The Eastern Cape has recorded the highest unemployment in SA again, increasing to a massive 41.9%.
The Stats SA quarterly labour force survey was released on Tuesday, covering October to December.
The Eastern Cape saw a 3.1 percentage point increase compared with the previous quarter.
The official unemployment rate increased in six provinces.
Overall, SA’s official unemployment rate increased 0.2 of a percentage point from 31.9% in the third quarter to 32.1% in the fourth quarter.
This indicates the persistent volatility in the country’s economic activity and lacklustre business confidence, which are likely to impede progress towards employment targets.
The industries that contributed to the net employment decline include the community and social services sector, which lost 171,000 jobs.
Construction was also down by 36,000 jobs.
Agriculture fell by 35,000 jobs, while trade and manufacturing fell by 28,000 and 1,000, respectively.
Statistician-general Risenga Maluleke said the number of unemployed people had increased by 46,000 to 7.9-million in the last quarter of 2023.
“Additionally, the number of people who were not economically active for reasons other than discouragement increased by 218,000 to 13.4-million, while discouraged work-seekers decreased by 107,000 in the fourth quarter of 2023 compared to the third quarter of 2023.
“This resulted in a net increase of 111,000 in the not economically active population,” he said.
The unemployment rate in Nelson Mandela Bay increased by 1.9 percentage points to 33.9% compared with the third quarter.
In the Eastern Cape, job losses were experienced in agriculture, manufacturing, finance, community and social services, as well as private households.
Increases were seen in construction, transport, trade and mining, while utilities remained stagnant.
Nelson Mandela Bay Business Chamber chief executive Denise van Huyssteen said the survey highlighted the scale of the country’s unemployment crisis.
She said the metro’s unemployment rate increase was unsustainable and pointed to pressure on the local economy as a result of factors ranging from load-shedding to a logistics crisis.
“This aligns with the chamber surveys that were undertaken among locally-based businesses in the third quarter of 2023 which, among other areas, looked into the anticipated impacts of these issues on employment in the coming quarter.
“Just under 30% of these manufacturers anticipated that they would have to retrench employees.”
Van Huyssteen said in the last quarter of 2023 the logistics crisis had escalated further, compounding the challenges faced by importers and exporters in the Bay.
“Key to improving the employment rate is the adoption of urgency and action in addressing the country’s logistics issues by way of improving efficiencies at the country’s ports and getting the Gauteng to the Bay rail corridor functional again.
“To retain and attract investment and employment in our metro, it is vital that an enabling environment is in place, especially in terms of efficient logistics and reliable power, while ensuring ongoing critical investment and maintenance of electricity, water and sanitation infrastructure,” she said.
Eastern Cape premier Oscar Mabuyane said though he had not seen the survey he had been told about the increase in the unemployment rate.
“I will be able to provide a proper comment once I know which sectors contributed to the decline,” he said.
“But as you know the issue of reducing the unemployment rate is an ongoing battle and our investment and trade promotion programme are about ensuring we recreate sustainable jobs.”
Mabuyane said only with investment and the operation of factories would a significant decrease in unemployment be seen.
DA MPL Bobby Stevenson said the recent gains in reducing unemployment in the Eastern Cape had been wiped out in a devastating fourth quarter.
“Millions of residents are suffering the worst cost-of-living crisis in our recent history.
“Hundreds of thousands are suffering hunger, particularly vulnerable children, while businesses continue to bear the brunt of rolling blackouts, which cost jobs.”
He said job-shedding, load-shedding and water-shedding did not need to be a daily occurrence.
“In the Eastern Cape, we need to establish the foundations of sustainable economic growth that creates jobs.
“We need to create the right conditions for the private sector to flourish.
“This means fixing our crumbling electricity and sewerage networks through partnerships with the private sector.
“It means ending rolling blackouts by allowing municipalities and industries to generate electricity in large quantities.”
HeraldLIVE
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