Key Points:

  • Job creation is a top priority for South Africa.
  • Unemployment is unacceptably high, and the economy must be pushed into a more labour demanding growth path.
  • However consensus ends there. Policy recommendations are bedevilled by theoretical, empirical and ideological difficulties.
  • This paper reviews the international literature on labour-demanding growth and draws some general policy recommendations. Part 1 examines the contrasting records of East Asia and Latin America, while Part 2 investigates problems of job creation in today‚Äôs increasingly globalised world, reviewing debates about the impact of technology, managerial strategies and international trade on labour markets in high and middle-income economies.
  • The author addresses South African policies more directly in a companion paper,
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