15-05-2025
Unemployment crisis must be tackled urgently by provincial government
The Eastern Cape is bleeding jobs. More than 83,000 people lost their jobs in the first three months of 2025.
But that is not only 83,000 jobs, it is 83,000 families.
Most of them are probably the families' breadwinners.
The official unemployment rate has soared to 39.3%, while the expanded definition, which includes discouraged jobseekers, has hit an alarming 49%.
This is not a blip or seasonal dip. It should be seen as a warning.
The hardest-hit sectors — trade, private households, agriculture, manufacturing and construction — historically provided large-scale employment, especially for lower-skilled and rural workers.
The modest gains in finance, transport and social services, while welcome, are too narrow to offset the damage.
Economists repeatedly call for stimulating small businesses and investment by cutting red tape.
But as Nelson Mandela University emeritus professor Charles Wait said, it just does not happen.
The provincial government has acknowledged the crisis and pointed to plans on skills development, youth employment and strategic sectors like the oceans economy and agriculture.
While the provincial government says the current statistics are a setback, it wants to build a more inclusive, dynamic and resilient economy.
While commendable, it is insufficient and will take years to have a proper effect.
The government can have all the plans and a lofty vision, but businesses need a crime-free environment with no infrastructure issues relating to water, sanitation and electricity.
Without these, a business will not thrive.
Instead, the economy is throttled by logistics inefficiencies and frequent infrastructure breakdowns.
The province needs urgent, practical reforms.
Accelerate logistics overhauls, fix infrastructure and restore public safety.
Local governments — particularly metros and district municipalities — have to be well-run.
When they fail, the economy falters.
This is clear in Nelson Mandela Bay, where the manufacturing sector is hurting from failing basic services.
How do you talk about job creation while businesses deal with potholes, load-shedding, cable theft, dry taps and constant water leaks?
It makes no sense. The provincial government should focus on municipalities and ensure they supply the basics.
From there, positive changes will come.
The Herald
