Occasional Paper

Growth, Employment and Economic Policy in South Africa: A Critical Review

“The paper starts with an overview of South Africa’s job crisis. It then moves on to consider whether the country’s economic policies are conducive to labour-demanding growth. In so doing, it examines trade policies, labour market policies and macroeconomic strategies, considering their consistency, and whether they are conducive to sustainable job creation. Part 2 shows that increased exposure to international competition is undermining the labour intensive manufacturing sector. Part 3 looks critically at wage-setting institutions. The final section discusses tensions and areas of conflict between the government’s macroeconomic strategy and its labour market policies.”