n Journal of Public Administration - Econometric examination of the impact of productivity in economic sectors on total employment in the Capricorn District Municipality, South Africa

Volume 54 Number 4-1
  • ISSN : 0036-0767


Over the past few decades, the levels of unemployment have been rising and reached a peak in 2019 in South Africa of 29%. To reduce these high levels of unemployment, the key economic sectors need to play a pivotal role in job creation. Therefore, the study on which this article is based analysed the impact of key economic sectors on employment creation on a regional level in a developing region in South Africa, namely, the Capricorn District Municipal region in Limpopo Province. The objective of the study was to contribute to the existing literature on sectorial regional economics by analysing the employment situation in the selected developing region. To achieve the objectives of this study, a panel ARDL econometric model was estimated with total employment in the region as the dependent variable, while productivity of all the main economic sectors including tourism in the region was used as independent variables. One of the significant findings was that productivity of trade, tourism and finance sectors was found to be positively related to employment creation, while construction, mining, agriculture, community service and manufacturing revealed a negative relationship with employment. The study articulated strategies such as restructuring the labour-intensive sectors such as agriculture, mining, manufacturing and tourism as well as infrastructure development to improve the employment situation in the study region.

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