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This means that social grants increases the "reservation wage" of low-income families, thus they become less motivated to earn. This results to a higher unemployment rate.

The impact that the increasing number of social grants may have on the Unemployment rate is:

  • This results to a higher unemployment rate.

What is Unemployment?

This refers to a situation where a person or group of persons are without paid work and there is no labor force they can join and get paid due to limited opportunities.

With this in mind and with the increase in social grants, the unemployment rate is going to be on the increase because the government is essentially feeding and clothing the unemployed so they would be less motivated to find paid work.

Read more about unemployment here:
https://brainly.com/question/13280244

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