The latest unemployment figures for the Eastern Cape are a stark reminder that economic growth must translate into meaningful employment opportunities for the province’s people.
According to Statistics South Africa’s latest Quarterly Labour Force Survey, the Eastern Cape’s unemployment rate increased to 47.5% in the second quarter of 2026, from 44.6% in the first quarter and 39.5% a year ago. This represents a 2.9 percentage-point quarterly increase and an alarming 8 percentage-point increase year-on-year, the largest annual increase among the provinces.
More concerning, the number of unemployed people in the province that are actively looking for work has increased by 147,000 in a single quarter to 1.219 million, while employment is 116,000 lower than a year ago.
“These figures cannot simply be viewed as a labour-market statistic. Behind the 47.5% unemployment rate are more than a million people who want to participate meaningfully in the economy, earn an income and build better lives for themselves and their families,” says Ashwin Daya, Acting CEO of the Nelson Mandela Bay Business Chamber.
“What is particularly concerning is that employment is not being generated at the pace required to absorb people entering the labour market. The Eastern Cape and its towns and cities need to strengthen the conditions for investment, enterprise growth and job creation.”
Nelson Mandela Bay is also feeling the pressure, with unemployment increasing to 33.1% in Q2 2026, from 29.8% in the previous quarter and 26.4% a year earlier. The number of unemployed people rose to approximately 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 and enabling business environment are essential to creating the conditions in which businesses can grow and employ more people,” says Daya.
Nelson Mandela Bay has significant economic assets, including its manufacturing and automotive base, port and logistics infrastructure and industrial development opportunities. The priority must be to convert these assets into a stronger pipeline of investment, business expansion and sustainable jobs.
“The Eastern Cape cannot afford to normalise unemployment at these levels. We need a concerted effort across government, business and other stakeholders to remove the barriers that prevent investment and expansion,” says Daya.
This must include accelerating projects, improving essential infrastructure, unlocking investment opportunities and making it easier for businesses, particularly small and growing enterprises, to establish, operate and expand.
He added that skills development must also be more closely aligned with areas of genuine economic opportunity.
“Our skills pipeline must be aligned with the jobs and industries of the future if we are serious about creating pathways into employment.”
#ResurgeTheBay
Issued by:
Sibongile Dimbaza
Communications Officer