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Eastern Cape Premier Oscar Mabuyane has welcomed the creation of 13 000 jobs in the province over the past quarter but acknowledged that unemployment remains a “serious challenge” as the provincial rate climbs to 47.5%.
The latest Quarterly Labour Force Survey, released by Statistics South Africa on Tuesday, shows the Eastern Cape’s official unemployment rate increased from 44.6% in the first quarter of 2026 to 47.5% in the second quarter, the highest rate in the country.
Mabuyane said the increase in employment was encouraging, but not enough to offset the large number of people entering the labour market.
“We welcome the improvement on new jobs that have been created by creating about 13 000,” Mabuyane said.
“Yes, still relatively small, comparatively speaking. And that’s why it doesn’t help us to solve the challenge of unemployment rate increase.”
The province’s labour force grew by 160 000 people between the first and second quarters, while employment increased by 13 000.
Mabuyane points to economic headwinds
Mabuyane said the province’s economic performance had been affected by slow growth, population growth and difficulties in key sectors, particularly the automotive industry.
“We’ve been hit hard by the challenge of the auto sector that has been experiencing a lot of problems,” Mabuyane said.
“The auto sector has been our backbone in the province, and a lot of improvement has always been coming from that.”
He said government, business and other stakeholders needed to work together to create an environment that attracts investment and supports job creation.
Mabuyane said government must also improve its own performance, including speeding up procurement and filling funded vacant posts.
“We need an optimal functioning ecosystem from the local municipality up to the province that works in a smooth way,” he said.
He said major catalytic projects could play an important role in changing the province’s economic fortunes, including proposed nuclear and LNG gas-to-power projects.
“If those projects can actually successfully take off, I can tell you, you will see a serious decline in our province,” he said.
Mabuyane said the province remained optimistic despite the scale of the challenge.
“We are currently moving the needle. We might not be moving the needle aggressively to address the immediate problem that we have,” he said.
“We are grappling with this challenge. It’s a serious challenge that we are all feeling it and experiencing it.”
DA says province needs investment and functioning municipalities
The latest figures have drawn sharp criticism from the opposition.
DA Eastern Cape leader Andrew Whitfield said the figures exposed the depth of the province’s economic crisis, with the province having shed 116 000 jobs over the past year.
He said unemployment had risen from 39.5% a year ago to 47.5%.
Whitfield said the province did not lack people willing to work but lacked sufficient investment and functioning local economies capable of creating jobs.
He said the DA would ask the Eastern Cape Legislature to hold a debate on a matter of public importance focused on the province’s migration and economic decline.
Whitfield said getting municipalities to function effectively should be treated as an economic imperative, with reliable services, infrastructure, planning systems and sound financial management needed to attract investment.
National jobs crisis adds to concern
The provincial figures come against a worsening national employment picture.
Build One South Africa said 6.2 million young people and 6.3 million women were unemployed, with the expanded national unemployment rate reaching 43.8%.
BOSA Communications Director Graham Charters said the figures highlighted the failure to provide meaningful economic opportunities for young people and women.
He said South Africa needed sustained economic growth, lower barriers to doing business, support for entrepreneurs and small businesses, and increased investment to create jobs.
Meanwhile ActionSA said manufacturing had shed 100 000 jobs over the past year and called on President Cyril Ramaphosa to replace the ministers responsible for employment, economic growth, trade, industry and small business development.
The party said economic growth and employment should be the central test of the Government of National Unity’s performance, arguing that South Africa needed a government focused on creating jobs, supporting businesses and attracting investment.
Sandy McCowen
www.algoafm.co.za