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Reducing unemployment: Waiting for high growth? Waiting for Godot?

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Reducing unemployment: Waiting for high growth? Waiting for Godot?

12th March 2013

By: Econ3x3

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In trying to reduce unemployment in South Africa, the pursuit of higher economic growth is the single most agreed-upon policy strategy. The consensus on this ‘obvious solution’ may blind us to the fact that economic growth, though important, may only be half of the solution. Attempts to fine-tune and turbo-boost the formal-economy ‘engine of growth’ to absorb more labour are fundamentally constrained. Economic policy makers must look at other options for generating employment and self-employment for unemployed people.

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Written by Frederick Fourie, Professor of Economics, University of the Free State

This article was first published on the Econ3x3 website – Accessible policy-relevant research and expert commentaries on unemployment and employment, income distribution and inclusive growth in South Africa.

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