Granular Understanding Of Joblessness In South Africa Can Help Pinpoint Policies

PROFESSOR DEREK YU and CHRISTIE SWANEPOEL

THE longest upswing in the South African economy in the last three decades was when it grew at an average rate of 4% per annum between 1998 and 2008. The 2008 global recession ended this 11-year growth period. The country hasn’t seen sustained periods of growth since.

Throughout, the country has suffered from persistently high levels and rates of unemployment. In the final quarter of 2020 unemployment number rose to 7.23 million from 6.53 million and unemployment rate increased from 30.8% to an alarming 32.5%. This meant that one out of three jobseekers was unemployed.

Most economists agree this is due to a mismatch between the type of skills jobseekers bring to the labour market and skills demanded by employers. Hence it’s called structural.

What’s less clear is a granular understanding of who is out of work, when, and for what periods of time.