There were 45,000 more unemployed people in the Eastern Cape by the end of September compared with June.
This pushed the province’s official unemployment rate up to 36.5%, the highest in SA, from 35.4%.
This was revealed in the third-quarter labour force survey released by Stats SA on Tuesday.
It means there were 805,000 unemployed people between the ages of 15 and 64 in the province at the end of September.
The expanded unemployment rate for the province, which includes discouraged job seekers, is 46%.
Finance and economic development MEC Mlungisi Mvoko said the increase was cause for concern.
“The slight increase in the unemployment rate is an ongoing cause for concern — this is coupled with stagnating economic growth.
“But it is pleasing to observe that a total of 38,000 jobs were created in agriculture alone [nationally], which is a key sector for the Eastern Cape economy.
“It was among the key sectors that resulted in increased employment in [quarter 2].”
The figures for the third quarter, however, point to a decline of about 1,000 jobs in the agriculture sector in the province.
About 15,000 new jobs were created in the province in the manufacturing sector and 14,000 in the construction industry.
But this was offset by the thousands of jobs lost in the transport, finance and community services sectors, among others.
“In the previous quarter, the Eastern Cape unemployment rate dropped to 35.4%.
“Even though that rate was still the highest in the country, most jobs in the country were created in the Eastern Cape,” Mvoko said.
“This slight surge was on the back of serious economic measures put together by the provincial government to stimulate a struggling economy.
“These include a R1bn Provincial Economic Stimulus Fund.
“The fund is scoped on the implementation of catalytic economic development initiatives that grow the economy, enable trade and investment, and boost employment.”
Bobby Stevenson, the DA chief whip in the Bhisho legislature, said the latest statistics pointed to a government with no solution to stem the rising tide of unemployment.
“The hardship of unemployment is wreaking havoc among families across the province, who will struggle to put food on the table, and pay for medication and schooling.
“People are leaving this province in droves, seeking opportunities in other provinces.
“Families should not have to abandon their homes to earn a living,” he said.
“They must be given the opportunity to build their lives, raise their families and put down deep roots in the province of their birth.”
The solution to turn things around, Stevenson said, was to pay suppliers within 30 days to ensure small businesses did not go bankrupt, fix the health and education system, get municipalities back on track and get the infrastructure in the province “up to speed”.
But while the picture for the rest of the country is gloomy, with the national unemployment rate climbing to the highest in more than a decade — at 29.1% — Nelson Mandela Bay had a bit of a reprieve.
The Bay’s unemployment figures shifted slightly from 194,000 between April and June to 190,000 in the next quarter.
The unemployment rate has also improved from 36.4% to 34.9%.
Nelson Mandela Bay Business Chamber CEO Nomkhita Mona said the chamber was encouraged by the improvement in light of the tough economic climate.
“While the picture is gloomy considering unemployment figures nationally have risen to a new worst, we are, however, encouraged by the drop in unemployment figures for the Nelson Mandela Bay region.
“The Bay had 355,000 employed people for the period under review, compared with the same period in 2018, which had a recorded figure of 338,000.
“The business chamber is encouraged by the positive results as they confirm our members’ efforts in creating much-needed jobs in a very tough economic climate.
“However, we are concerned that the economic growth still lags far behind desirable levels.
“We will continue to engage all relevant stakeholders to find innovative ways to address unemployment as part of our long-term strategy around job creation and sustainable economic growth,” Mona said. — Additional reporting by Luyolo Mkentane
Eastern Cape jobless numbers rise
Image: Gallo Images / City Press / Herman Verwey
There were 45,000 more unemployed people in the Eastern Cape by the end of September compared with June.
This pushed the province’s official unemployment rate up to 36.5%, the highest in SA, from 35.4%.
This was revealed in the third-quarter labour force survey released by Stats SA on Tuesday.
It means there were 805,000 unemployed people between the ages of 15 and 64 in the province at the end of September.
The expanded unemployment rate for the province, which includes discouraged job seekers, is 46%.
Finance and economic development MEC Mlungisi Mvoko said the increase was cause for concern.
“The slight increase in the unemployment rate is an ongoing cause for concern — this is coupled with stagnating economic growth.
“But it is pleasing to observe that a total of 38,000 jobs were created in agriculture alone [nationally], which is a key sector for the Eastern Cape economy.
“It was among the key sectors that resulted in increased employment in [quarter 2].”
The figures for the third quarter, however, point to a decline of about 1,000 jobs in the agriculture sector in the province.
About 15,000 new jobs were created in the province in the manufacturing sector and 14,000 in the construction industry.
But this was offset by the thousands of jobs lost in the transport, finance and community services sectors, among others.
“In the previous quarter, the Eastern Cape unemployment rate dropped to 35.4%.
“Even though that rate was still the highest in the country, most jobs in the country were created in the Eastern Cape,” Mvoko said.
“This slight surge was on the back of serious economic measures put together by the provincial government to stimulate a struggling economy.
“These include a R1bn Provincial Economic Stimulus Fund.
“The fund is scoped on the implementation of catalytic economic development initiatives that grow the economy, enable trade and investment, and boost employment.”
Bobby Stevenson, the DA chief whip in the Bhisho legislature, said the latest statistics pointed to a government with no solution to stem the rising tide of unemployment.
“The hardship of unemployment is wreaking havoc among families across the province, who will struggle to put food on the table, and pay for medication and schooling.
“People are leaving this province in droves, seeking opportunities in other provinces.
“Families should not have to abandon their homes to earn a living,” he said.
“They must be given the opportunity to build their lives, raise their families and put down deep roots in the province of their birth.”
The solution to turn things around, Stevenson said, was to pay suppliers within 30 days to ensure small businesses did not go bankrupt, fix the health and education system, get municipalities back on track and get the infrastructure in the province “up to speed”.
But while the picture for the rest of the country is gloomy, with the national unemployment rate climbing to the highest in more than a decade — at 29.1% — Nelson Mandela Bay had a bit of a reprieve.
The Bay’s unemployment figures shifted slightly from 194,000 between April and June to 190,000 in the next quarter.
The unemployment rate has also improved from 36.4% to 34.9%.
Nelson Mandela Bay Business Chamber CEO Nomkhita Mona said the chamber was encouraged by the improvement in light of the tough economic climate.
“While the picture is gloomy considering unemployment figures nationally have risen to a new worst, we are, however, encouraged by the drop in unemployment figures for the Nelson Mandela Bay region.
“The Bay had 355,000 employed people for the period under review, compared with the same period in 2018, which had a recorded figure of 338,000.
“The business chamber is encouraged by the positive results as they confirm our members’ efforts in creating much-needed jobs in a very tough economic climate.
“However, we are concerned that the economic growth still lags far behind desirable levels.
“We will continue to engage all relevant stakeholders to find innovative ways to address unemployment as part of our long-term strategy around job creation and sustainable economic growth,” Mona said. — Additional reporting by Luyolo Mkentane
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