The United Nations Conference on Trade and Development (UNCTAD): The Impact of Trade in Services for Employment

The United Nations Conference on Trade and Development (UNCTAD) commissioned research exploring the services sector in South Africa to understand whether trade liberalisation within the sector has contributed to viable, sustainable employment over the past decade. The intention was then to publish the results of this research in one of UNCTAD’s annual publications. Employment and economic output data were employed to assess whether employment growth has kept up with GDP growth in the services sector. Desktop research was supplemented by data and econometric analysis, and reference was made to Lesotho as being the least developed country situated within the borders of South Africa.

Key findings from the analysis indicate that the services sector in South Africa has experienced higher average annual growth rates than those recorded in the agricultural and manufacturing sectors. This has created an expectation that this growth will spill over into employment in other sectors.