Using the UIF surplus as part of a stimulus package

The commodity boom and the drought confront South Africa with difficult challenges that require innovative responses. In these circumstances, this briefing note assesses  proposals for using the Unemployment Insurance Fund’s current and accumulated surpluses – currently worth over R100 billion –  to support economic growth without impacting on the sustainability of the fund. It concludes that the benefits strongly outweigh the risks, especially for workers and the unemployed.