The role of the unemployment insurance fund in poverty alleviation in South Africa

Abstract

This study examined the role of the Unemployment Insurance Fund in poverty alleviation in South Africa, exploring its impact, challenges, and potential areas for improvement. In the early 1940s, South Africa did not have an arranged or planned social and economic system to support unemployed individuals. During the early 1946 regime, unemployed individuals suffered as there were few government interventions, and charitable organisations were not persistent in helping them. The Unemployment Insurance Act No.30 was introduced in 1946, and it was the first official and formal legislation to help the unemployed in South Africa. The Unemployment Insurance Act helped the unemployed financially, although it was a short-term relief. This is because the Act aimed to help the unemployed temporarily while they were looking for another job. Although the target and aim of UIF was to financially assist the unemployed in South Africa, poverty as a socio-economic issue has remained a challenge in the country. This is because poverty has impacted the quality of life for certain people and has affected millions of citizens. This research aims to investigate and examine the role of the Unemployment Insurance Fund (UIF) in alleviating poverty in South Africa. The outcomes are expected to provide reliable and valid data on the effectiveness of UIF as a measure to alleviate poverty in South Africa. The researcher used the qualitative method as it has the advantage of producing clear data that can be easily understood. The qualitative method was used to collect data on examining the impact of the UIF payments on poverty alleviation upon job losses in South Africa, its extent it fulfils its role in poverty alleviation, and to identify recommendations for the implementation and disbursement of UIF payments towards poverty alleviation and financial relief strains upon job losses in South Africa. The research findings can help the government to design and implement more effective policies regarding unemployment. The findings from the study helped with recommendations to reduce poverty and assist the unemployed. The research findings provided intuitive apprehension of the establishment of UIF in South Africa.