Distress in the Time of Covid: Labour Market Dynamics in South Africa
Prof. Haroon Bhorat, DPRU Director, presented on labour market research and the impact on NEDLAC labour law and policy deliverables, on the 16 March 2023, at the annual Global Business Solutions Employment Conference in Johannesburg.
His session, titled “Distress in the Time of Covid: Labour Market Dynamics in South Africa”, focused on the data and statistics that will influence the outcome of amendments to the various labour laws under review. He provided some early empirical impressions of the labour market effects of Covid-19, and an early impact assessment of the Temporary Employee/Employer Relief Support (TERS) policy.
He also discussed ongoing research into a ‘country in search of jobs’ – in terms of unemployment and the informal economy, and the patterns of economic growth (services intensive, public sector biased and skills-intensive) – that have all served to lead to an economy that is poor in creating a sufficient number of jobs relative to the growth in the labour force.
Prof Bhorat concluded with an outlook for employment: A 3-5year view where short-term recovery in employment depends on growth reforms being adopted. These include reduction of red tape for SMEs, continuing energy and telecommunication reforms, adoption of the Just Transition, reduction of the public sector wage bill, and fiscal consolidation path adherence. He also warned of the external factors that need to be considered, in light of global inflation, the pandemic, and the war in Europe.
