1. South African Labour Market Update Loane Sharp 2012

2. Unemployment stats One of post-apartheids greatest disappointments is the economys failure to create jobs – 13% unemployment in 1994 to 37% currently Official labour force size: 17.4 million of which 13 million formally employed 4.4 million South Africans are currently unemployed 2.0 million permanently discouraged about their prospects of finding work 2.1 million people underemployed (Stats SA) 2.7 million (61%) of those officially unemployed have been out of work for more than a year Nearly half (46%) of the economically active population is idle, with a staggering proportion (74%) of these under the age of 24 By any measure, unemployment is easily South Africas most pressing socioeconomic problem Who are the unemployed? Youth, black African, never worked before

3. Economic activity and employment Data sources: South African Reserve Bank, Statistics SA.

4. Problems Disaffected youth Increased levels of crime Political instability and the rise of radicalism Xenophobia HIV/Aids, alcohol and drug abuse Significant drain on the countrys financial resources (social grants, NHI, etc) Causes Restrictive labour legislation – 138th out of 142 by World Economic Forum Wage inflation decoupled from labour productivity Average wage settlements 2011 – 9.1% (2010 – 8.2%) Militant trade union activism Working days lost due to strike action rose from 2.9m days in 2009 to 14.6m day in 2010 Education and training not delivering Regional conflicts resulting in unchecked immigration

5. Adcorp Employment Index Data source: Adcorp Analytics.

6. Typical and atypical employment Typical employment Data source: Adcorp Analytics. Atypical employment

7. Skills shortages Skills shortage by occupation Data source: Adcorp Analytics. Skilled workers remuneration Occupation Skills shortage (000s)* Manager216.2 Professional178.4 Technician432.1 Clerk86.6 Sales and service worker104.3 Skilled agriculture3.1 Craft and related trade65.5 Plant and machine operator72.0 Elementary worker-967.6 Domestic worker-247.4 Total-56.8

8. Labour vs. capital Usage of labour and capital Data sources: South African Reserve Bank, Statistics SA.

9. Labour vs. capital productivity Labour productivity Data sources: South African Reserve Bank, Statistics SA. Capital productivity

10. Migrating to the informal sector? Number of people running their own small businesses Data source: Statistics SA. Number of people trying to start their own businesses

11. Affirmative action Number of high-income Blacks Data source: Statistics SA. Average Black income

12. Declining union membership Unionization rate Data source: Statistics SA. Unionization rate by sector

13. Strikes and intimidation Data source: Statistics SA. Strike participation rate Intimidation-related absenteeism

14. The trouble with Statistics SAs estimates Variable Statistics SA estimate (QLFS Q4 2011) Actual/verified figureSource for actual/verified figure Undercount (percent) No. of taxpayers (individuals and businesses)7 263 0927 998 794SA Revenue Service Tax Statistics 20119.2% No. of business owners1 969 7675 579 767The Business Trust (2011)64.7% Net new business taxpayers354 694 –SARS Tax Amnesty 2003-201017.1% Net new individual taxpayers2 512 397 –SARS Tax Amnesty 2003-201042.2% No. of businesses registered for VAT (active businesses only)574 928664 267SA Revenue Service Tax Statistics 201113.4% Percent of employees reporting PAYE/SITE deductions by their employers57.0%70.0%SA Revenue Service Tax Statistics 201113.0% Percent of employees reporting UIF deductions by their employers58.0%77.4%SA Revenue Service Tax Statistics 201119.4% No. of individual UIF contributors6 602 1977 919 290Unemployment Insurance Fund Annual Report 201116.6% No. of UIF recipients80 577183 040Unemployment Insurance Fund Annual Report 201156.0% No. of medical aid or health insurance principal members3 712 1683 612 062Council for Medical Schemes Annual Report 2011-2.8% Compensation of employees (R millions)1 066 3701 317 655Statistics SA GDP Q4 201119.1% No. reporting did not know/specify or refused to disclose income1 045 730 –Statistics SA QLFS Q4 201123.7% No. receiving wage increments in line with Bargaining Council agreements1 035 3201 765 230National Association of Bargaining Councils (2011)41.3% No. receiving social grants (old age, veteran, child support, etc.)11 500 13215 028 969SA Social Security Agency Statistical Report No. 41 (p. 8)23.5% No. underemployed (vs. no. willing to work additional hours/do extra work)524 9982 051 894Statistics SA QLFS Q4 201174.4% Average undercount (percent) 28.7% Data sources: Statistics SA Quarterly Labour Force Survey (2001-2011). Other sources as indicated.