Is there a relation between the labour market regulation and the high unemployment rate in South Africa? an assessment of the south African labour market regulation

Abstract

This research paper is a review of the assertion by some commentators that the regulation of the labour market is a cause of the high unemployment rate in South Africa. It starts by providing a historical background of statutory industrial relations in South Africa leading to the current labour dispensation. The discussion includes a review of the current labour legislation and assessment of its compliance with international law. The rating of the South African labour market by the Doing Business study is discussed. This study seeks to ascertain whether there is a causal relation between labour market regulation and the unemployment rate. The conclusion reached is that South African labour legislation complies wit international law as espoused in International Labour Organisation (ILO) Conventions, is not excessively rigid and, most importantly, that there is no convincing evidence of a causal relation between labour market regulation and the unemployment rate.