In the media and the political arena, there is concern that social grants discourage the unemployed from seeking work and foster a culture of dependency. Is such concern justified in South Africa? This study examines people’s views about paid work, social grants, and their relationship. Its findings refute theories of dependency among South Africans living in households that receive grants, and also suggest ways of helping the unemployed to find work.
The study looks at differences in attitudes between those who define themselves as poor or unemployed, and as non-poor or employed. It examines whether the poor or unemployed seem detached from the labour market, do not value paid work, and are content living on grants. Key areas explored are difficulties in finding work, perceptions of dependency, and attitudes towards the state’s role in providing grants for the unemployed, financed through taxation.
In September 2006, 26 per cent of South Africa’s economically active population were unemployed. However, there is no social assistance for able-bodied people of working age. The Unemployment Insurance Fund covers fewer than 10 per cent of workers. Social grants exist for some groups, including disabled people and children with low-income carers, and households usually pool any grants received.
The study found that the attitudes of the poor and of grant recipients did not differ from those of other respondents. Both those in and out of work valued paid work highly, agreeing that it promotes dignity and helps prevent social isolation.
- Eighty per cent of the unemployed were looking for work, but most were pessimistic. Key obstacles were issues in the labour market and wider economy, rather than lack of motivation or dependence on grants.
- The main barrier was a lack of jobs. A significant minority of the unemployed were also under-skilled or under-experienced. Some cited high transport costs, and some lack of childcare.
- The unemployed were extremely motivated to find work. The majority were willing to relocate, train, or take a low-paid job. People sought jobs through informal networks; virtually none used state or private employment agencies.
- Eighty per cent of people felt that most of those receiving grants desperately needed the help. Most respondents favoured extending support for unemployed people through the grants system, even if this meant higher taxes.
- Most people felt that lone parents should seek work, and that the government should help them with childcare.
Several key measures could improve support for the unemployed. These include social grants or a Basic Income Grant for the unemployed; a shift in macroeconomic policy to address job shortages; and training appropriate to emerging job markets. In the South African context, requiring grant recipients to demonstrate that they are seeking work is not necessary or appropriate.
- A more interventionist approach to job creation is needed, rather than a belief that market-led economic growth will trickle down to the unemployed.
- High quality training for the under-skilled or under-experienced is needed to prepare them for jobs now becoming available in areas like new technology.
- Free or subsidised transport for the unemployed and more Early Childhood Development Centres or creches should be provided.
- Improved centres for job seekers are needed. Registration fees charged by private employment agencies were perceived as a barrier.
