The Economic Impact of Electricity Price Increases on ... - Eskom

<strong>The</strong> extent to which an industry can generate employment for unskilled
and semi-skilled workers is important in the context <strong>of</strong> South Africa –
private households, agriculture and construction top this list.
% <strong>of</strong> total sector's
employment
5
100%
80%
60%
40%
20%
0%
11% 15%
61%
28%
Private households
49%
36%
Agriculture, forestry and
fishing
30%
52%
18%
Construction
<strong>The</strong> demand for skilled, semi-skilled and
unskilled labour by sector, 2010
47% 48% 50% 53%
65%
69% 72%
43% 42% 39%
40% 29% 27% 22%
10% 10% 11% 7% 7% 5% 6%
Wholesale and retail trade
Manufacturing
Mining and quarrying
Transport, storage and
communication
<strong>Electricity</strong>, gas and water
supply
Financial, insurance, real
estate and business
services
Current Structure
<strong>of</strong> SA Economy
• In South Africa, a large proportion <strong>of</strong> the potential workforce and unemployed have attained only a basic level <strong>of</strong> education so the
extent to which an industry generates or can generate employment for relatively low-skilled workers is also <strong>of</strong> interest to
policymakers.
• Frost and Sullivan (June 2011) argue that the economy would become more energy intensive if it is reoriented towards creating
employment for semi-skilled and unskilled workers but it is not clear that this would be the case since the industries that demand the
largest proportion <strong>of</strong> low and semi-skilled labour are labour rather than energy-intensive - agriculture (85%), private households
(89%) and construction (70%) and wholesale\retail trade (53%)
Source: Deloitte Analysis, Quantec
Key points
Community, social and
personal services
Skilled
Semi Skilled
Low Skilled
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