The Western Cape continues to outperform the rest of the country when it comes to jobs.
The latest figures show unemployment in the province stands at 19.5% compared to 33.6% nationally.
The number of jobs in the Western Cape also went up by 91,000 over the past year, while South Africa lost about 68,000.
So what is the province doing differently?
Speaking to John Maytham, Bureau for Economic Research chief economist Lizette De Schepper said there was no single reason for the Western Cape’s better numbers.
However, as a starting point, she said history played a role.
“The Western Cape did not inherit a formal homeland territory within its boundaries. I mean, several other provinces had large, marginalised homeland economies, so I think we had an important initial advantage.”
But she said that did not explain everything since there was still major inequality in Cape Town and a large divide between wealthy and poorer areas.
De Schepper acknowledged that governance played a role but warned against giving the DA government all the credit.
“It probably made a difference, but I don’t think you can attribute sort of a 14% employment gap entirely just to policy.”
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One of the biggest reasons for the Western Cape’s success could be something of a self-fulfilling prophecy, suggested De Schepper.
Almost half of South Africa’s net job growth over the past ten years has happened in the Western Cape.
“Firms attract firms, businesses attract business, so people go where the jobs are. So, there is something happening that is not happening in the other provinces.”
De Schepper said the province was creating jobs for many of those who come to the Western Cape, rather than simply attracting people who could not find work.
“The jobs are here, and that creates opportunities.”
De Schepper said there was no magic Western Cape job-creation formula.
Instead, she said governments needed to focus on getting the basics right which included reliable services and also creating an environment where businesses felt confident investing.
“If you start getting the basics right, the businesses will come, and if the businesses come, the jobs come.”
She said the Western Cape currently remained a more attractive place to do business, but warned that its advantage could not be taken for granted.
“It’s not to say that this can continue indefinitely.”
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Sara-Jayne Makwala King
www.ewn.co.za