The impact of employment protection legislation and minimum wage regulation on economic growth – a South African perspective

Abstract

The government identified the small business sector as an important variable in sustainable economic growth and employment creation. The purpose of this study is to determine the impact of minimum wage regulation and employment protection policies on the unemployment statistics of South Africa. Unemployment is an aspect that needs attention to assist with long-term sustainability of growth. The questionnaire was distributed to approximately 20 000 small business owners in South Africa and 1239 responded. Of the 1239 responses, 900 could be used. The research propositions were that employment protection legislation relates to a decrease in job creation and minimum wages relates to higher unemployment. The third proposition is an assumption made in the event that the first two propositions were proved correct. These propositions were proved incorrect.