Özet:

This paper articulates on the challenges of unemployment in Butterworth, a town in the Eastern Cape, South Africa. The objectives of the study were to investigate psychological, social and economic challenges of unemployment respectively. Keynisian theory was used to explain the unemployment situation in the study area. The study made use of quantitative approach, where 80 respondents were drawn from the target population through a stratified sampling technique. Data collected from survey (questionnaire) were analysed with appropriate tools in the Statistics Package for Social Sciences. Demographically, the majority of the sample were females, people between the ages of 18-23, all of African race, were never married, had a diploma, were unemployed for more than three years and said they had not look for work in three weeks. The most prevalent feeling by the unemployed was disappointment and frustration, which according to them led them to engage in anti-social behaviour, especially being dishonest in many occasions and use of alcohol. The biggest social challenge among them include, not getting the expected support from family and friends. They face many economic challenges, in which they are unable and sometimes struggle to have money to apply for jobs or buy clothes. This study made recommendations on how to overcome the challenges of unemployment in the study area

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