Question

Analyse the impact that the increasing number of social grands may have on the unemployment rate ​

Answer 1

Let us understand what a social grant is.

A social grant is a facility provided by the government based on some category like people who possess low income and other related criteria. But the thing is that these social grants make people to sit in one place and get things without working or servicing. Because of this many people stay unemployed. It makes people lazy and they also depend on the freebies. Grants are always necessary but it should not create one another issue.

Answer 2

Social grants are basic form of income, given by the state to the people who are unable to provide sufficiently for themselves. There are many forms of grants like child support grant, disability grant, grant for older persons, etc. These grants are very helpful for the people who are unable to earn basic necessities for themselves. Grants are helpful to the alleviation of poverty. But they are not the long term solution for this problem. Grants are basically given to the unemployed people. So higher the unemployment rate, greater the grants and vice versa. Grants are not the long term solution to poverty, but the long term solutions are higher economic growth and greater chances of employment in the country. With the higher economic activities, there will be more chances of employment. And thus people filing for unemployment claims may drastically decrease resulting in dropping of Unemployment Rate in the state.