Unemployment has surged to a staggering 47.5% in the Eastern Cape — the highest in the country, with the province shedding 116,000 jobs over the past year.
This comes as Nelson Mandela Bay’s unemployment rate climbed to 33.1% in the second quarter of 2026.
The figures, released by Stats SA on Tuesday, show the province’s unemployment rate climbing from 44.6% in the first quarter to 47.5% in the second.
This happened despite the number of employed people in the province having increased by 13,000 over the same period because that modest gain was wiped out by a surge in the number of people entering the job market, with the Eastern Cape’s labour force growing by a massive 160,000 to reach 2.565-million.
Meanwhile, the Bay recorded 371,000 employed people in the second quarter — 7,000 more than the first quarter, but 49,000 fewer than the same period last year.
Buffalo City’s unemployment rate increased to 30.5% in the second quarter from 28.7% in the previous one.
The figures have put renewed pressure on the provincial government to turn around an economy which has been battered by weak growth, job losses and mounting strain on key industries.
Premier Oscar Mabuyane conceded that unemployment remained the biggest challenge in the province, citing difficulties in the automotive sector.
“Unemployment reflects the challenges of development,” Mabuyane said.
“We’ve been hit hard by the problems facing the automotive sector, which has been the backbone of our province.
“A lot of our economic improvement has traditionally come from that sector.”
He said the services sector kept the ship floating.
“We welcome the improvement in new jobs, though relatively small comparatively speaking.”
However, he said this did not resolve the issue.
“The work we’re doing to mobilise investors and bring investment into our province is exactly what we need,” Mabuyane said.
“The government must spend on goods and services.
“If we can perform better as government, we will be able to create a more conducive environment for the private sector to get on board.”
He referred to the challenge of delays in government procurement.
“Even when we want to fill vacant, funded posts, government departments are still experiencing delays.
“We need an optimally functioning ecosystem, from local municipalities through to national government.”
He said slow economic growth, companies battling to create jobs and geopolitical pressures had contributed to the crisis.
Mabuyane pointed to investment projects in the pipeline as potential sources of future jobs, including nuclear and gas-to-power explorations.
“We’ve got to push them.
“I’m optimistic that with time we will.”
DA MPL Andrew Whitfield said the province urgently needed to get municipalities working so they could attract investment.
He said the latest figures exposed the depth of the crisis.
“The unemployment rate increased even though the number of employed people grew by 13,000 from the first quarter, because the Eastern Cape’s labour force expanded by 160,000 people, from 2.405-million to 2.565-million,” Whitfield said.
“The latest figures suggest large numbers of Eastern Cape residents who were previously outside the active labour force began actively looking for work but the economy simply could not absorb them.”
Whitfield said the province did not have a shortage of people willing to work but rather a shortage of jobs, investment and functioning local economies capable of creating opportunity.
“These figures cannot be separated from the province’s continuing migration crisis.
“People move where they believe they can find jobs and functioning communities.”
He said working municipalities attracted investment.
“If we want to reverse unemployment and migration, we must start by getting our municipalities working for all.
“That means reliable water and electricity, maintained roads and infrastructure, efficient planning systems, responsible financial management and professional municipal administrations that make it easier, rather than harder, to do business.”
Municipal spokesperson Sithembiso Soyaya said the latest figures were an important measure of the economic conditions facing the city and a clear reminder of the scale of work still required to expand opportunities and employment.
“These numbers matter because behind every statistic is a resident, a household and a community whose economic prospects are directly affected,” Soyaya said.
“The municipality views the employment challenge with the seriousness and urgency it deserves.”
He said the Bay had significant economic assets and strategic advantages.
“The priority for all role players is to convert potential into investment, enterprise growth, skills development and, ultimately, more sustainable jobs.
“Municipal government has an important role.
“This includes improving the reliability and efficiency of municipal services and infrastructure, supporting local economic development, facilitating investment, strengthening opportunities for small and emerging businesses and ensuring the city’s development pipeline contributes to broader economic participation.”
Soyaya said the figures highlighted the need for sustained collaboration between government, business, organised labour, educational institutions and civil society.
“No single institution can unlock the full economic potential of the Bay alone,” he said.
“The scale of the employment challenge demands a common economic agenda and co-ordinated action around investment, infrastructure, skills, enterprise development and job creation.”
Nelson Mandela Bay Business Chamber acting chief executive Ashwin Daya said the latest figures were a stark reminder that economic growth must translate into meaningful opportunities for locals.
“More concerning, the number of unemployed people in the province actively looking for work has increased, while employment is lower than a year ago,” Daya said.
“These figures cannot simply be viewed as a labour market statistic.
“Behind the 47.5% unemployment rate are more than one-million people who want to participate meaningfully in the economy, earn an income and build better lives for their families.”
Particularly concerning, Daya said, was that employment was not being generated at the pace required to absorb people entering the labour market.
“Eastern Cape towns and cities need to strengthen the conditions for investment, enterprise growth and job creation.”
Daya said the Bay was also feeling the pressure.
Compared with the previous quarter and year-on-year data, he said the number of unemployed people rose to about 183,000, while employment declined by 49,000 year on year.
“These figures reinforce why economic development cannot be treated as a secondary priority.
“Investment attraction, reliable infrastructure, efficient logistics, skills development and a competitive business environment are essential to creating the conditions in which businesses can grow and employ more people.”
Daya said the Bay had significant economic assets, including its manufacturing and automotive base, port and logistics infrastructure and industrial development opportunities.
The priority needed to be to convert assets into a stronger pipeline of investment, business expansion and sustainable jobs.
“The Eastern Cape cannot afford to normalise unemployment at these levels,” Daya said.
“We need a concerted effort across government, business and other stakeholders to remove the barriers that prevent investment and expansion.
“Training people without connecting skills to real economic opportunities will not solve the unemployment crisis.
“Our skills pipeline must be aligned to the jobs and industries of the future.”
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