Labour markets and social policy

Focus areas

	Evidence-based employment scenarios		Employment monitoring
	Macro-economy, economic bias & employment		Employment-oriented industry studies
	The informal economy		Government employment creation programmes
	Labour markets and social policy		Migration
	Regional dynamics		Social dialogue
	Employment policy network		Food Security, Agriculture and Rural Development

There is some debate concerning appropriate labour policies in a context of high unemployment. This research area asks whether labour supply and the labour market are functional to South Africa's development objectives?

In SA, about 64% of workers earn less than R 2,500 per month. A large proportion of these people work in the formal sector. Between 2000 and 2004, more than 50% shifted their status – moving between formal, informal and unemployed states. A large proportion of these people have limited access to regulatory protection, training, business support or HIV/AIDS services. So, formal and informal workers are often thought about separately when, in fact, it seems that the boundaries are much more blurred. The expansion of low wage, precarious work has implications for the design of labour market policy and social protection.

Currently, this includes the following project areas

• Review of ‘working poor', namely, trends in work and earnings of people earning less than R40,000 annually.
• Review of methodologies for measuring the social wage
• The role of the public service in employment creation

We will draw together the work of the HSRC and other agencies for the purpose of the scenario building process. The key question is – how do labour supply conditions affect employment and unemployment?  What labour supply conditions are needed for a high labour-absorbing path? More specifically, we consider:

• Baseline expectations for numerical labour supply based on demographic projections, (including the potential impact of HIV/AIDS, education output, and skills composition)
• Active labour market policies
• Immigration and remittances
• Social wage and social protection

This area of work draws together the best available evidence, based on international and local studies on appropriate labour market structures, and the appropriate set of policy instruments.

• Trends in wages – how is the ratio between high and low earners changing over time?
• Review of labour market dynamics (Sida)
• Evaluation of Learnership Academy model For Services SETA
• International workshop: Labour Market Transitions
• Forecasting skills demand and supply, and skills gaps
• Sector skills demand and supply: support to the education sector (ETDP SETA), financial services and management (FASSET-SETA), other services falling under the Services SETA, information and communication technologies (Department of Communications), mining, small-scale mining and jewellery (Mining Qualifications Authority); chemicals industry (the DTI and Chieta); impact assessment of the Services SETA programmes and learnership academy.
• Remuneration and employment experiences of graduates
• Review of Eastern Cape labour market
• Impact analysis of HIV/AIDS on Industries and the Workforce
• Review of the state of knowledge on HIV/AIDS in the labour market
• Determinants of demand and supply of educators, with a focus on workplace stress
• Public/private partnership in respect of employment services (DoL)

• Meth, C. (2008) Social Income in South Africa, An Economy Marred by High Unemployment and Extreme Inequality
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• Altman, M., Boyce, G. (2008) Policy Options to Leverage the System of Social Grants for Improved Access to Economic Opportunity
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• Altman, M., Gostner, K., Lee, D., Tregenna, F., van der Heijden, T. & Onyango, D. (2005) Review of employment & remuneration trends for selected sectors in the SA economy (Prepared for Office of the Presidency)
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• Altman, M. (2007) Youth labour market challenges in South Africa
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• Altman, M. (2005) A review of labour markets in South Africa: references (Commissioned by SIDA)
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• Altman, M (2005) A Review of Labour Markets in South Africa: Wage Trends and Dynamics
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• Altman, M. (2005) Research gaps - labour market function and policy in South Africa. (Final report to SIDA).
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• Altman, M, Lee, D. (2004) Meeting Equity Targets: Are There Enough Graduates?
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• Altman, M (2006) Low wage work in South Africa
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• Altman, M (1993) Unpaid or Undervalued Labour? Some Labour Market Considerations
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• Benjamin, P. (2005) A review of labour markets in South Africa: labour market regulation: international and South African perspectives. (Commissioned by SIDA).
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• Du Toit, R. (2005) A review of labour markets in South Africa: career guidance and employment services. (Commissioned by SIDA).
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• Edgren, G. (2005) A review of labour markets in South Africa: how different is the South African labour market?: International perspectives and parallels. (Commissioned by SIDA).
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• Moleke, P (2005) A Review of Labour Markets in South Africa: Education and Training
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• Pillay, P. P (2005) Access to essential services – education, health, water and sanitation: The global context
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• Pillay, P. P (2005) Access to essential services: Education and health: Synthesis paper
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• Smith, C (2006) International Experience with Worker-side and Employer-side Wage and Employment Subsidies, and Job Search Assistance Programmes: Implications for South Africa
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• Valodia, I. , Lebani, L. and Skinner, C. (2005) A review of labour markets in South Africa: Low-waged and informal employment in South Africa. (Commissioned by SIDA).
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• van Seventer, D. (2006) Employment and skills in South African exports
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• Vass, J. (2005) A Review of labour markets in South Africa: the impact of HIV/AIDS on the labour market. (Commissioned by SIDA).
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• Woolard, C and Woolard, I, (2006) Earnings inequality in South Africa 1995–2003
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