The latest data released by the Stats SA’s latest Quarterly Labour Force Survey (QLFS) today for the second quarter of 2021 reflects concerning job losses of 66 000 in the Eastern Cape compared to the jobs gain of 65 000 in the previous quarter of this year.
South Africa’s official unemployment rate has surged to a record 34.4% as the formal sector shed jobs. Nationally, job losses in the second quarter were largely in the finance sector, which reported a loss of 278 000 jobs, while community and social services lost 166 000 jobs and the manufacturing sector lost 83 000 jobs. A notable increase has been in the construction sector, with 143 000 new jobs recorded. Two other sectors that recorded employment gains include trade with 108 000 and agriculture with 69 000 respectively.
The province has again recorded the highest unemployment rate of 47,1% in the country, followed by the Free State at 35% and Gauteng at 34%.
Nelson Mandela Bay recorded 3000 job losses during the second quarter, a disappointing outcome considering the already high unemployment rate for the Metro. The latest figures should serve as a wake-up call on the urgent need for an investor friendly environment to be in place in order to retain and attract investment, and as such create much needed jobs, said Denise van Huyssteen, the CEO of the Nelson Mandela Bay Business Chamber.
“With the city facing many challenges such as a very serious water crisis and ongoing power dips and outages, these pose huge hurdles for promoting Mandela Bay as a preferred investment destination of choice. Furthermore, these types of challenges create an environment of unease for existing investors as they need to operate in a stable economic and political environment, where predictable and reliable essential services are provided.”
“The general state of infrastructure, the lack of maintenance and the limited capital expenditure available to support infrastructure projects in the Metro is a matter of concern. Equally important to ensuring that an enabling environment is in place, is the need for implementing a long-term economic development strategy for the city. This needs to allow for a greater diversification of our economy and should also be tailored around promoting the growth of entrepreneurship.
“We also cannot ignore the impact covid-19 has had on our economy and in particular on sectors such as tourism, hospitality and eventing. Key to economic revival and controlling the impact the virus has on our economy, will be the acceleration of the vaccination process.”
Issued by:
Sibongile Dimbaza
Media and Publications Officer
0833718708