Unemployment, marginalisation and survival in Greater East London

Abstract

This article draws on selected findings of one of a series of surveys conducted by the authors in the Eastern Cape province, dealing broadly with labour market issues. Particular attention is accorded to levels of unemployment, the extent of migrancy, the operation of extended networks of support, and survival strategies. This is followed by a brief look at perceptions of crime, and the extent to which crime is seen as an effective survival mechanism by the most marginalised. It is concluded that economic reconstruction in the province should take account of certain prevailing realities, including the operation of extended networks of support and the relative lack of mobility of the most marginalised, the limited capacity of the informal sector to absorb further numbers of the structurally unemployed, and the relative propensity of the most marginalised to engage in crime as a survival strategy.

Poverty at the Household Level

“…Dinkelman and Pirouz (2002) distinguish between "discouraged" workers who have rationally decided to stop searching (and, formally, leave the labour force), and "disheartened" workers who have rationally decided not to search (or to enter the labour force). Both types of worker are however willing to work and would rather have a job than be unemployed: to them the (expected) costs of searching are simply too high, due in part to spatial friction and a lack of information and support at the household level; while their chances of finding a job are also too low, due partly to their limited capabilities and the high levels of (narrowly defined) unemployment in their neighbourhoods (Dinkelman and Pirouz, 2002;Haines and Wood, 2002;Wittenberg, 1999).…”

“…Similarly, household members may borrow the required money, or acquire it illegally, presumably because they expect a positive net present value by doing so (e.g. Haines & Wood, 2002).…”

Marginalised Groups’ Survival in an Informal Sector in Tanzania

“…Touts working in bus terminals are among the marginalised individuals living in urban areas whose living conditions are of deficient standard (Uyieh, 2018;Klaeger, 2012). Haines and Wood (2002) argue that the capacity of the informal sector to absorb the most marginalised groups cannot be overstated. Hence, to a greater extent, it helps to get rid of individuals who may resort to crimes as their survival mechanism.…”