Bell, Trevor : Unemployment in South Africa
Bell, Trevor : Unemployment in South Africa
Bell, Trevor : Unemployment in South Africa
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This clearly does not mean that <strong>in</strong>formal sector unemployment is<br />
unimportant or even that measures should not be adopted which<br />
facilitate its expansion. (kl the contrary, given the crisis of<br />
employment <strong>in</strong> the formal sectors of the economy, the question of the<br />
absolute magnitude, trends <strong>in</strong>, and the nature of <strong>in</strong>formal sector<br />
employment, and of the possibility that it might help <strong>in</strong>creas<strong>in</strong>gly <strong>in</strong><br />
future to alleviate the situation of people unable to f<strong>in</strong>d formal<br />
sector jobs, is of vital importance. This is especially so s<strong>in</strong>ce the<br />
currently difficult economic conditions be<strong>in</strong>g experienced by the<br />
economy as a whole may well persist for some years to come. The<br />
poasibility of chang<strong>in</strong>g regulations, such as those relat<strong>in</strong>g to street<br />
hawkers <strong>in</strong> urban areas, which at present impede the activities of<br />
<strong>in</strong>formal sector <strong>in</strong>come earners, as well as various other aspects of<br />
the problem of <strong>in</strong>formal sector employment, therefore, call for<br />
serious reconsideration. In addition to the possibility that it will<br />
help provide badly needed jobs, it might well be found, as it has<br />
been elsewhere, that <strong>in</strong>formal sector activities perform a positive<br />
economic function.<br />
It is quite clear, too, from our discussion above, that the<br />
possibility that the <strong>in</strong>formal sector has already generated a<br />
significant <strong>in</strong>crease <strong>in</strong> employment <strong>in</strong> recent years, and may do so to<br />
an even greater extent <strong>in</strong> future, has considerable significance for<br />
the way <strong>in</strong> which the worldwide problem of unemployment manifests<br />
itself <strong>in</strong> this country compared with other, more advanced countries.<br />
Whereas <strong>in</strong> Europe it has ma<strong>in</strong>ly <strong>in</strong>volved a substantial <strong>in</strong>crease <strong>in</strong><br />
open, full unemployment, with a sharp dichotomy between those<br />
employed and those out of work, <strong>in</strong> <strong>South</strong> <strong>Africa</strong>, as (probably also)<br />
<strong>in</strong> other semi-<strong>in</strong>dustrialised and less developed countries, it is<br />
likely to a substantial extent to <strong>in</strong>volve an <strong>in</strong>crease <strong>in</strong><br />
underemployment as well, both <strong>in</strong> the homelands and <strong>in</strong> urban and<br />
peri-urban areas.<br />
This may, <strong>in</strong>deed, be a significant advantage which a comparatively<br />
underdeveloped country like <strong>South</strong> <strong>Africa</strong> has over advanced <strong>in</strong>dustrial<br />
countries, particularly <strong>in</strong> economic conditions <strong>in</strong> which it has