The official unemployment rate, though very high by international standards, understates its magnitude because it includes only adults who are actively looking for work. Therefore, excluding those who have given up looking for employment. Only 41% of the population of working age have any kind of job (formal or informal). This rate is 30% points lower than that of China, and about 25% lower than that of Brazil or Indonesia. The relatively generous social grants reduces the political cost of unemployment. There is some evidence that households view paid employment and social grants as substitutes at the margin: households that lose a pension-eligible member subsequently report increased labour force participation.