An analysis of the impact of sectoral employment on economic growth in South Africa

This study aims to analyze the impact of sectoral employment on economic growth in South Africa. This study uses quarterly time series data from Q1 2008 to Q2 2024 collected from Quantec Easy Data. The results of the ARDL reveal that employment in agricultural, construction, wholesale, transport, financial, and private household sectors boosts South African economic growth in the short run, however, employment in manufacturing and other sectors negates economic growth. The ARDL long-run results reveal that employment in the transport and financial sectors boosts economic growth, however, employment in agricultural and other sectors negates economic growth in South Africa. The robustness checks of the DOLS findings indicate that employment in agricultural, wholesale, community, and private household sectors boosts economic growth in the short run in South Africa. The robust FMOLS results indicate that employment in construction, transport, and community sectors boosts economic growth, however, employment in mining, manufacturing, electricity, and other sectors negates economic growth in South Africa in the long run. The study recommends that policymakers and the government offer support focused on agriculture, construction, wholesale, transport, community, and private household sectors through subsidies, tax incentives, and training programs for economic growth.