LIVING STANDARDS: Living Standards on the Up
Recent Gauteng Business News
Using Living Standards Measures (LSMs), a marketing tool developed by the South African Advertising Research Foundation, the Survey shows that in 2001, one in ten (11%) adults were in LSM 1, the lowest living standard category. By 2010 this had fallen to only 2%.
Over the same period, the proportion of adults in the top three LSM categories, LSMs 8 to 10, has increased by 25%. In 2001, 16% of adults were in LSMs 8 to 10, while by 2010 this had increased to 20%, or one in five adults.
The Determining Factors for Calculating Living Standards
LSMs use criteria such as whether people are urbanised or whether they own motor vehicles and major appliances to determine standards of living. Income is not used to determine a persons LSM.
The research manager at the Institute, Ms Lucy Holborn, said that despite high unemployment and shortcomings in service delivery, living standards have actually improved significantly over the past decade.
Racial Living Standards Still Very Much Lopsided
There are, however, still notable racial discrepancies. In 2001, Africans made up 99.7% of those in LSM 1, but only 3% of those in LSM 10. In 2010 Africans made up 98% of those in LSM 1, and 19% in LSM 10. Of adults in LSM 10, 65% were white. The data shows that the racial differences have narrowed slightly, with more representation of Africans in the top Living Standards Measures groups than ten years ago, demonstrating a growing African middle class, Ms Holborn added.
Business News Sector Tags: Health|