A regional analysis of time series data trends (1972/73 to 2007/08) in Number of Labour Units, Labour Productivity and Real Wages within the South African sugar industry initially displays a counterintuitive result. Economic Literature proposes that increasing labour market rigidities will result in an increase in transaction and wage costs with resultant decrease in employment. The results show an increase in employment in the industry, since the bundle of labour legislation was first extended to agriculture. This increase is explained by an increase in the Area under Cane. Reasons for the increased Area under Cane are complex and are an avenue for further research
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