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The unemployment rate in the Eastern Cape continues to climb, with the latest figures showing that the province lost 77,000 jobs in the first quarter of 2024.
According to Statistics South Africa, the official unemployment rate was 32.9%, up from 32.1% in the last quarter of 2023.
The number of employed persons increased by 22 000 to 16.7 million in the first quarter of the year compared to the fourth quarter of 2023, while the number of unemployed people increased by 330 000 to 8.2 million during the same quarter.
Stats SA's Dihlolelo Phoshoko said using the expanded definition, the unemployment rate increased by 0.8 of a percentage point to 41.9% in Quarter One.
The official opposition leader in the Eastern Cape Legislature, Bobby Stevenson, said unemployment in the province was rising and any temporary gains have now been wiped out.
"The latest unemployment statistics, for the first quarter of 2024, show that the Eastern Cape lost 77,000 jobs over the months from January to March.
"Unemployment in the province is rising, and any temporary gains have now been wiped out. The province has the worst levels of unemployment in the country on both the official figure, which increased to 42.4%, and the expanded figure of 49.1%," he said.
Stevenson said when one looks at the expanded unemployment figure outside the Nelson Mandela Bay and Buffalo City Metro's the picture is even bleaker, with 57% of the population without work.
According to FNB senior economist, Thanda Sithole, despite the uptick in the unemployment rate, they maintain an outlook for a marginal job increase throughout this year.
"This is supported by our economic growth forecast, which is expected to rise from below 1% last year to 1.2% this year, lifting to 1.5% in 2025 and 1.6% in 2026," he said.
However, Sithole said FNB remained concerned about the structural constraints on growth that have led to economic growth projections significantly lower than the 5.2% average annual growth realised between 2004 and 2007.
"During that period, the unemployment rate trended downward, highlighting the significant differences between past growth rates and current projections.
“Addressing these structural constraints will be critical to achieving sustained economic growth and reducing unemployment rates in the long term," Sithole said.
