More South Africans receiving social grants than those working

Figures don’t lie! Or do they? South Africa’s latest labour survey shows that 44 000 jobs were created in the first quarter of this year increasing the number of people in formal employment to 13.6 million.

In his budget for 2013 Finance Minister Pravin Gordhan said 16.1 million South African were receiving social grants, almost three million more than those employed.

Statistics South Africa says the total population is estimated at 52.98 million by mid 2013.

Employment is on the rise but has not reached the 2008 peak of 14 million people. It hit a low of 12.9 million in 2010.

Unemployment figures were a bit disturbing. Though 44 000 jobs were created in the first quarter, unemployment increased by 100 000 to 4.6 million.

A staggering 2.3 million were classified as discouraged work seekers. Almost two-thirds of those unemployed had been looking for jobs for a year and more and 59.4 of them do not have Matric.

More than half of those unemployed, 52.9 percent, were aged between 15 and 24 but if the age band was widened to 15 to 34 the figure of the unemployed shot up to 70.7 percent.

Of the 16.1 million receiving social grants 11.4 million were receiving child support, 2.9 million old age grants and 1.2 million disability grants.

Kwazulu-Natal had the highest number of those receiving grants at 3.9 million, followed by Eastern Cape with 2.7 million and Gauteng at 2.2 million.

Northern Cape had the lowest number at only 419 000.

What do all these figures mean? I am not an economist or social scientist. But I think the issue needs to be debated considering that the number of those on grants is expected to increase to 17.2 million by 2015/2016.

Gordhan said only 2.5 million were receiving grants in 1998.