1. Introduction
Unemployment in the country is not just a situation where an individual is able to work and available for the job market but is unable to find a job, it involves a number of factors being affected such as the economic growth of a country and the continuous raise in prices due to inflation. With the negative impact that unemployment has on the economy of the country it will lead to stagflation which will cause a situation where the inflation rate is high and the economic rate grows at a low pace while the unemployment rate will increase in South Africa.
Based on our investigations the assignment will cover the concepts related to unemployment. Firstly the literature review will consist of a discussion of unemployment and the different types of unemployment, as well as its causes with its costs thereof. This will be followed by the critical analysis of unemployment and its link to inflation and the economic growth is analysed. This analysis will show how it leads to stagflation. An evaluation of the effects of unemployment on the economy as a whole can then be conducted. Recommendations will be indicated on how the government can develop further strategies to improve the country’s economy. Lastly, a conclusion is provided to summarise the text.
2. Literature review

Dornbusch and Fischer (1987:306) describe unemployment as an unemployed individual who simply wants to work but cannot find a job. Looking at the current economic status of the country one can