The number of people in the lowest living standards measure has decreased by 77 percent over the last 10 years according to the South African Institute of Race Relations.

Using living standards measures, a marketing tool developed by the South African Advertising Research Foundation, the Institute found that in 2001, one in 10 (11 percent) adults were in LSM 1, the lowest living standard category, but by 2010 this had fallen to just two percent.

Over the same period, the proportion of adults in the top three categories, 8 to 10, increased by 25 percent.

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 person’s LSM.

The research manager at the Institute, Lucy Holborn, said that despite high unemployment and shortcomings in service delivery, living standards have actually improved significantly over the past decade.

“There are, however, still notable racial discrepancies. In 2001, Africans made up 99.7 percent of those in LSM 1, but only three percent of those in LSM 10. In 2010 Africans made up 98 percent of those in LSM 1, and 19 percent in LSM 10. Of adults in LSM 10, 65 percent were white. The data shows that the racial differences have narrowed slightly, with more representation of Africans in the top LSM groups than 10 years ago, demonstrating a growing African middle class,” Ms Holborn said.

Worryingly, however, 98 percent of people in LSM 1 in South Africa in 2010 were black.

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