Investigating the relationship between transport and labour discouragement in south africa

Abstract

South Africa recorded an unemployment rate of 34.4% in 2021, its highest since the first Quarterly Labour Force Survey was conducted in 2008. South Africa has also seen a rise in the number of discouraged work seekers, reaching 3.3 million individuals in 2021. These are individuals who want to work, but are discouraged to actively search for employment. This research seeks to determine whether the rise in transport cost impacts on an individual’s decision to search for employment. Descriptive statistics are used to report on the discouragement and transport trends between 2008 and 2020, making use of the Quarterly Labour Force Surveys, National Household Travel Surveys and National Income Dynamic Surveys. This research indicated the disproportionate household expenditure on transport to search for employment between different income groups. A panel regression model indicated a positive relationship between transport cost increase and discouragement. Understanding the impact of transport cost and affordability on job search can assist with strategies to reduce discouragement and long-term unemployment.