Figures are the worst since 2008.
THE Eastern Cape has the highest rate of joblessness in a country where unemployment rates reached levels last seen before the recession in 2008.
The Quarterly Labour Force Survey (QLFS) released by Statistics South Africa (StatsSA) on Tuesday showed that Eastern Cape’s official unemployment rate was 30.6% in the period March to June this year, the third highest of the country’s nine provinces.
A look at the expanded definition of unemployment, which includes those who are no longer actively seeking work, takes the Eastern Cape’s unemployment rate to 44.4% above the average national rate of 35.6%.
In the Eastern Cape, agriculture emerged as the sector worst hit by job losses according to the QLFS.
Eastern Cape Democratic Alliance said the massive decline of agricultural sector employment indicated a failure by government to grow the sector.
“The agricultural sector of our economy is particularly hard hit, with a 17.8% decline in those employed in agriculture in the Eastern Cape. Year-on-year there were 15000 fewer people employed in agriculture. This points to the failure of state-led economic growth initiatives in this critical sector,” said DA shadow MEC for finance Bobby Stevenson.
Stevenson called for the province to cut down on consumption expenditure and ensure that the resources were invested in creating a climate for economic growth.
The increase in unemployment followed a protracted strike that lasted five months in the platinum sector which economist blamed for a contraction in the economy between January and March. Second quarter economic growth rate is yet to be released, but economists have predicted another contraction.
Border-Kei Chamber of Business executive director Les Holbrook said employment had lagged in the Eastern Cape due to a combination of rising costs and general slow-down in the national economy.
“Businesses are suffering from effect of low growth rate. In the Eastern Cape we are not the corporate head office of South Africa and we are the first to feel impact of low growth in major economic hubs. Also in the last two years, Buffalo City Municipality has become one of the most expensive cities in the country and that adds on logistics and utilities costs.
“The costs and regulatory environment have become complicated and people don't want to employ anymore. It’s better to go the informal route.” — siyam@dispatch.co.za
EC unemployment rate reaches 30%
THE Eastern Cape has the highest rate of joblessness in a country where unemployment rates reached levels last seen before the recession in 2008.
The Quarterly Labour Force Survey (QLFS) released by Statistics South Africa (StatsSA) on Tuesday showed that Eastern Cape’s official unemployment rate was 30.6% in the period March to June this year, the third highest of the country’s nine provinces.
A look at the expanded definition of unemployment, which includes those who are no longer actively seeking work, takes the Eastern Cape’s unemployment rate to 44.4% above the average national rate of 35.6%.
In the Eastern Cape, agriculture emerged as the sector worst hit by job losses according to the QLFS.
Eastern Cape Democratic Alliance said the massive decline of agricultural sector employment indicated a failure by government to grow the sector.
“The agricultural sector of our economy is particularly hard hit, with a 17.8% decline in those employed in agriculture in the Eastern Cape. Year-on-year there were 15000 fewer people employed in agriculture. This points to the failure of state-led economic growth initiatives in this critical sector,” said DA shadow MEC for finance Bobby Stevenson.
Stevenson called for the province to cut down on consumption expenditure and ensure that the resources were invested in creating a climate for economic growth.
The increase in unemployment followed a protracted strike that lasted five months in the platinum sector which economist blamed for a contraction in the economy between January and March. Second quarter economic growth rate is yet to be released, but economists have predicted another contraction.
Border-Kei Chamber of Business executive director Les Holbrook said employment had lagged in the Eastern Cape due to a combination of rising costs and general slow-down in the national economy.
“Businesses are suffering from effect of low growth rate. In the Eastern Cape we are not the corporate head office of South Africa and we are the first to feel impact of low growth in major economic hubs. Also in the last two years, Buffalo City Municipality has become one of the most expensive cities in the country and that adds on logistics and utilities costs.
“The costs and regulatory environment have become complicated and people don't want to employ anymore. It’s better to go the informal route.” — siyam@dispatch.co.za
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos