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Labour Definitions for South Africa

September 8, 2017 in Education

Discouraged work-seeker is a person who is not employed, wants to work, is available to work, but does not take active steps to find work. This person asserts that the main reason for not seeking work is any of the following: no jobs available in the area; unable to find work requiring his/her skills; lost hope of finding any kind of work.

Employed persons are those aged 15–64 years who do any formal work for at least one hour.

Employment-to-population ratio (labour absorption rate) is the proportion of the working-age population that is employed.

Informal employment identifies persons who are in precarious employment situations irrespective of whether or not the entity for which they work is in the formal or informal sector. Persons in informal employment therefore comprise all persons in the informal sector, employees in the formal sector, and persons working in private households who are not entitled to basic benefits such as pension or medical aid contributions from their employer, and who do not have a written contract of employment.

Informal sector: The informal sector has the following two components:

  • i) Employees working in establishments that employ fewer than five employees, who do not deduct income tax from their salaries/wages; and
  • ii) Employers, own-account workers and persons helping unpaid in their household business who are not registered for either income tax or value-added tax.

The labour force comprises all persons who are employed plus all persons who are unemployed.

Labour force participation rate is the proportion of the working-age population that is either employed or unemployed.

Long-term unemployment: Persons in long-term unemployment are those individuals among the unemployed who were without work and trying to find a job or start a business for one year or more.

Not economically active: Persons aged 15–64 years who are neither employed nor unemployed.

Persons in underemployment (time-related) are employed persons who were willing and available to work additional hours, whose total number of hours actually worked are below 35 hours per week.

Underutilised labour comprises three groups that are defined as follows: persons who are underemployed, persons who are unemployed, and persons who are discouraged.

Unemployed persons are those (aged 15–64 years) who:

  • a) Are not employed; and
  • b) Are actively looking for work; and
  • c) Are available for work; or
  • d) Have not actively looked for work, but are available for work.

Unemployment rate is the proportion of the labour force that is unemployed.

The working-age population comprises all persons aged 15–64 years.

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