Question

Impact that the increasing number of social grants may have on unemployment rate​

Answer 1

Answer:

Social grants can encourage the population not to look for a job and thus increase unemployment rates.

Explanation:

Social grants allow people to receive financial aid from the government. This can cause a certain "inertia" of the population in relation to jobs that require greater physical effort and wages equivalent to the amount provided by social grants. These jobs are mainly those related to agriculture, cleaning and factories, among others.

This causes a very large labor shortage that impacts the entire industrial sector and promotes an increase in the unemployment rate, even if there are job openings.