Articles for August 2023
Why the township economy matters
Nearly half the working-age population and nearly two-thirds of the unemployed live in areas designated as townships under apartheid spatial laws. Originally developed as “labour dormitories”, they have been challenging to develop as more vibrant local economies and residential areas. What can the government – and the private sector – do to stimulate growth, entrepreneurship, and employment in these peri-urban areas?
How to tackle low labour utilisation in South Africa
South Africa’s low labour utilisation rate is a stark outlier by international standards, made even more unusual because achieving job creation and high employment rates appear to be well understood in other economies. What policy remedies can South Africa learn from other countries? Increasing economic competition and removing impediments to job creation are clear lessons. So too is the focus and effectiveness of labour-market institutions that lower the cost of job search. Other gains can be found in lowering costs to job creation and labour supply, easing school-to-job transitions, and making job search more effective.