We noted at the outset that changes in the unemployment rate can be viewed as
resulting from either a temporary shock or a more permanent structural change. We
proceeded by using several nationally representative household surveys to investigate
multiple aspects of South African unemployment. On the more aggregate level, we noted
that the demand for unskilled labor had fallen and that this was particularly manifested in
the agricultural and mining sectors. Concurrent with the decline in the demand for lessskilled
labor, there was a large increase in the supply of less skilled labor. Much of this
increase was in the form of a large influx of African women into the labor market. The
result of the increased supply and decreased demand was, predictably, increased
unemployment.