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

More documents

Recommendations

Info

Figure 3-3 Index of employment: Construction and total non-agricultural employment 110 105 100 Index 1990=100 95 90 85 Construction Total non agricultural 80 75 70 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Source: SA Reserve Bank Quarterly Bulletin 3.8 The loss of jobs in the construction industry stands in contrast to the rest of the economy. Figure 3.3 illustrates an index of employment of total non-agricultural employment and employment in construction for the years 1980 to 1997. The index base year is 1990. In the economy as a whole there have been net job losses since 1990. The trend in the economy over the past twenty years indicates a general growth in jobs over the 1980s with a sustained loss in jobs between 1990 and 1997. While this is a bleak picture in itself, the construction industry has experienced jobs losses far greater than the rest of the economy, on the one hand, and the job losses have been happening since the early 1980s, on the other. Wage trends Construction wages 3.9 We see above that construction has a falling contribution to GDP and a falling contribution to total job creation. The changes in real wages reflect this trend although the differences are not as stark. Figures 3.4 and 3.5 illustrate the racial differences in wages and the changes in these real wages since 1980 for the construction and manufacturing industries respectively. (Real wages are estimated by adjusting nominal wages by the South Africa consumer price index). 3.10 For whites real wages have been falling in both construction and manufacturing since the mid-1980s although the fall has been greater in the construction industry. Real wages for coloureds are higher in manufacturing but lower in 7
construction. Real wages are higher for Asians in both sectors. Real wages paid to blacks have maintained their value in construction but, in contrast, have increased in manufacturing. 3.11 It is beyond the scope of this report to thoroughly analyse the causes of the relative changes between black and white wages in the construction industry. We suspect that the causes will include falling demand in the construction industry (as evidenced by a falling contribution to GDP), the highly competitive nature of construction, the need to reduce costs, and the increased ‘informalisation’ of the industry. Figure 3-4 Average real monthly salaries in Construction 12,000 10,000 Rands per month, 1995 values 8,000 6,000 4,000 White Coloured Asian Black 2,000 - Jan-80 Jan-82 Jan-84 Jan-86 Jan-88 Jan-90 Jan-92 Jan-94 Jan-96 Source: Stats SA statistical releases (TSE database) Figure 3-5 Average real monthly salaries in Manufacturing 9000 8000 7000 Rands per month, 1995 values 6000 5000 4000 3000 White Coloured Asian Black 2000 1000 0 Jan- 80 Jan- 81 Jan- 82 Jan- 83 Jan- 84 Jan- 85 Jan- 86 Jan- 87 Jan- 88 Jan- 89 Jan- 90 Jan- 91 Jan- 92 Jan- 93 Jan- 94 Jan- Jan- Jan- 95 96 97 Source: Stats SA statistical releases (TSE database) 8
Page 1 and 2: SETP No. 14 The Economic Value of I
Page 3 and 4: Copyright © International Labour O
Page 6 and 7: Table of Contents PREFACE .........
Page 8: List of Abbreviations CBPWP GDP ILO
Page 12 and 13: Structure of the Report This report
Page 14: 8. It is shown in the forth area of
Page 17 and 18: 1.8 In order to achieve this object
Page 19 and 20: 3 A Labour Focussed Profile of the
Page 21: Figure 3-2 Employment in the Constr
Page 25 and 26: Table 3-3 Construction industry Ave
Page 27 and 28: Figure 3-7 1997 October Household S
Page 29 and 30: 3.23 There are four possible reason
Page 31 and 32: Figure 3-8 Number of persons by inc
Page 33 and 34: 3.35 Estimates of average provincia
Page 35 and 36: 3.41 Table 3.11 reports on the prov
Page 37 and 38: 3.45 An attempt was made to verify
Page 39 and 40: Summary 3.50 The construction indus
Page 41 and 42: A profile of income and expenditure
Page 43 and 44: Figure 4-1 Percentage of expenditur
Page 45 and 46: Table 4-3 Expenditure increases for
Page 47 and 48: Table 4-5 Expenditure increases for
Page 49 and 50: 4.18 Here we find that grain mill p
Page 51 and 52: • Labour and capital are in unlim
Page 53 and 54: Figure 5-1 Schematics of the Mechan
Page 55 and 56: slightly higher additional income a
Page 57 and 58: Table 5-9 Indirect job creation Num
Page 59 and 60: 6 The Macro Economic Impact of the
Page 61 and 62: Standard Industrial Classification
Page 63 and 64: Table 6-6 Macro economic impact of
Page 65 and 66: Figure 7-2 Cost of Gravel Road Cons
Page 67 and 68: • When adverse soil or other cond
Page 69 and 70: Table 7-5 Capital cost amortisation
Page 71 and 72: Table 7-8 Local and Import costs of
Page 73 and 74:
• In the first five years of oper
Page 75 and 76:
7.41 Table 7.4 is sourced from Tabl
Page 77 and 78:
8.10 Second, the analysis did not t
Page 79 and 80:
References Bulmer-Thomas, V. (1982)
Page 81 and 82:
practical feasibility alone, labour
Page 83 and 84:
domestic industry to set against th
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?