Socio Economic - Transnet

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3.3 Labour and Economic AnalysisIn the analysis of the labour and employment situation in a municipal area, it is necessary to focusattention on the size and spatial distribution of the labour force. Secondly, the characteristics of thelabour market should be analysed. To this end, it is necessary to examine the supply of labour, whichis derived from figures on the economically active population in a municipal area. The demand forlabour, on the other hand, is an indication of employment opportunities, which are determined by theeconomic structure of an area along with the level and growth in economic activities. Unemployment,and in a sense transfrontier commuting, provides an indication of the difference between supply anddemand and implies that equilibrium in the labour market necessitates both expansion of economicactivity and the curtailment of population growth.Figure 4: Composition of the labour forceA third issue that should be addressed is involvement in the peripheral sector, as not all potentialworkers are active in the labour market. Finally, the quality of the labour force needs to be analysedas it provides information on the employability of the workers.The term labour force refers to those people who are available for employment in a certain area.Figure 4 illustrates the different components of the labour force and the relationship between them.3.3.1 Description of the Msukaligwa Local Municipality Labour forceTable 6: Msukaligwa Local Municipality Labour forceDescriptionNumberPopulation 126 687Economically active 64 560Formal and informal (Total) 36 971Formal 26 104Formal - Highly skilled 4 402Formal - Skilled 10 739Formal - Semi- and unskilled 10 963Informal 10 867Unemployed 3 033Unemployment rate (Percentage) 20.80 %Labour force participation rate (Percentage) 57.27 %Table 6 describes the labour force of the Msukaligwa LM. According to the 2011 data acquired fromthe Quantec database, Msukaligwa Local Municipality has 64,560 economically active persons.26,104 people in the municipality are employed in the formal sector while 10,867 people are active inthe informal sector of the economy and 3 033 are shown to be unemployed. The municipality has anunemployment rate of 20.80% and a labour force participation rate of 57.27%.5 July 2013 Page 14
The size of the informal sector includes subsistence agriculture (not necessarily applicable in themunicipal area), is difficult to establish with a reasonable degree of accuracy and can easily be underestimated.One reason for this is that people involved in informal activity often classify themselves asunemployed.Obtaining the participation rates, involves calculating the labour force or the economically activepopulation relative to the potential labour force, (i.e. the population in the age group 15 to 64 years).These rates reflect the percentages of the said population that are actually economically active.Formally employed refers to people who are selling their labour or who are self-employed in theformal sector of the economy, for pay or profit. Informally employed includes all people who areactive, for pay or profit, in the informal or unregistered sector of the economy. Unemployed arepersons actively looking for a job, but who are not in any type of paid employment.The following figures describe each of the most important elements over time. This is done toestablish patterns in the Labour force and to assess any changes that might have taken place.3.3.1.1 Economic active population390003800037000360003500034000330003200031000Figure 5: Change in economic active population (No. ofpeople)Includes the formally employed, theunemployed, and those persons active inthe informal/ unregistered sector. The terms‘supply of labour’ and the ‘labour force’ areused as synonyms for the economicallyactive population.The number of people in the economicallyactive population has shown an overalldecline over the study period as indicated inFigure 5. There has been quite a drasticdecrease in this figure between 2000 and2003, and again between 2007 and 2010.This however correlates to the economicdown turn experienced in 2008.3.3.1.2 Formal employment35000300002500020000150001000050000The formal employment sector follows asimilar trend to that of the economicallyactive population graph above, although thedifferences were less extreme. Since 2000there has been a decline in the number ofpeople that are formally employed in themunicipality. The graph does show that thisfigure has become more stable since 2009.Figure 6: Change in formal employment (No. of people)3.3.1.3 Informal employment5 July 2013 Page 15
Page 1 and 2: Transnet - Swazi Rail Link - Msukal
Page 3 and 4: Urban Edge: The urban edge is defin
Page 6 and 7: Socio-Economic Impact Assessment1 I
Page 8 and 9: 3.2.1 SizeThe size of the populatio
Page 10 and 11: Based on the population size over t
Page 12 and 13: Ward 19 4284 2564 0 1602 0 0 0 0 11
Page 16 and 17: 120001000080006000400020000The info
Page 18 and 19: The most noticeable is the differen
Page 20 and 21: Table 9: GVA output per labour unit
Page 22 and 23: 9008007006005004003002001000GVA out
Page 24 and 25: When economic sectors are analysed
Page 26 and 27: Settlement Type Town/City Developme
Page 28: 6 Works CitedCSIR, 2007. Integrated

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