Eastern Cape jobless rate highest in country at 42.4%

The unemployment rate in the Eastern Cape increased in the first quarter of 2024, reaching 42.4%.

Unemployment continues to increase in the Eastern Cape and SA
Unemployment continues to increase in the Eastern Cape and SA (FILE)

The unemployment rate in the Eastern Cape increased in the first quarter of 2024, reaching 42.4%.

This is a 0.5 percentage point increase compared with the previous quarter which ran from October to December.

The quarterly labour force survey was released on Tuesday by Stats SA.

It covered January to March.

This means the Eastern Cape still has the highest unemployment in SA.

The provincial expanded unemployment rate is 49.1% for the first quarter of 2024, up from 47.1% in the last quarter of 2023. 

In the Eastern Cape, job losses were experienced in manufacturing, construction, community and social services, and private households.

Gains were made in agriculture, construction, trade, transport and finance. 

The unemployment rate in Nelson Mandela Bay dropped by 1.5 percentage points to 32.4% compared with the previous quarter.

SA’s unemployment rate increased from 32.1% in the last quarter of 2023 to 32.9% in the first quarter of 2024.

The unemployment rate, according to the expanded definition, also increased by 0.8 of a percentage point to 41.9% in the first quarter of the year.

The data spells bad news for the governing ANC as it faces its toughest election yet, with several polls indicating its support could fall below 50% for the first time since 1994.

This is as the unemployment scourge has become a key electioneering theme among opposition parties ahead of the general election on May 29.

During a media briefing, statistician-general Risenga Maluleke stressed, however, that the release of the data was not in any way aimed at influencing the upcoming elections.

The data shows the number of unemployed people increased from 7.9-million to 8.2-million during the period under review, and the number of employed people remained unchanged at 16.7-million.

SA has a population of about 62-million. 

Nelson Mandela Bay Business Chamber chief executive Denise van Huyssteen said the results indicated a slight improvement for Nelson Mandela Bay, with a decrease from 33.9% in the last quarter of 2023 to 32.4% in the first quarter of 2024.

“Similarly, the number of unemployed individuals has dropped from 167,000 to 166,000.

“Additionally, the labour force participation rate has seen a marginal increase of 0.1 of a percentage point to 51.4%, though the absorption rate has decreased by 0.2 of a percentage point to 29.6%. 

“These levels of unemployment remain unacceptably high, and while we acknowledge a slight decline, it is too soon to determine whether this is a trend that will continue.

“The reality is that an enabling environment is required for business to sustain and create new employment.

“Significant structural challenges remain a huge concern, notably in the logistics arena where, while some progress has been made in this regard, there is still a long way to go to achieve the desired productivity levels.

“Additional areas where accelerated improvement is required include safety and security, electricity infrastructure and, in particular, unplanned power outages, water and sanitation infrastructure, roads and general cleanliness.”

Eastern Cape premier Oscar Mabuyane's spokesperson Yanga Funani said the premier had noted the results from the survey.

"We are still studying it sector by sector. However, fighting unemployment is a contentious struggle," he said.

"That is why the province is on a drive to attract investment.

"That investment drive netted over R171bn for the Eastern Cape economy and has resulted in thousands of jobs being created." 

DA MPL Bobby Stevenson said unemployment continued to blaze through the Eastern Cape, decimating job  hopes.

“The hopes and dreams of our people, particularly the youth, are simply going up in smoke.”

He said the unemployment statistics showed the Eastern Cape had lost 77,000 jobs from January to March.

“Unemployment in the province is rising, and temporary gains have now been wiped out.

“The province has the worst levels of unemployment in the country on both the official figure, which increased to 42.4%, and the expanded figure of 49.1%.

“When you look at the expanded unemployment figure outside the Nelson Mandela Bay and Buffalo City metros the picture is even bleaker, with 57% of the population without work.

“These latest figures simply extend the nightmare of shattered dreams and opportunities that the people of this province long for — it does not have to be like this.”

HeraldLIVE


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