Women and the economy,
Neva Seidman Makgetla, August 2004
Source:
http://www.genderstats.org.za/
In the early 2000s, compared
to other groups and especially to white men, black women in South
Africa faced higher unemployment, lower incomes from work, and
relatively poor access to training and promotions. Employed women
remained largely concentrated in relatively poorly paying
occupations and industries. For African women, domestic work was
still the largest single employer.
Yet discrimination based on
race and gender had been banned for ten years. Several laws
reinforced the Constitutional requirements, and the Employment
Equity Act required employers to take positive measures to improve
prospects for historically disadvantaged employees, including women.
So why did most women
continue to face economic disadvantage?
To start with, for the first
decade of democracy, extraordinarily high overall unemployment by
world standards combined with slow economic growth. These
circumstances made employment equity appear a zero-sum game, and
very difficult to enforce.
Second, the laws on equity
essentially did not reach beyond economic transactions and
employment. They did not directly address the economic context of
high levels of unemployment and women’s lack of economic assets. Nor
did they engage persistent inequalities in homes, communities and
schools. In part, this reflects the pervasive belief that the state
should not intervene directly in family relations except in extreme
cases. But indirect methods of influencing household and community
relations, for instance through provision of assets directly to
women, were also neglected.
The problem was aggravated
by the fact that African women were over-represented in the
ex-homeland areas. Even ten years after the end of apartheid, these
regions were still extraordinarily poor and lacking in basic
infrastructure.
Government policies geared
to improving government services and supporting black ownership in
the economy should have helped address these problems.
Unfortunately, despite substantial improvement, they were hampered
by inadequate funding and, in some cases, inappropriate policies.
In sum, improving women’s
position in the economy requires structural transformation to
increase overall equity and growth, rather than just better
enforcement of anti-discrimination measures. Key steps would aim
·
To shift the formal sector toward
more labour-intensive sectors that could provide employment on a
large scale.
·
To improve the ability of poor
households to engage in the economy by providing productive assets,
skills and access to marketing and financial networks – amongst
others, through large-scale land reform as well as improved access
to credit, infrastructure and training in black communities, with a
focus on women.
·
To reduce the burden of
reproductive labour on women both by improving household
infrastructure and by influencing the division of labour in the
household through education and by enhancing women’s economic
independence.
·
To ensure genuine equity in the
education system in terms of class, race and region as well as
gender, which would be reflected at least in representative pass
rates for matric and in greater representivity in the universities.
This paper first describes
women’s overall economic position. It then locates the key factors
behind continuing differentiation in a broader structural
understanding of unemployment and poverty in South Africa. A final
section outlines some of the policy implications.
1
Women’s economic position
In 2003, almost a decade
after the achievement of democracy, women as a whole still had lower
incomes, higher unemployment, and less access to assets than men.
But racial differences were larger than gender inequalities within
racial groups. We can only understand the position of women in the
economy, then, if we also take race into account.
As the following table
shows, black women were far less likely to have paid employment than
any other group. To start with, they were more likely to be counted
as “economically inactive,” that is, to report neither having an
earned income of their own nor to be seeking one. Obviously,
virtually all these women were active in unpaid, mostly reproductive
labour, and many also received childcare grants or old-age pensions.
In addition, black women
faced far higher rates of unemployment. The unemployment rate for
African women was almost ten times as high as for white men. African
women made up 42% of the labourforce, but only 30% of the employed
and 51% of the unemployed.
Table 1. Employment by race and gender, 2003a
|
|
Women |
men |
|
African |
Coloured/ Asian |
White |
African |
Coloured/ Asian |
White |
|
Not
economically active |
5,567,000 |
877,000 |
781,000 |
3,825,000 |
506,000 |
416,000 |
|
Employed |
3,556,000 |
840,000 |
855,000 |
4,405,000 |
1,024,000 |
1,104,000 |
|
Unemployed |
4,284,000 |
383,000 |
92,000 |
3,200,000 |
318,000 |
67,000 |
|
Total |
13,408,000 |
2,100,000 |
1,728,000 |
11,430,000 |
1,848,000 |
1,588,000 |
|
unemployment rate |
55% |
31% |
10% |
42% |
24% |
6% |
|
employment as % of adult population |
27% |
40% |
49% |
39% |
55% |
70% |
Note:
a. These data use the
expanded definition of unemployment, which includes workers who
would take paid work immediately but who are too discouraged
actively to seek it.
Source:
Calculated from, September 2003 Labour Force Survey. Statistics
South Africa. Pretoria. Database on CD-Rom.
Unemployment was
particularly high for young people. African women under the age of
30 faced an unemployment rate of 75%. They constituted 17% of the
labourforce – that is, the employed plus the unemployed - but 31% of
the unemployed.
Unemployment rose for the
black population as a whole at least through the early 2000s. The
data are not entirely reliable, however. The official employment
surveys – the October Household Survey (OHS) until 1999 and the
Labour force Survey thereafter – may not be fully comparable over
time. (See Makgetla 2004c)
The main problem is that the
surveys gradually redefined unpaid labour, especially subsistence
farming and work in family enterprises as employment. The OHS
enumerators generally failed to identify this work as employment and
labelled those involved as "economically inactive.” In contrast, the
Labourforce Survey made a greater effort to capture it as informal
employment. The inclusion of subsistence farming alone as
“employment” accounted for 20% of reported employment growth between
1997 and 2002. (Devey et al, 2002)
In addition, with soaring
unemployment, the subjective nature of “unemployment” became
increasingly obvious. Standard statistics in South Africa define a
person as “unemployed” only if they are actively seeking work. The
line between economically inactive and unemployed may reflect only
an individual’s discouragement. The broader definition of
unemployment, used here, tries to reduce the subjective element by
asking only whether a person would take a paying job.
Both these factors
disproportionately affected the data on black women. Women are most
likely to be engaged in unpaid labour such as subsistence work or
support for family enterprises. Moreover, since black women face the
highest levels of unemployment, they are more likely to be
discouraged from actively seeking paid work.
Despite these caveats, as
the following table shows, reported unemployment soared through the
1990s and early 2000s. It rose relatively slowly for black women,
but they started with much higher joblessness than other groups.
Table 2. Employment
status by race and gender, 1996 and 2003
|
|
1996 |
2003 |
|
Women |
|
|
|
African |
51% |
55% |
|
Coloured/Asian |
22% |
31% |
|
White |
6% |
10% |
|
Men |
|
|
|
African |
35% |
42% |
|
Coloured/Asian |
14% |
24% |
|
White |
4% |
6% |
Source:
Calculated from, Statistics South Africa. 1996 October Household
Survey and September 2000 and 2003 Labour Force Surveys. Pretoria.
Databases on CD-Rom.
High unemployment for black
women went hand in hand with lower pay. Table 3 shows that in 2003
almost two thirds of black women earned under R1000 a month,
compared to 3% of white men. The available data suggest that the
share of women earning under R1000 a month had remained virtually
unchanged since 1996. Since purchasing power dropped by over half in
this period, this figure suggests that real earnings declined.
Presumably, however, the increasing inclusion of unpaid work
explains part of the fall in real pay.
Table 3. Incomes by race
and gender, 2003
|
|
women |
|
men |
|
|
Monthly income |
African
|
Coloured/ Asian |
White |
African
|
Coloured/ Asian |
White |
|
up to R1000 |
64% |
31% |
5% |
40% |
23% |
3% |
|
R1001 to R2500 |
18% |
32% |
14% |
35% |
30% |
8% |
|
R2501 to R4500 |
9% |
19% |
27% |
15% |
23% |
14% |
|
R4501 to R8000 |
9% |
17% |
42% |
9% |
20% |
47% |
|
over R8000 |
1% |
2% |
11% |
2% |
5% |
29% |
|
Total |
100% |
100% |
100% |
100% |
100% |
100% |
Source:
Calculated from, September 2003 Labour Force Survey. Statistics
South Africa. Pretoria. Database on CD-Rom.
Income differentials appear
largely to reflect the concentration of women in lower-paid
industries and occupations. While unequal pay for equal work
certainly persisted, it was illegal and generally camouflaged by
differences in job title and status.
In 2003, 5% of black women
were employed as managers and senior professionals, compared to 33%
of white men. Some 25% of African women were employed as domestic
workers, and 27% were elementary (that is, “unskilled”) workers.
Table 4. Occupation by race and gender, 2003
|
|
Women |
men |
|
African
|
Coloured/ Asian |
White |
African
|
Coloured/ Asian |
White |
|
Legislators, senior officials and
managers |
2% |
4% |
15% |
4% |
10% |
29% |
|
Professionals |
3% |
3% |
14% |
2% |
4% |
14% |
|
Technical and associate professionals
|
11% |
12% |
20% |
6% |
9% |
15% |
|
Clerks |
8% |
23% |
36% |
5% |
9% |
7% |
|
Service and sales workers |
12% |
13% |
10% |
13% |
10% |
8% |
|
Skilled agricultural and fishery workers
|
4% |
0% |
1% |
4% |
1% |
3% |
|
Craft and related trades workers
|
5% |
5% |
2% |
19% |
20% |
17% |
|
Plant and machine operators and
assemblers |
3% |
8% |
1% |
19% |
13% |
4% |
|
Elementary occupations |
27% |
20% |
1% |
27% |
25% |
3% |
|
Domestic workers |
25% |
11% |
0% |
1% |
0% |
0% |
|
Total |
100% |
100% |
100% |
100% |
100% |
100% |
Source:
Calculated from, September 2003 Labour Force Survey. Statistics
South Africa. Pretoria. Database on CD-Rom.
African women made little
progress in occupational terms between 1996 and 2003. Their share in
senior management and professional category rose only from 11% to
12% in this period. In contrast, Coloured and Asian men and women
gained substantially in this period, while the share of African men
reportedly declined.
Table 5. Occupation by race and gender, 1996 and
2003
|
|
women |
Men |
|
|
African |
Coloured/ Asian |
White |
African |
Coloured/ Asian |
White |
Total |
|
senior management and professionals |
|
|
|
|
|
|
|
|
1995 |
11% |
3% |
14% |
22% |
9% |
42% |
100% |
|
2003 |
12% |
5% |
18% |
20% |
11% |
35% |
100% |
|
technical and associate professionals
|
|
|
|
|
|
|
|
|
1995 |
30% |
5% |
16% |
22% |
5% |
21% |
100% |
|
2003 |
33% |
8% |
14% |
23% |
8% |
14% |
100% |
|
clerks, service and sales workers |
|
|
|
|
|
|
|
|
1995 |
21% |
9% |
22% |
29% |
8% |
10% |
100% |
|
2003 |
28% |
12% |
15% |
31% |
7% |
6% |
100% |
|
skilled production |
|
|
|
|
|
|
|
|
1995 |
8% |
3% |
1% |
54% |
14% |
19% |
100% |
|
2003 |
14% |
4% |
1% |
62% |
12% |
9% |
100% |
|
elementary occupations |
|
|
|
|
|
|
|
|
1995 |
39% |
7% |
0% |
44% |
9% |
1% |
100% |
|
2003 |
37% |
6% |
0% |
45% |
10% |
1% |
100% |
|
domestic workers1 |
|
|
|
|
|
|
|
|
2003 |
86% |
9% |
0% |
4% |
0% |
0% |
100% |
|
total employees |
|
|
|
|
|
|
|
|
1995 |
23% |
6% |
9% |
39% |
9% |
14% |
100% |
|
2003 |
30% |
7% |
7% |
37% |
9% |
9% |
100% |
Note.
1. Domestic workers were not aggregated
separately from other elementary occupations in 1995.
Source: Calculated
from, Statistics South Africa. 1995 October Household Survey and
September 2000 and 2003 Labour Force Surveys. Pretoria. Databases on
CD-Rom.
Overall, between 1996 and
2003, African women moved from the lower level professions –
essentially nurses and teachers – to clerical and retail work. This,
in turn, largely reflected the freezing of public service positions
after 1996, which closed off what had previously been a major source
of higher-level employment for black women.
As the following table
shows, changes over time emerged as generational differences.
African women under 30 were more likely to be unemployed and, if
employed, to work in retail and clerical occupations. They were
distinctly less likely to have jobs as teachers or nurses.
Chart 1. Women’s occupations by age, 2003

Source:
Calculated from, Statistics South Africa. Labour Force Survey
September 2003. Pretoria. Database on CD-Rom.
Women were also
predominantly found in relatively poorly paid sectors, as Chart 2
demonstrates. In 2003, half of all women were employed in domestic
and sales work, which are poorly paid. Some 8% were in farming, with
the vast majority subsistence farmers and farmworkers. A further 17%
were in education and health – sectors requiring considerable
skills, but paying relatively little given the high education level.
Chart 2. Industry and incomes by race and gender,
2003

Source:
Calculated from, Statistics South Africa. Labour Force Survey
September 2003. Pretoria. Database on CD-Rom.
There is a strong
statistical correlation between the percentage of African women in
the labourforce of a sector and the percentage of workers in the
sector earning under R1000.
For African women, domestic
labour remained a critical source of paid labour. Some 96% of
domestic workers were black women. This was the worst-paid industry,
with 93% of workers earning under R1000 a month. Even farmworkers
enjoyed slightly better conditions.
In short, the data point
unambiguously to the fact that, a decade after the end of apartheid,
black women were less likely to have access to any paid work at all.
Even if they had employment, they were typically engaged in
lower-level occupations and worse-paid industries. The following
section explores some of the reasons that this situation persisted.
2
Factors affecting women’s economic engagement
The two dominant economic
approaches to understanding unemployment and poverty in South Africa
generally neglected gender. One view essentially reflected standard
human-capital theories, arguing that the unemployed were essentially
unemployable because of low skill levels. (Bhorat, 2002; PCAS 2003)
The other approach, in contrast, blamed the structure of the
economy, which was associated with rising capital intensity in the
formal sector and the impoverishment and marginalisation of the
majority. (See, for instance, Makgetla 2004b; DTI 2002; Altman 2003;
de Swardt, 2003)
These two approaches
generate very different research agendas. The first tends to
emphasise an investigation of training levels and fields of study.
The second focuses attention on institutions inside and outside of
the labour market and how they reproduce poverty and joblessness. We
here explore each in turn.
2.1
Human capital and women
There is no question that
low levels of education hamper employment creation. But the data
simply do not support the argument that low levels of education
formed the main cause of rising unemployment. The persistence of
this argument seems to reflect assumptions about African skills
dating back to the apartheid era, rather than the realities of South
African society in the early 2000s.
As the following table
shows, there was virtually no difference in education levels between
African women and men. Indeed, African women under 30 had slightly
more formal education than African men. Moreover, unemployed African
youth have virtually the same levels of education as the lucky few
with jobs. In contrast, the economically inactive tended to have
substantially lower levels of education, especially for those aged
over 30 years.
Table 6. Average years of education by race,
gender age and employment status, 2003
|
|
African |
Coloured/Asian |
White |
|
|
women |
men |
women |
men |
women |
men |
|
not economically active |
|
|
|
|
|
|
|
30 or
less |
9.8 |
9.4 |
10.5 |
10.3 |
11.3 |
11.1 |
|
over
30 |
4.4 |
4.8 |
7.9 |
7.6 |
12.1 |
12.1 |
|
employed |
|
|
|
|
|
|
|
30 or
less |
11.1 |
10.5 |
11.9 |
11.3 |
13.1 |
13.0 |
|
over
30 |
8.7 |
8.6 |
10.1 |
10.2 |
13.1 |
13.1 |
|
unemployed |
|
|
|
|
|
|
|
30 or
less |
10.7 |
10.3 |
10.6 |
10.4 |
12.4 |
12.1 |
|
over
30 |
8.4 |
8.2 |
9.0 |
9.7 |
12.4 |
12.3 |
|
difference between employed and unemployed in months of
schooling |
|
30
or less |
5 |
2 |
15 |
11 |
8 |
11 |
|
over 30 |
3 |
5 |
13 |
7 |
8 |
10 |
Source:
Calculated from, Statistics South Africa. Labour Force Survey
September 2003. Pretoria. Database on CD-Rom.
In addition, education
levels for unemployed African women rose rapidly from the mid-1990s.
As the following table shows, the education level of African women
rose by over a year between 1996 and 2003, as more educated people
joined the ranks of the jobless.
Table 7. Average years of education of African
women by age and employment status, 1996 and 2003
|
|
Average years of education |
change in months |
|
1996 |
2003 |
|
economically inactive |
|
|
|
|
30
years old or less |
9.6 |
9.8 |
2 |
|
over
30 |
4.2 |
4.4 |
2 |
|
employed |
|
|
|
|
30
years old or less |
10.4 |
11.1 |
9 |
|
over
30 |
8.4 |
8.7 |
3 |
|
unemployed |
|
|
|
|
30
years old or less |
9.6 |
10.7 |
14 |
|
over
30 |
7.0 |
8.4 |
17 |
Source:
Calculated from, Statistics South Africa. October Household Survey
1996, and Labour Force Survey September 2003. Pretoria. Databases on
CD-Rom.
The argument that low skills
are the main reason for high unemployment also fails to explain
differences in unemployment for university graduates, which are
strongly related to race and gender. As the following table shows,
African women with university degrees faced an unemployment rate of
13%, compared to 1% for white men. Unemployment for African women
with other tertiary degrees was even higher.
Table 8. Unemployment amongst tertiary graduates,
2003
|
|
African |
Coloured/Asian |
White |
|
Women |
|
|
|
|
tertiary other than university |
29% |
6% |
8% |
|
university degree |
13% |
10% |
3% |
|
degrees as % of total tertiary |
22% |
31% |
42% |
|
Men |
|
|
|
|
tertiary other than university |
26% |
7% |
3% |
|
university degree |
9% |
4% |
1% |
|
degrees as % of total tertiary |
27% |
35% |
49% |
Source:
Calculated from, Statistics South Africa. Labour Force Survey
September 2003. Pretoria. Database on CD-Rom.
In addition, as Table 9
shows, black women earned less than other groups at every income
level. A white man with matric was twice as likely as an African
woman with a university degree to earn over R8000 a month.
Table 9. Education and incomes by race and
gender, 2003
|
|
African |
Coloured/Asian |
White |
|
Women |
|
|
|
|
primary |
89% |
75% |
0% |
|
some
secondary |
73% |
36% |
12% |
|
matric |
45% |
14% |
6% |
|
tertiary other than university degrees |
10% |
5% |
3% |
|
university degree |
3.4% |
4.4% |
2.6% |
|
Men |
|
|
|
|
primary |
61% |
61% |
9% |
|
some
secondary |
41% |
25% |
3% |
|
matric |
23% |
9% |
3% |
|
tertiary other than university degrees |
7% |
2% |
2% |
|
university degree |
2.8% |
3.8% |
1.4% |
Source:
Calculated from, Statistics South Africa. Labour Force Survey
September 2003. Pretoria. Database on CD-Rom.
It is possible to argue that
figures on overall education do not adequately take into account
systematic gender differences in fields of study. As the following
tale shows, women in general, and particularly Africans, tended to
take degrees in “softer” subjects – education, culture, social and
business studies. They remained poorly represented in the “harder”
subjects like science and engineering, as well as in the
professions.
Table 10. Degrees by field, race and gender, 2003
|
|
Total number |
% of degrees in field for: |
|
Field |
men |
women |
African women |
White men |
|
university degrees as % of total tertiary degrees |
37% |
44% |
32% |
23% |
57% |
|
tertiary ex university |
|
|
|
|
|
|
soft subjects (education,
social studies, culture) |
549,000 |
27% |
42% |
47% |
11% |
|
business and communications |
360,000 |
21% |
25% |
21% |
22% |
|
professionals (health, law,
services) |
279,000 |
14% |
21% |
19% |
18% |
|
hard subjects (engineering,
science, agriculture, construction) |
342,000 |
37% |
12% |
13% |
49% |
|
Total |
1,531,000 |
100% |
100% |
100% |
100% |
|
university degrees |
|
|
|
|
|
|
soft subjects (education,
social studies, culture) |
296,000 |
22% |
44% |
49% |
13% |
|
business and communications |
248,000 |
30% |
24% |
21% |
33% |
|
professionals (health, law,
services) |
202,000 |
22% |
23% |
21% |
19% |
|
hard subjects (engineering,
science, agriculture, construction) |
172,000 |
27% |
9% |
8% |
34% |
|
total |
918,000 |
100% |
100% |
100% |
100% |
Source:
Calculated from, Statistics South Africa. Labour Force Survey
September 2003. Pretoria. Database on CD-Rom.
Moreover, the majority of
black graduates still attend historically black universities, which
employers considered to be of lower quality. Both these arguments,
however, point to deeper institutional factors as a problem, rather
than simply levels of education.
In addition, except at the
highest levels, blacks and women had less access to training than
white men, as Chart 3 illustrates. Again, this points to structural
problems. After all, both the Employment Equity Act and the National
Skills Strategy required that employers prioritise training for
black women.
Table 3. Reported access to training by race and
gender, 2003
Source:
Calculated from, Statistics South Africa. Labour Force Survey
September 2003. Pretoria. Database on CD-Rom.
In short, the available
evidence points to rising levels of education for African women even
as unemployment increased. That suggests that low skills in
themselves did not form a primary cause of joblessness. Certainly
higher education levels as well as a shift to higher-paid fields
would help solve the problem. In themselves, however, they would not
generate a qualitative increase in the demand for labour or permit
equal participation by black women in the economy.
2.2
Structural interpretations
A wide variety of structural
interpretations of women’s status in the economy exist. We here add
a gender dimension to the argument.
From around 2003, the
government began to argue that the South African economy was heavily
dualist. It had a “first” economy comprising essentially the formal
sector and a “second” economy including everyone else. (See SARPN
2004)
The obvious weakness in this
argument is that the second economy does not actually constitute a
coherent economic system. Rather, it comprises a heterogeneous
grouping of the unemployed and informally employed – that is, all
those who have effectively been marginalised from the formal
economy.
The model is particularly weak in dealing with domestic workers.
They are employed in a subordinate and impermanent position in
households that, in turn, are mostly integrated into the formal
sector.
If we gender this
characterisation, it becomes clear that women are disproportionately
represented in the so-called second economy. As the following table
shows, the profile of African women’s employment status is
dramatically different from that of other groups defined by race and
gender. They are far less likely to have formal jobs, and far more
likely to be unemployed, informally employed, or domestic workers.
Table 11. Informal employment and unemployment by
race and gender, 2003
|
|
women |
men |
|
|
|
African |
Coloured/ Asian |
White |
African |
Coloured/ Asian |
White |
TOTAL |
|
% of population group |
|
|
|
|
|
|
|
|
Formally employed |
20% |
44% |
53% |
34% |
49% |
52% |
33% |
|
Informally employed |
11% |
3% |
4% |
12% |
5% |
3% |
9% |
|
Domestic worker |
10% |
6% |
0% |
0% |
0% |
0% |
4% |
|
Unemployed |
60% |
48% |
43% |
54% |
46% |
45% |
54% |
|
Total |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
|
% of employ-ment grouping |
|
|
|
|
|
|
|
|
Formally employed |
21% |
8% |
9% |
38% |
11% |
12% |
100% |
|
Informally employed |
40% |
2% |
2% |
50% |
4% |
3% |
100% |
|
Domestic worker |
86% |
9% |
0% |
4% |
0% |
0% |
100% |
|
Unemployed |
39% |
6% |
5% |
38% |
7% |
7% |
100% |
|
Total |
35% |
6% |
6% |
37% |
8% |
8% |
100% |
Source:
Calculated from, Statistics South Africa. Labour Force Survey
September 2003. Pretoria. Database on CD-Rom.
The structural divisions in
the South African economy were closely linked to spatial
disparities. Even in 2003, the former homeland areas continued to be
the poorest regions in the country. As the following table shows,
they were characterised by extraordinarily high levels of
unemployment and poverty – and a predominance of African women.
Women made up 56% of the
population of the former homeland areas, compared to 52% in the rest
of the country. Almost half of all African women adults lived in the
former homeland regions, and over 40% of African men, but under 5%
of whites, Coloureds and Asians.
Table 12 shows that African
women in the former homelands were far less likely to be formally
employed and far more likely to be economically active, if employed,
to earn under R1000 a month.
Table 12. Employment status, incomes and gender
in the former homeland areas,1 2003
|
|
African women |
African men |
|
|
predominantly homelands |
other areas |
predominantly homelands |
other areas |
|
not
economically active |
51% |
33% |
43% |
26% |
|
unemployed |
30% |
34% |
27% |
29% |
|
total
employed |
19% |
33% |
30% |
45% |
|
Of
which: |
|
|
|
|
|
-
formal |
7% |
18% |
18% |
36% |
|
-
informal |
8% |
6% |
11% |
9% |
|
-
domestic |
4% |
9% |
0% |
1% |
|
Total |
100% |
100% |
100% |
100% |
|
%
earning under R1000/month |
81% |
53% |
60% |
30% |
|
%
of adults population by area |
49% |
51% |
44% |
56% |
Note. 1. The data are from the rural areas
of KwaZulu Natal, Mpumalanga, Limpopo, the Eastern Cape and
Northwest. These areas are not identical to the former homelands,
but are largely contiguous with them. Source:
Calculated from, Statistics South Africa. Labour
Force Survey September 2003. Pretoria. Database on CD-Rom.
The structural approach
throws up four main explanations for the persistence of women’s
economic subordination.
First, the colonial and
later the apartheid state initially impoverished the black majority,
and especially women. Once the state ended those interventions,
however, the market did not spontaneously transfer productive
resources to the poor or to deprived regions in general. Government
efforts since 1994 have not sufficed to overcome the backlogs
created over centuries of oppressive rule.
Second, growth in the first
economy focused on relatively capital-intensive sectors – minerals,
heavy chemicals, auto manufacturing, telecommunications and the
financial sector. These industries traditionally employ primarily
men. In contrast, light industry and services, where women have
historically found employment, tended to stagnate.
Third, women with jobs were
still less likely than men to belong to unions. Yet labour law,
including the Employment Equity Act, relies heavily on workers' own
organisations to monitor conditions and help bring about
improvements.
Fourth, most women kept
responsibility for household labour and childcare, even if they
earned their own income. This burden was aggravated by shortcomings
in infrastructure in black communities, as well as by the impact of
the AIDS pandemic.
We here review how
developments in each of these areas affected women s economic
position.
2.2.1
Access to productive assets and infrastructure
Historically, the state
largely denied black communities access to land, education and
skills, basic infrastructure, financial services and marketing
networks. The Reconstruction and Development Programme (RDP) argued
that providing infrastructure, land and financial services would
provide the basis for increased household productivity and incomes,
as well as raising living standards directly.
In the event, these
expectations have not been borne out.
In part, the shortcomings
reflect inadequate funding. As a result, although improvements have
been made in access to basic infrastructure and education, the low
level and relatively high cost of services limits the economic
impact. Provision of services to black communities proved
particularly slow in the late 1990s, when the government cut the
budget in real terms by around 1% a year. In contrast, since 2000,
when the budget has consistently grown, service provision has
accelerated.
In part, the limited
employment impact of government anti-poverty programmes arises out
of the relative ineffectiveness of programmes to support small and
micro enterprise. This, in turn, results both from inadequate
funding and from the broader failure to restructure the formal
sector toward job-creating growth.
As the following table
shows, substantial progress was made in extending basic household
services, especially in the early 2000s.
Table 13. Access to basic
infrastructure, 1996 and 2003
|
|
Percentage of
households with access to service |
Average annual
increase in share with access |
|
Type of infrastructure |
1996 |
2000 |
2003 |
1996-2000 |
2000-'03 |
|
Electricity for lighting |
64% |
71% |
79% |
2.1% |
3.6% |
|
Electricity for cooking |
51% |
51% |
59% |
0.0% |
5.0% |
|
Piped water |
82% |
83% |
86% |
0.3% |
1.2% |
|
Flush toilet |
52% |
54% |
57% |
0.6% |
1.6% |
Source:
Calculated from, Statistics South Africa. 1996 October Household
Survey and September 2000 and 2003 Labour Force Surveys. Statistics
South Africa. Pretoria. Databases on CD-Rom.
Often, however, these
services were provided at a very low level, and sometimes at
unaffordable costs. Thus, new electricity connections to poor
households generally sufficed only for light, not for cooking or for
refrigeration. That ruled out cooking and spaza shops as a way to
make money. As the following table shows, the cost of services often
proved high for the low-income group. In 2000, while most poor
households did not pay for electricity or water, those that did paid
much more relative to their income than better-off households.
Although the government
subsidised over a million houses after 1994, progress was less
impressive in terms of improving housing, largely because of
substantial rural-urban migration. The share of informal housing
remained virtually stable at 13%, formal housing expanded from 69%
to 76%, and traditional housing declined.
Table 14. Housing by type, 1996 and 2003
|
|
% of total |
|
|
Type of housing |
1996 |
2003 |
% change |
|
formal over three rooms |
54% |
50% |
24% |
|
formal three rooms or less |
15% |
26% |
126% |
|
Informal |
12% |
13% |
42% |
|
traditional dwelling |
19% |
12% |
-18% |
|
Total |
100% |
100% |
34% |
Source: Calculated
from, Statistics South Africa. October Household Survey 1996 and
Labourforce Survey September 2003. Pretoria. Databases on CD-Rom.
A particular problem with
the housing programme was that, largely to reduce the costs of land,
most new settlements were located far from economic centres. As a
result, they reduced access to economic opportunities and
employment.
Government also improved
access to social grants considerably. These are particularly
important to women, who are more likely to suffer from unemployment.
Moreover, they were increasingly provided to mothers, which
presumably went some way toward strengthening these women’s position
within their households.
Table 15. Share of
population receiving state pensions and social grants, 1996 and 2003
|
|
African |
Coloured/Asian
|
White |
|
1996 |
|
|
|
|
State pensions (includes civil service
pensions) |
15% |
13% |
8% |
|
Social grants |
2% |
8% |
1% |
|
% earning under R1000 |
46% |
36% |
8% |
|
2003 |
|
|
|
|
State old-age pension |
19% |
18% |
16% |
|
Disability grant |
5% |
6% |
5% |
|
Child support rant |
14% |
12% |
14% |
|
% earning under R1000 |
51% |
26% |
4% |
Source: Calculated
from, Statistics South Africa. October Household Survey 1996 and
Labourforce Survey September 2003. Pretoria. Databases on CD-Rom.
The state had far less
success in supporting small and micro enterprise, which formed a
major source of income especially for poor women. The following
table demonstrates that self-employment was important for women’s
survival strategies, especially in the former homeland areas. But
they earned very little. Most self-employed women were in retail –
essentially hawkers and spaza shop runners – and the vast majority
made under R1000 a month.
Table 16. Self-employment by gender, region and
sector, 2003
|
|
women |
men |
|
|
other areas |
primarily HL |
other areas |
primarily HL |
|
% of total |
|
|
|
|
|
Wholesale and retail trade |
63% |
73% |
45% |
38% |
|
Manufacturing |
10% |
13% |
9% |
9% |
|
Community, social and personal services |
14% |
5% |
10% |
7% |
|
Agriculture, forestry and fishing |
1% |
5% |
4% |
16% |
|
Construction |
1% |
1% |
12% |
20% |
|
Transport, storage and communication |
1% |
1% |
7% |
8% |
|
Financial and business services |
8% |
1% |
13% |
1% |
|
Total |
100% |
100% |
100% |
100% |
|
self employed as % of employed |
10% |
22% |
11% |
14% |
|
% of self employed earning under R1000 |
67% |
92% |
36% |
67% |
Note. 1. The data are from the rural areas
of KwaZulu Natal, Mpumalanga, Limpopo, the Eastern Cape and
Northwest. These areas are not identical to the former homelands,
but are largely contiguous with them. Source:
Calculated from, Statistics South Africa. Labour
Force Survey September 2003. Pretoria. Database on CD-Rom.
The RDP called for the
transfer of 30% of land to smallholders. This commitment was
repeated by the ANC in every elections manifesto. Still, by 2003,
only 2,3% of land had been redistributed. Estimates suggested that
the budget for land reform would have to expand tenfold to achieve
the 30% target by 2014. (PBC 2004)
It is harder to summarise
the impact of other programmes for smaller enterprise. Still, most
observers argued that they were not very effective. (See PCAS 2003,
p. 40)
Finally, until the early
2000s, the state did very little to compel financial institutions to
serve small and micro enterprise. In 2002, at the insistence of
community groups and organised labour, together with the formal
financial institutions it engaged in the Financial Sector Summit.
Ultimately, that process should lead to improved access for poor
households to financial services.
However, the model proposed
by the financial institutions under the Financial Sector Charter to
extent facilities remained geared to wage earners rather than the
self-employed. In particular, it would provide limited deposits and
payments, primarily through electronic transfers. It would therefore
effectively discriminate against black women, who are less likely to
have formal jobs and more likely to be self-employed in remote rural
areas.
Generally, government
anti-poverty programmes were hampered by worries about cultivating a
culture of dependency. In particular, the housing, infrastructure
and land programmes increasingly insisted that, unless they were
destitute, beneficiaries must contribute to costs. Obviously, this
type of co-payment approach hits hardest at women, who tend to have
the lowest incomes. When a co-payment was introduced in the housing
programme in the early 2000s, it led to a severe slowdown in
delivery. Most eligible households simply could not afford the down
payment.
After 2000, government
ameliorated this policy by requiring that municipalities provide
free minimum services for households with incomes under R800 a
month. As the following table indicates, however, the numbers of
poor households paying for water, at least, appeared very little
affected by this strategy.
Table 17. Percentage of
households paying for water, 1996 and 2003
|
|
% paying for water |
|
Income group |
1996 |
2003 |
|
Others |
55% |
58% |
|
Indigent households (R500 p.m. in 1996,
R1000 in 2003)* |
55% |
52% |
|
Total |
55% |
56% |
Note:
R1000 in 2003 was about 25% higher than R500 in
1996. Source: 1996 October Household Survey and 2003 Labour
Force Survey
In short, while government
substantially improved access to basic services between 1994 and
2003, its efforts did not go far enough to overcome the
marginalisation of most poor households. In particular, they did not
suffice to raise incomes substantially in the former homeland areas.
2.2.2
The formal sector and women
With the failure to improve
household productivity, the formal sector remained the main source
of employment. But formal employment rose only about 1% a year from
1994, or around half the rate of growth in the population. The main
reason for slow employment creation was the low level of growth
overall combined with a long-term shift toward relatively
capital-intensive sectors.
As the following table
shows, compared to other middle-income developing countries, overall
growth in the economy was slow and investment was very low through
the late 1990s and early 2000s.
Table 18. Growth, investment and unemployment
compared to other countries
|
|
GDP growth |
GDP per capita1 |
investment as % of GDP |
unemploy-ment rate |
|
|
1990-2001 |
2001 |
2001 |
1998-20012 |
|
South Africa |
2.1% |
10,910 |
15% |
23% |
|
Middle-income countries |
3.4% |
5,390 |
24% |
5% |
|
of which: |
|
|
|
|
|
Malaysia |
6.5% |
7,910 |
29% |
3% |
|
Chile |
6.3% |
8,840 |
21% |
10% |
|
South Korea |
5.7% |
15,060 |
27% |
4% |
|
Egypt |
4.5% |
3,560 |
15% |
8% |
|
Brazil |
2.8% |
7,070 |
21% |
10% |
Notes:
1. The GDP per capita is here calculated in terms
of purchasing power parity, which seeks to measure actual output
without taking exchange rate fluctuations into account. 2. The
unemployment rate is given for one year between 1998 and 2001.
Source: World Bank, Development Indicators 2003.
Washington, D.C.
The main reasons for slow
growth appear to have been restrictive fiscal and monetary policies,
especially in the late 1990s, combined with substantial
restructuring. In particular, the opening of the economy
internationally with the transition to democracy led to a decline in
sections of manufacturing. (See Roberts 2003)
The opening of the economy
also increased pressure to maintain conservative macro-economic
policies. Typically, this emerged in terms of demands that
developing countries limit government spending, taxes and borrowing,
and maintain high interest rates. The South African government
argued in the late 1990s that international pressures required it to
adopt these kinds of pressures, which it articulated in the “Growth,
Employment and Redistribution” (GEAR) policy. (See Finance 1996)
These policies generally
depressed economic expansion. The slowest economic growth occurred
in the late 1990s, when government was cutting the budget and
interest rates soared to over 20%. The economy picked up somewhat in
the early 2000s, as the state relaxed its macroeconomic policies.
Slow growth in government
spending affected women in two ways. First, it limited limiting job
opportunities in the public service – especially education and
health. Second, it reduced government’s scope for improving
infrastructure and housing as well as support for SMEs and land
reform.
In terms of structural
policies, the state essentially embarked on an export drive, rather
than concentrating on sectors that would create employment. Yet the
dominant export sectors were all heavily capital intensive, and
therefore unlikely to create either large number of jobs or
opportunities for new enterprise. Between 1994 and 2002, the fastest
growth was experienced in auto manufacturing and heavy chemicals, as
well as platinum mining. The share of gold mining declined strongly.
The benefits of the export
focus proved particularly limited for women. Employment in the main
export sectors was strongly male dominated, as the following table
shows. The top five export industries accounted for just over two
thirds of all exports. But they accounted for only 10% of total
employment, and only 2% of women’s employment.
Table 19. Exports and employment by sector
|
Sector |
% of exports |
change in export share |
women as % of em-ployment1 |
2003 percentage of: |
|
1994 |
2002 |
women's employment |
total em-ployment |
|
mining and quarrying |
41% |
30% |
-11% |
5% |
0.03% |
0.1% |
|
machinery and equipment |
7% |
16% |
8% |
25% |
0.2% |
0.4% |
|
metals and metal products |
12% |
12% |
0% |
12% |
1% |
3% |
|
basic chemicals |
5% |
5% |
1% |
19% |
1% |
3% |
|
coke and petroleum |
2% |
5% |
3% |
27% |
0% |
8% |
|
subtotal |
67% |
68% |
1% |
12% |
2% |
14% |
|
All other industries |
33% |
32% |
-1% |
48% |
98% |
91% |
Note:
Figures for 2003. Source: Figures on
exports downloaded from TIPS EasyData on
www.tips.org.za in March 2003. Figures on employment calculated
from, Statistics South Africa. Labour Force Survey September 2003.
Pretoria. Database on CD-Rom.
In short, government
policies toward the formal sector effectively encouraged heavy
industry in a context of restrictive macroeconomic policies. The
slow growth in employment that resulted meant that the
marginalisation of women persisted. In these circumstances,
anti-discrimination policies geared to the labour-market alone could
do very little to improve women s economic position.
2.2.3
Union membership
Overall, women were less
likely to belong to unions than men. Within industries, union
density was somewhat lower for women than for men. Moreover, except
for the social services, women generally worked in less organised
sectors, including domestic work and retail. As a result, in 2003,
only 28% of women in formal and domestic jobs
belonged to a union, compared to 36% of men.
Chart 4. Union membership by industry and gender,
20031

Note: 1. Excludes the self-employed.
Source: Calculated from, Statistics South
Africa. Labour Force Survey September 2003. Pretoria. Database on
CD-Rom.
This situation made it
harder to enforce labour laws designed to protect workers. Labour
legislation essentially depends on workers themselves, organised in
unions, to monitor minimum standards and ensure improvements through
collective bargaining. The state itself does not have capacity to
enforce standards by inspecting workplaces. Moreover, beyond some
minimum requirements, it is risky for the government to set
conditions of employment, since it cannot evaluate the economic
circumstances facing individual enterprises.
This system means that where
unions are weak, the laws become much harder to enforce. Workers
must rely on complaints to state inspectors, who are badly
overstretched. The Employment Equity Act requires employers to
consult with workers on their equity plans; if unions are weak, this
consultation is harder to design and less likely to mobilise strong
worker inputs.
2.2.4
Reproductive and productive labour
All over the world, women’s
participation in paid labour has been hindered by their role in
household labour. Most women take on the role of primary family
care-giver, with the associated work of caring for children and
other household members, cooking and cleaning.
In developing countries like
South Africa, the prevalence of unemployment, especially for women,
and the associated cheap labour mean that higher-income women can
employ other women to undertake these tasks. For a privileged
minority, this situation reduces the time pressure from household
labour, as they employ (primarily African) women at a pittance.
Given very high unemployment, as in South Africa, even relatively
low-income households can often rely on help from un- and
underemployed women relatives.
But the burden of household
labour was aggravated by inadequate infrastructure in poor
communities, particularly in rural areas. In the absence of water on
site and electricity, women must spend far more time on cooking and
cleaning. Almost 40% of African women in the former homelands, or
13% of all women, spent over an hour a week fetching water. On
average, the chore took them around five hours a week. Some 25% of
African women in the former homelands spent a similar amount of
time, on average, fetching wood.
Table 20. Time spent
fetching wood and water, 2003
|
|
African women in former homeland areas1 |
all others |
|
water |
|
|
|
under 1 |
63% |
93% |
|
1 to
7 |
31% |
6% |
|
8 to
14 |
5% |
0% |
|
over
14 |
1% |
0% |
|
wood |
|
|
|
under 1 |
75% |
97% |
|
1 to
7 |
21% |
3% |
|
8 to
14 |
4% |
0% |
|
over
14 |
1% |
0% |
|
%
of population |
22% |
78% |
Source: Calculated from,
Statistics South Africa. Labour Force Survey September 2003.
Pretoria. Database on CD-Rom.
The HIV/AIDS pandemic added
to the hours spent on household labour. Typically, women ended up
caring for sick children and partners. That, in turn, made it harder
for them to keep paid employment or run their own enterprises. Much
of this labour would be made unnecessary if people with AIDS had
access to anti-retrovirals, which permit most to remain healthy for
much longer.
Finally, the housing
programme also increased time spent on care giving. As the following
table shows, subsidised housing in the urban areas was substantially
more likely to be distant from basic amenities, including clinics,
schools and welfare offices. That in itself added to the time women
had to spend to obtain services for themselves and their children.
Table 21. Distance of urban subsidised housing
from amenities, 2003
|
|
Clinic |
Hospital
|
Primary School
|
Secondary School |
Welfare Office |
Postal Services |
|
up to 30 minutes
with subsidy
without subsidy |
84%
87% |
60%
66% |
92%
94% |
86%
90% |
70%
78% |
78%
84% |
|
30 minutes to an hour
with subsidy
without subsidy |
14%
12% |
32%
30% |
8%
6% |
14%
9% |
27%
21% |
20%
15% |
|
60 minutes or more
with subsidy
without subsidy |
2%
1% |
8%
4% |
0%
0% |
1%
1% |
3%
1% |
2%
1% |
Source:
Calculated from, September 2003 Labour Force Survey. Statistics
South Africa. Pretoria. Database on CD-Rom.
3
Policy implications
The analysis provided here
points to the need for policy initiatives in four directions.
First, all anti-poverty
measures should be reviewed to ensure that they contribute as far as
possible to higher productivity and incomes at the household level.
That, in turn, requires affordable access to services at a level
sufficient to engage with the economy.
Second, and most important,
the government should do far more to support the growth of light
industry and services. That means developing a broad vision for
growth in specific industries, and co-ordinating supply-side
measures, skills development and infrastructure to achieve it.
Critically, these industries should be geared to meeting basic needs
and reducing the cost of living as well as increasing exports and
replacing imports.
Industries that could create
employment especially for women include the public services;
home-based personal services such as child care, hairdressing or
catering; the retail industry and tourism; transport; light
manufacturing (assembly of appliances, food processing, clothing and
textiles, furniture, plastics and so on); and industries downstream
from metal and chemicals production.
Third, in the labour force,
employment equity and decent conditions seem unlikely to work for
most in the absence of stronger organisation. In sectors that are
difficult for unions, it might be possible to consider mobilisation
through service or community-based organisations.
In addition, existing
anti-discrimination legislation, in particular the Employment
Equity, Skills Development and Broad-Based Black Economic
Empowerment Acts, should be reviewed systematically. The Employment
Equity Act appears to have had little real impact on employment
patterns, especially for lower-level workers. As noted above, too,
working women still have noticeably less access to skills
development.
The new sectoral BEE
Charters, arising from the Broad-Based Black Economic Empowerment
Act, set more ambitious targets. Moreover, since they are linked to
government procurement, they have a stronger enforcement mechanism.
However, the charters drafted so far set very low targets for black
women in senior management – just 4% in the Financial Sector
Charter. Moreover, they typically do not provide for promotions for
lower-level workers.
Finally, an effective policy
to advance women in the economy must look beyond the labour market.
In particular, more should be done to ensure women have access to
productive assets, skills and education and adequate housing and
infrastructure. That means above all extending and strengthening
programmes to support micro enterprise and land reform.
Ultimately, women cannot be
empowered unless the economy as a whole is restructured toward more
equitable employment-creating growth. Given the inherited economic
structure, anti-discrimination legislation necessarily ends up
benefiting only the small high-level group.
References
Altman, M. 2003. “Employment Trends and Policy
Implications.” Paper presented to TIPS/DPRU Annual Forum,
Johannesburg, August.
ANC. 1994. Reconstruction and Development
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Bhorat, H. 2002. “Employment Trends: Has the
Economy Created Jobs Since GEAR?” in, South African Labour
Bulletin XXVI.1 (February). Johannesburg.
COSATU. 2003. Employment Creation and
Investment. Draft Labour Position Paper for the Growth and
Development Summit. Downloaded from
www.cosatu.org.za. August 2003.
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