This paper attempts to understand some of the key drivers of employment and earnings trends within
the South African labour market in the 15 years following the demise of apartheid. A number of factors
are discussed which feature in the understanding of South Africa’s labour market dynamics in
general, and its high unemployment levels in particular. The role of demographic characteristics in
determining labour market outcomes is investigated, along with employment trends by sector. The
paper also analyses the skills mismatch between labour demand and supply. The role played by the
institutional regulatory framework in the labour market is examined and estimates of the wage premia
associated with union and bargaining council membership are presented. The paper also discusses
the role played by the quality of higher education in determining labour market success.