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Determinants of labour productivity in the Eastern Cape

Published - 02 Jun 2021
Dr Clement Moyo
Date of Publication:
ECSECC/ Nelson Mandela University
The purpose of this study is to examine the determinants of labour productivity in the Eastern Cape. The focus on labour productivity as opposed to capital productivity is due to its close links with the socio-economic goals of reducing unemployment, alleviating poverty levels and inequality reduction, which are among the major targets of the Eastern Cape. The province has been plagued by the challenges of low economic growth and high unemployment. The decline in productivity is one explanation for the stagnant economic growth and stubbornly high employment rates. Labour productivity has been stagnant in South Africa since 2011 which coincides with low levels of economic growth and employment. The performance of the Eastern Cape economy mirrors that of South Africa to a large extent.