Fall may be good news for job losses in SA.
THE number of claimants for unemployment insurance benefits fell in the first half of this year compared with a year earlier – suggesting the economy is not shedding as many jobs as previously thought‚ Unemployment Insurance Fund (UIF) head Boas Seruwe has said.
Seruwe said the decline in the number of claimants was also due to tighter monitoring and processing of applications to clamp down on fraud.
Despite the improvement‚ the number of claims remains high‚ reflecting the weak growth of the local economy.
The economy grew 1.3% in the first six months of this year compared with the same period last year due to slow domestic and global demand‚ and production stoppages because of strikes.
About 404000 people claimed for unemployment insurance between January and July this year‚ compared with 455000 over the same period last year.
The number of claimants is estimated at between 50000 and 60000 a month. Seruwe said this was positive news.
“People are getting into jobs and we believe companies are not shedding as many jobs as it has been perceived to be the situation‚” Seruwe said.
Statistics SA data show that although job losses were still reported in the second quarter of this year‚ the economy also created 39000 jobs over the period‚ mainly in private households and the informal sector.
While the number of claimants fell‚ the value of claims increased as the fund raised the income ceiling.
The fund paid out R4.2-billion in claims between January and July – about R400-million more than the same period last year.
“If we do not increase the ceiling it means we are not going to pay people higher benefits. So we increase it to get more income but also to pay people more at a higher scale‚” Seruwe said.
Like several other government agencies‚ the UIF’s main challenges included non-compliance by employers‚ particularly small businesses.
South African Chamber of Commerce and Industry senior policy consultant Pietman Roos said some smaller businesses probably did not comply because of “administrative complexities”.
“It is quite possible that many smaller businesses find the paperwork associated with UIF daunting because they either do not have the skills‚ resources or time to fully familiarise themselves with the reporting and requirements‚” Roos said.
Seruwe said‚ however‚ that the fund had done a lot to make compliance easier over the past few years‚ including improving online submission processes. — BDLive
UIF claims decrease slightly
THE number of claimants for unemployment insurance benefits fell in the first half of this year compared with a year earlier – suggesting the economy is not shedding as many jobs as previously thought‚ Unemployment Insurance Fund (UIF) head Boas Seruwe has said.
Seruwe said the decline in the number of claimants was also due to tighter monitoring and processing of applications to clamp down on fraud.
Despite the improvement‚ the number of claims remains high‚ reflecting the weak growth of the local economy.
The economy grew 1.3% in the first six months of this year compared with the same period last year due to slow domestic and global demand‚ and production stoppages because of strikes.
About 404000 people claimed for unemployment insurance between January and July this year‚ compared with 455000 over the same period last year.
The number of claimants is estimated at between 50000 and 60000 a month. Seruwe said this was positive news.
“People are getting into jobs and we believe companies are not shedding as many jobs as it has been perceived to be the situation‚” Seruwe said.
Statistics SA data show that although job losses were still reported in the second quarter of this year‚ the economy also created 39000 jobs over the period‚ mainly in private households and the informal sector.
While the number of claimants fell‚ the value of claims increased as the fund raised the income ceiling.
The fund paid out R4.2-billion in claims between January and July – about R400-million more than the same period last year.
“If we do not increase the ceiling it means we are not going to pay people higher benefits. So we increase it to get more income but also to pay people more at a higher scale‚” Seruwe said.
Like several other government agencies‚ the UIF’s main challenges included non-compliance by employers‚ particularly small businesses.
South African Chamber of Commerce and Industry senior policy consultant Pietman Roos said some smaller businesses probably did not comply because of “administrative complexities”.
“It is quite possible that many smaller businesses find the paperwork associated with UIF daunting because they either do not have the skills‚ resources or time to fully familiarise themselves with the reporting and requirements‚” Roos said.
Seruwe said‚ however‚ that the fund had done a lot to make compliance easier over the past few years‚ including improving online submission processes. — BDLive
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