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SETP No. 14 The Economic Value of Incremental Employment in the ...

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Table 3-1<br />

Construction <strong>in</strong>dustry contribution to GDP<br />

1990 values<br />

R millions % <strong>of</strong> total GDP<br />

1980 9,511 4.3%<br />

1981 10,038 4.3%<br />

1982 9,642 4.2%<br />

1983 9,119 4.0%<br />

1984 9,344 3.9%<br />

1985 8,875 3.7%<br />

1986 8,157 3.4%<br />

1987 7,618 3.2%<br />

1988 7,864 3.1%<br />

1989 8,527 3.3%<br />

1990 8,606 3.4%<br />

1991 8,203 3.2%<br />

1992 7,693 3.1%<br />

1993 7,168 2.9%<br />

1994 7,251 2.8%<br />

1995 7,376 2.8%<br />

1996 7,506 2.8%<br />

1997 7,609 2.7%<br />

1998 7,625 2.7%<br />

Source: SA Reserve Bank Quarterly Bullet<strong>in</strong>s<br />

Construction <strong>Employment</strong><br />

3.5 <strong>The</strong> trend <strong>in</strong> contribution to GDP <strong>of</strong> <strong>the</strong> construction <strong>in</strong>dustry is reflected <strong>in</strong> <strong>the</strong><br />

trend <strong>of</strong> both total employment and real wages <strong>in</strong> <strong>the</strong> construction <strong>in</strong>dustry. Total<br />

employment <strong>in</strong> <strong>the</strong> <strong>in</strong>dustry peaked at 427,000 <strong>in</strong> 1981 (see Table 3.1 and Figure<br />

3.1). S<strong>in</strong>ce that time employment <strong>in</strong> <strong>the</strong> construction <strong>in</strong>dustry has decl<strong>in</strong>ed<br />

consistently with an accelerated decl<strong>in</strong>e after 1990.<br />

3.6 It is evident from both <strong>the</strong> diagram above and <strong>the</strong> table below that greatest<br />

reduction <strong>in</strong> <strong>the</strong> number <strong>of</strong> jobs has been to <strong>the</strong> coloured communities with <strong>the</strong><br />

proportion <strong>of</strong> total employment fall<strong>in</strong>g from over 15% <strong>in</strong> <strong>the</strong> early 1980s to just<br />

over 11% by <strong>the</strong> late 1990s.<br />

3.7 It is useful to read Table 3.2 <strong>in</strong> conjunction with Figure 3.3. Figure 3.3 (which is<br />

discussed more fully below) shows <strong>the</strong> relative performance <strong>of</strong> construction jobs<br />

to jobs <strong>in</strong> <strong>the</strong> rest <strong>of</strong> <strong>the</strong> country. It is possible to view <strong>the</strong> changes <strong>in</strong> <strong>the</strong><br />

composition <strong>of</strong> employment as <strong>the</strong> result <strong>of</strong> a large scale search for cheaper<br />

labour. This view can be substantiated by not<strong>in</strong>g how, <strong>in</strong> <strong>the</strong> period before 1992,<br />

<strong>the</strong> <strong>in</strong>creased black and Asian share <strong>of</strong> jobs <strong>in</strong> construction. Follow<strong>in</strong>g 1992, and<br />

<strong>the</strong> general job shedd<strong>in</strong>g <strong>in</strong> South Africa, <strong>the</strong> share <strong>of</strong> blacks <strong>in</strong> <strong>the</strong> construction<br />

<strong>in</strong>dustry has decl<strong>in</strong>e marg<strong>in</strong>ally.<br />

5

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