Abstract
M.Com. (Economics)
The inability of the formal sector in South Africa to create a sufficient number of
employment opportunities for the country's growing economically active population, causes an increase in the size of the informal sector. It is in the informal sector where the
unemployed look for earning opportunities in an effort to ensure survival. Three main reasons given for this inability of the formal sector to create a sufficient number
of employment opportunities include: high levels of growth in the annual number of new entrants to the labour market; a decrease in the economy's production elasticity of employment; and the high elasticity of substitution between capital and labour ...