With youth unemployment reaching its rocket high, over 8.2 million, this is bound to put pressure on the SASSA R370 SRD grant.
The SRD grant was created specifically to provide financial help to unemployed people from disadvantaged backgrounds.
There will be more pressure on the grant, especially after they’ve recently implemented an increase from R350 to R370 in April 2024.
Youth Unemployment Stats in South Africa
South Africa faces a daunting challenge with youth unemployment. As of the first quarter of 2024, the unemployment rate for young people (aged 15-34) stands at a staggering 45.5%, significantly higher than the national average of 32.9%.
However, insights from the Labour Market Dynamics in South Africa (LMDSA) 2022 report provide a silver lining.
Young individuals with some work experience are far more likely to secure employment compared to their inexperienced counterparts, with transition rates of 12.3% for youth and 7.4% for adults between quarters.
SASSA SRD Impact & Challenges
Some time back, there were uncertainties around whether the grant will be extended, or increased, depending on the analysis of the economy and other factors.
SASSA SRD R370 grant is a critical arm of South Africa’s social safety net, and will be put under pressure in the coming weeks, due to the escalating unemployment crisis.
Grant applicants can expect further policy adjustments and more application declinations due to the high demand for the grant.
As South Africa continues to navigate these challenging economic waters, the resilience and efficiency of its social security systems remain paramount.
Tackling Unemployment
The government needs to put more emphasis and budget toward recruitment initiatives, such as Nasi Ispani or ESSA Labour, to create opportunities for the youth in the country.
SASSA alone will not manage to support the rising youth unemployment by simply supporting them financially with R370, the reality is that this is not enough for a family to survive in South Africa.
They need to partner and collaborate with public and private sectors to create more equal opportunities for young people, thereby saving millions of rands to support the elderly and veterans of South Africa.
