Review of Concepts and Approaches in Labour Market Analysis Pundy Pillay

Outline  Labour Supply  Labour Demand  Defining the Labour Force  Employment  Unemployment  Approaches to LM Analysis  BankSeta Challenges

Labour Supply  Defining the LS  Factors influencing LS 1. Population Growth 2. Level of Development 3. Education & Skills 4. Social Policy, esp. rel. to women

Labour Demand  Definition  Factors influencing LD 1. Economic Growth 2. Economic Policy –e.g. export- driven; industrialization 3. Product Market

Labour Demand (contd.) 4.Social Policy – e.g. teachers, doctors 5. Technology 6. Labour Costs 7. Skills

Labour Supply & Demand Patterns in South Africa  Labour Supply 1. Population 2. Age composition of the labour force 3. Education levels and skill composition

Contd….  Labour Demand 1. Economic Growth 2. Economic Policy 3. Education & Skills 4. Technology, Occupation & Skills 5. Unions & Minimum Wages

The Labour Force  Defining the Labour Force/e.a.p.  Labour Force Participation Rate  Factors influencing the LFPR

Employment  Definition  Trends  Formal vs informal  Education & Employment

Unemployment  Definition  Types of unemployment 1. Frictional 2. Structural 3. Seasonal 4. Cyclical 5. Voluntary vs Involuntary  Measuring Unemployment

Approaches to LM Analysis  Labour Supply + Labour Demand  Skills Development and LM Analysis  Macro-factors 1. Economic Growth 2. Economic Policy 3. Social Policy 4. Technology 5. Education & Skills

BankSeta Challenges General Challenges 1. Data 2. Understanding both sides of the LM – supply & demand 3. General vs Specific Skills 4. Skills and Occupation 5. Forecasting skills – possibilities and limitations

Contd. – Specific Challenges  Sectoral data  Changes in the product market & skills  Impact of technology  Labour costs  Labour Productivity  Growth and the demand for labour

Summary – key determinants of employment & unemployment  Education and Skills  Technology  Location/region  Gender  Race  Socio-economic status