The (Urban) Poor and Employment Creation

The removal of sanctions and South Africa’s reincorporation into the world economy should pave the way for a major structural recovery of the country’s economy. Because of an inherent bias in favour of production growth, employment growth will lag behind, and this will dictate the introduction of supplementary measures to accelerate employment growth. Complicating the challenge to increase rates of employment growth is the necessity to create employment for the poor, who are at the bottom of the unemployment pyramid: those who are the products of structural unemployment, those who operate microenterprises in the townships, and women in households which have no wage-earnings or who are self-employed breadwinners. The article outlines a number of conventional employment creation strategies as well as unconventional additional measures designed at increasing the labour absorption capacity of the economy so that more of those at the bottom of the unemployment pyramid can be absorbed. Ref.

Title:The (Urban) Poor and Employment Creation
Author:Levin, Michiel
Year:1995
Periodical:Africa Insight
Volume:25
Issue:3
Pages:172-179
Language:English
Geographic term:South Africa
Abstract:The removal of sanctions and South Africa’s reincorporation into the world economy should pave the way for a major structural recovery of the country’s economy. Because of an inherent bias in favour of production growth, employment growth will lag behind, and this will dictate the introduction of supplementary measures to accelerate employment growth. Complicating the challenge to increase rates of employment growth is the necessity to create employment for the poor, who are at the bottom of the unemployment pyramid: those who are the products of structural unemployment, those who operate microenterprises in the townships, and women in households which have no wage-earnings or who are self-employed breadwinners. The article outlines a number of conventional employment creation strategies as well as unconventional additional measures designed at increasing the labour absorption capacity of the economy so that more of those at the bottom of the unemployment pyramid can be absorbed. Ref.