According to research published by the International Labour Office in Geneva, the actual rate of unemployment in South Africa may be as much as one-third lower than stated figures. Prepared at the request of the South African Government, the results of the study were recently presented to the Cabinet and to President Nelson Mandela. The ILO research highlights the major labour market challenges that must be met in order to ensure economic growth and social stability, including overcoming income inequality, reducing unemployment and boosting industrial productivity. The report attributes the uncertainty over the extent of unemployment to inadequate and sometimes outdated statistics. Analysis of available data shows that the level of employment has been underestimated, as has the level of employment growth since 1994, when the South African economy began to grow, by about 4 per cent annually.
Rural women are a particularly vulnerable group of poor workers.
The report also cites comparatively poor labour productivity in South Africa by international standards, but says that the problem is often attributable to outdated management and organisational structures and not necessarily high wages. High non-wage labour costs are also cited as contributing factors. Among the report's recommendations is reduced work hours and increased shiftwork, which should be encouraged by higher overtime rates, not just by regulations. And they were more than twice as likely to be operating 15 or more shifts a week. The report cites a lack of training, rigid job structures and outmoded job-grading and wages systems as posing problems for many South African firms.