closely regulated. The economy of South Africa is the second largest in Africa. Labour disputes are dealt with on several levels: either through bargaining councils, the Commission for Conciliation, Mediation and Arbitration (CCMA), the Labour Court or by private arbitration. CCMA arbitration awards that are contested or disputes that cannot be resolved by conciliation may be taken to the Labour Court in certain cases. Unemployment in South Africa exhibits certain demographic characteristics, in particular, unemployment is concentrated amongst black Africans, the less educated, the youth, women and those without prior work experience. Labour law has traditionally provided a set of minimum conditions (minimum floor of rights) for employees. Even within industries minimum wages vary based on the type of job that one has. Can I get my late uncle's house, which his girlfriend had been living in with him, transferred to me, his niece. The most notable pieces of legislation which aim to strengthen the labour market include: Legislation is supported by codes of good practice, issued by the Department of Labour. According to a recent report, Education and Labour Market read more » … Background: The human resources for health (HRH) crisis and dearth of research on the health labour market in South Africa informed the WiSDOM (Wits longitudinal Study to Determine the Operation of the labour Market among its health professional graduates) cohort study. South Africa labour market: Youth Q1: 2008 to Q1: 2014. Over 63% of the total working-age population participates in the labour market, although the labour market participation rate ranges from 46% in Northern Africa to 68% in sub-Saharan Africa. The Act seeks to develop the skills of the South African workforce, increase investment in education and training in the labor market, encourage employers to make provide opportunities for learning for their employees, and to redress inequality in employment prospects. Employment in the informal economy KILM 9. According to Statistics SA, South Africa has a workforce of more than 18-million people (this includes those either working or available to work and actively seeking work). The study aims to highlight the ... investigates the impact of demographic, human capital and job characteristics on job tenure. A designated employer is required to implement affirmative action measures for designated groups in order to achieve employment equity. The challenges facing South Africa's labour market in 2016 have been evident in a number of recent judgements and in a variety of ongoing processes of engagement between social partners. As a manufacturing hub, it is the most industrialized, technologically advanced, and diversified economy on the African continent. Of these, around 13,5-million are employed: According to StatsSA’s figures for the last quarter 2012, about 4,5-million people were looking for work, of which 3,1-million (or 68%) have been looking for work for a year or longer. The manufacturing, utilities and construction industries have all had a net decrease in jobs between 2010 and 2012. As a result, by the end of the 2008 financial year about 800,000 jobs were lost in the country. However, the market is gradually recovering and this is expected to help employment figures. You can support us via Givengain, Snapscan, EFT, PayPal or PayFast. Labor productivity is another important gauge of the labor market and broader economic health, measuring the output produced per hour of labor. Figure 2.1 — Percentage of Global employers having difficulty filling Jobs Source: Manpower 2016/17 talent shortage survey This means globally, employers are facing the most acute talent shortage since the recessio… The labour market is characterised by stability and lack of fluidity and diversity of rates for similar jobs. Growing Up Without a Father Foundation addresses resolutions for a ‘fatherless generation’ on International Men’s Day, Deputy President Cyril Ramaphosa arrives in Davos, Africa must ensure it is an integral partner on global agenda, South African app connects job seekers with employment opportunities. Clinical Associates competition. In 2014, individuals with less than a matric qualification accounted for 59,2% of the unemployed, down from 64,0% in 2008. South Africa: Labor Market Dynamics and Inequality. Labour force participation rate KILM 2. 21 Belmont RoadRondebosch Statistics South Africa South Africa-24 P0211.4.2. The Act is intended to redress the employment disadvantages of black people, women and those with disabilities (“designated groups”). In South Africa, generational changes have largely been impacted by important political changes that affected the choices available to Generation X’ers and Millennials in terms of their educational and labour market participations. Drivers and Admin Workers: R 565.40 per week. The Portfolio Committee on Labour received an overview of the South African labour market (unemployment rates, jobs per sector and 2015 quarterly employment trends) by the Financial Fiscal Commission. 1. However, the market is gradually recovering and this is expected to help employment figures. The employed are members of the workforce who currently hold jobs. We firstly produce a labour market profile of non-Irish immigrants who arrived in Ireland in the ten years to 2003. Women earn less than men within each of the same broad categories of employment. The global recession of 2008 hit the local labour market hard, and more than a million jobs were lost by 2010. Part-time workers KILM 7. Competitive labour markets The demand for labour – marginal productivity. If the definition of unemployment were expanded to include these discouraged workers the rate of unemployment would be 33.8%. Labor Force Participation Rate in South Africa averaged 57.16 percent from 2001 until 2020, reaching an all time high of 60.80 percent in the first quarter of 2001 and a record low of 47.30 percent in the second quarter of 2020. The overall number of South Africans employed in 2012 was 13,447,000 people. South Africa’s Gini coefficient has always served as the starkest indicator of the country’s unequal distribution of income.2 For a long time, South Africa’s Gini was the highest recorded in the world. Unemployment is higher amongst women – 37.5% of females are … These wages vary greatly and are determined by through the agreement of organized labour and organized business in the NBC’s. Other legislative measures introduced by the government to improve the quality and strength of the South African labor market are: • Labour Relations Act of 1995 The South African workforce is composed of all the people who are either working or available to work and are actively seeking work. One of the key issues facing the South African labour market is as an excess of unskilled labour. Labour market regulation can be divided into a number of sub-categories: a) Minimum conditions of employment . Would you like to use this article in your publication or on your website? The Labour Market Characteristics and Labour Market Impacts of Immigrants in Ireland The purpose of this paper is two-fold. The number of people employed in each sector of the economy varies greatly. The Act also created the Sector Education and Training Authorities. Authorized for distribution by Laura Papi July 2016 . Table 1 presents a comparison of South Africa’s Gini coefficient and income shares to countries with similar income levels3. According to this definition, the overall unemployment rate of South Africa in 2012 was 25.2%. Labour market dynamics. The FFC noted there was a close association between the economic growth rate and the unemployment rate. The wholesale and retail trade is the biggest employer of people in South Africa, employing 22.8% of the labour force, followed by community, social and personal services (CSP), which employs 21.5% of the workforce. The introduction of a national minimum wage remains high on the policy agenda, although its … The South African labour market is predominantly a formal labour market: in 2016Q3, the formal sector accounted for nearly three-quarters (74.5 percent) of total employment. With an unemployment rate of around 25%, South Africa’s biggest challenge is the creation of jobs. The Commission for Conciliation, Mediation and Arbitration (CCMA) was established in 1996, to resolve labour disputes. Key Indicators of the Labour Market (KILM), Ninth edition KILM 1. Employment by sector KILM 5. One of the practical things that SETAs do is establish learnerships to help grow the skills base in their sectors. Labour market regulation: International and South African perspectives . What can we do to stop the late owner's sister from kicking my mom out of the RDP house she has been living in for over 20 years? How can I purchase a vacant plot that RDP houses are being built on? To be updated on Brand South Africa news and events join our media list. There is a very high rate of youth unemployment and over 62.4% of 15-24 year olds in the workforce are unemployed. Status in employment KILM 4. • Employment Equity Act of 1998. Unemployment is lowest amongst the 45-54 (18.4%) and 55-65 (11.5%) ages groups. The economy of South Africa grew at an average rate of 4.6% between the years of 2003 and 2008 but has been severely affected by the global financial crisis of 2008. The LRA was one of the first major statutes passed by the new government that assumed office in 1994. Can SASSA reclaim grant money now that I earn more than the qualifying amount? Unemployment On April 10, the World Bank released the 11th edition of its South Africa Economic Update, with a special section of the report focusing on jobs and inequality in South Africa. exposed dodgy Lottery deals involving millions of rands. Common elements of this mechanism are supply, demand and price. A look at the South African Labour Market in 2016. +27 (0) 21 788 9163 We seldom work in our office during the Covid-19 pandemic and this phone is not usually answered. See: Using SAinfo material. Minimum wages for all industries can be obtained by contacting the Ministry of Labour. South Africa’s labor legis-lation comprises two main statutes: the Labour Relations Act (LRA) and the Basic Conditions of Employment Act (BCEA). South Africa also has a number of employers’ organisations. Economic growth has declined from a high of 2,5% in 2013 to 0,8% in 2018. Abstract. Block, Tannery Park 3 . Of these, around 13,5-million are employed: 1. Hours of work KILM 8. Chris Todd, Head Employment & Benefits Practice at Bowmans Cape Town. According to Statistics South Africa 39.2% of African people and 26.7% of Coloured people are unemployed whereas only 7.4% of Whites and 10.5% of Asians are unemployed. Labour market dynamics in South Africa, 2014 Labour statistics The South Africa I know , the home I understand F… These three federations form the labour constituency at the National Economic Development and Labour Council (Nedlac), together with members representing the state and business interests. Since its inception in 1996, the CCMA has dealt with thousands of cases. According to Statistics SA, South Africa has a workforce of more than 18-million people (this includes those either working or available to work and actively seeking work). The aim is to determine whether the current literature concerning the South African labour market indicates whether policies that address the demand for labour would result in a decrease in the unemployment rate. Downloadable! In 2014, the proportion of youth that live in households in which no one is employed is highest in Eastern Cape (41,1%) and Limpopo (37,6%) and lowest in Western Cape (11,7%) and Gauteng (14,9%). The global recession of 2008 hit the local labour market hard, and more than a million jobs were lost by 2010. Argus cyclers on Victoria Road, Hout Bay, Previous:  Trade unions play an important role in South Africa’s labour relations. The demand for factors of production is derived from the demand for the products these factors make. evident in the case of labor market legislation. ... there are a few outliers—such as Angola, South Africa… Source: Author’s calculations from the 2015 Labour Market Dynamics in South Africa. Categories of labour market regulation. Those most affected by job losses were the youth and those with lower levels of education. The National Skills Authority (NSA) was created by the Act to advise the Minster of Labour on the creation and implementation of skills policy. Register to receive our latest news and updates. These authorities deal with the creation and implementation of policy at the sector level and also include organized business and labour. Employment by occupation KILM 6. The fourth industrial revolution in Africa: potential for inclusive growth? The labour market ensures the balance between the needs for labour resources of the national economy and the possibilities for their coverage. Some sectors have fared better than others in terms of growth in the last few years. The government has sought to “up-skill” the labour force by introducing the Skills Development Act (SDA) in 1998 (amended in 2003 and 2006). In 2012 unskilled labour accounted for a still high 28.9% of all labour. Organized business and organized labour both form part of the NSA. This is a study of the labour market in South Africa. Under the Labour Relations Act, National Bargaining Councils were created to allow for a collective bargaining of the minimum wages in different industries. the Basic Conditions of Employment Act (BCEA); Formal sector (non agricultural): 9,6-million, Informal sector (non agricultural): 2,2-million. In 2018, approximately 94,0% of employed persons remained employed between quarter 3 and quarter 4 of 2018, while those who remained … This is the highest percentage since 2007. Unemployment is highest amongst those who left school without a Grade 12 and lowest amongst those with a Diploma or a Degree. Descriptive statistics on job mobility in South Africa Figure 1 shows the proportion of workers by the length of … In South Africa the overall percentage of the working age population that participates in the work force is about 62%. Wim Naude Around 170 million Africans will enter the continent’s labour market between 2010 and 2020. There are three major union federations in SA, whose affiliates represent a broad spectrum of industry: The Congress of South African Trade Unions (Cosatu), the Federation of Trade Unions of South Africa (Fedusa) and the National Council of Trade Unions (Nactu). See copyright notice on articles for terms. Table 1 shows the evolution of the African labor market over the last 16 years and the predictions for 2017. Employment-to-population ratio KILM 3. A rise in the price of labour offered by a particular employer does not cause employees of other firms receiving fewer wages to leave their jobs and go to high wage employer. This is illustrated by the current minimum wages in the Taxi industry, where what is considered an acceptable base wage differs for drivers and administrative workers, and taxi rank marshals. The Act relies on a coalition of government, organized labour and organized business to fulfill its aims. 1 travel destination in the world by TripAdvisor. GroundUp is being sued after we Labor Force Participation Rate in South Africa increased to 54.20 percent in the third quarter of 2020 from 47.30 percent in the second quarter of 2020. Cape Town 7700, Creative Commons Attribution-NoDerivatives 4.0 International License, Write a letter in response to this article, SIU and Hawks swoop on National Lotteries Commission, Even my cat can’t fight the huge rats, says Langa resident, Minimum wage should go up 4.5%, says Commission, What this municipality hadn’t done in years, Gift of the Givers did in just three days, Covid-19 protocols are observed inside SASSA offices, but not in the snaking queues of people waiting outside. South Africa has one of the highest rates of unemployment in the world. 2020, A YEAR TO REMEMBER, OR FORGET? info@groundup.org.za, Suite 08SB, 1st floorSouth  But … Just over 61% of the job seekers did not have matric. Manpower Group’s eleventh annual talent shortage survey shows that 40% of employers globally experience difficulty filling positions, with a 2 % increase from 2015 to 2016. For the former, absence of perfect competition in labour markets, e.g. The South African labour market is analysed by reporting the results of previous studies that address the unemployment problem. The unemployed are members of the work force who are actively seeking work but unable to find it. “It is also important to note that for a large part of the African population, unemployment is not an option. Unemployment is higher amongst women – 37.5% of females are unemployed, whilst 30.6% of males are unemployed. • Basic Conditions of Employment Act of 1997 3. Business Unity South Africa (BUSA) represents the collective interests of business in South Africa in the context of the Nedlac forum. First, to a large extent the labour market functions as a multitude of smaller, area-based or local labour markets. Next:  Workforce participation should not be confused with employment. According to Statistics South Africa 39.2% of African people and 26.7% of Coloured people are unemployed whereas only 7.4% of Whites and 10.5% of Asians are unemployed. For example, if mobile phones are in greater demand, then the demand for workers in … With an unemployment rate of around 25%, South Africa’s biggest challenge is the creation of jobs. Please help fund our defence. Overall, between 2000-2007, the working age population in Africa grew at 2.6% annually creating 96 million working-age people along the way. Prepared by Rahul Anand, Siddharth Kothari, and Naresh Kumar . It features a self-regulation mechanism, which in principle is the same on all markets. The Employment Equity Act requires designated employers to compile and implement an Employment Equity Plan aimed at promoting equal opportunities and affirmative action, while eliminating unfair discrimination. 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