Macro-fiscal analysis
In the media

Impact of Load Shedding on South African Labour Market

SA-TIED
May 2024

The SA-TIED Working Paper titled "Watts happening to work? The labour market effects of South Africa's electricity crisis" has received significant media attention. This paper explores the impact of frequent electricity outages (load shedding) on labour market outcomes in South Africa.

The research highlights that load shedding is associated with significantly lower employment rates, working hours, and earnings. Employment is more sensitive to outages, threatening job creation and preservation. While low levels of load shedding have minimal impact, higher levels significantly harm the labour market, particularly in manufacturing. The findings indicate that South Africa's labour market is largely unaffected by low levels of load shedding, but high levels are especially costly.

The following media outlets have featured this important research:

The Conversation Africa: Power cuts have hit South Africa's labour market hard – the biggest toll has been on jobs, new research
Times Live: Power cuts have hit South Africa's labour market hard – the biggest toll has been on jobs, new research
MoneyWeb Radio Interview with Tim Köhler : High levels of loadshedding are costly for SA’s labour market
I.T Online: High levels of loadshedding are costly for SA's labour market

Business Day: How power cuts have affected employment