With all indications pointing to world markets moving out of the recessionary slump, the Unemployment Insurance Fund (UIF) paints a different picture as it braces itself for even more claims. In the financial year ending March 31 claims rose 48% to R5.7bn.

According to the UIF’s Annual Report there has been a year-on-year increase of 173000 claims. Boas Seruwe, UIF Commissioner explained that claims had tapered between March and June, but had then shot up again in July. He said that this could partially be explained by the retrenchment of 27000 construction employees after the conclusion of the world cup.
The fund receives almost R900m in employer and employee contributions and yields R350m per month on its R48bn investments. The funds income from investments has increased by 3% from R3.34bn to R3.35bn in the last year.

As a result of the doubling of claims in the last financial year, the funds surplus has fallen from R9.08bn to R6.75bn.

These figures leave one questioning what kind of legacy the World Cup has left behind for the working class South African.
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