Abstract
Since its transition to a free and democratic society in 1994 South Africa has increasingly become part of the global community. South African goods and services flow freely across borders to other markets and likewise goods and services from outside South Africa flow into the country. The South African economy is judged according to how it competes in the global economy placing increasing pressure on South African businesses and the economy generally to be competitive.
Government needs to create the economic environment in South Africa which allows businesses to be in a position to compete, by introducing appropriate economic and monetary policies. Recent policy decisions have tended to focus on price control and stability and stimulating economic growth. These policies, it is hoped, would lead to sustained economic growth and the creation of employment. One particular area of concern is government’s lack of adequate focus on unemployment in South Africa. The unemployment rate has increased since 1994 and specific labour market policies, aimed at stimulating employment creation, are required.
The South African labour market is characterised by a high level of institutional regulation through labour legislation which, while protecting the rights of workers, tends to create barriers to employment creation. The issue is whether South African labour legislation is inflexible and whether that inflexibility is a hindrance to the creation of employment and the reduction of unemployment. This study seeks to explain and evaluate the role of South African labour legislation and the effect it has on employment creation and the high rate of unemployment in South Africa.
Prof. S. Chetty