Cheers as Stats SA data shows Western Cape has largest drop in unemployment

Mayor Geordin Hill-Lewis. Picture: Armand Hough African News Agency (ANA)

Mayor Geordin Hill-Lewis. Picture: Armand Hough African News Agency (ANA)

Published Nov 30, 2022

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Cape Town - The City of Cape Town and the Western Cape government are celebrating the latest Quarterly Labour Force Survey (QLFS) which showed the Western Cape as having achieved the largest drop in unemployment nationally.

According to Stats SA, 204 000 jobs were gained in the third quarter of 2022, raising the number of employed persons to 15.8 million.

This resulted in the national unemployment rate decreasing by 1% point from 33.9% to 32.9% in the third quarter.

Mayor Geordin Hill-Lewis said Cape Town’s 3.2% drop in unemployment showed the City’s commitment to economic growth was bearing fruit

“I believe this shows the effects of good governance in Cape Town and the City’s commitment to securing the conditions for economic growth. This is the largest quarterly decrease in unemployment in the country.”

Mayco member for economic growth James Vos said that the decrease in the unemployment levels from 642 000 people to 564 000 individuals was the largest percentage drop of all the metros.

“The number of employed Capetonians increased by 41 000 to 1 539 000. Simultaneously, Cape Town’s unemployment rate on the broad definition remains the lowest of all the metros at 29.5%.”

Finance and Economic Opportunities MEC Mireille Wenger said she was delighted by the news that 85 000 jobs were created across the province.

“After a difficult two years for our province and country, this is certainly heart-warming news. A job provides dignity and self-agency, breaking the cycle of poverty. Employment creates opportunity and hope for many families across the province,” Wenger said.

However, not everybody was as buoyed up by the statistics. Anchor Capital Investment Analyst Casey Delport said that while any drop in South Africa’s unemployment rate would usually be a cause for celebration, the country’s economy continued to grow at less than 2% a year.

“Thus, the SA economy is simply not growing at an adequate rate to sustainably boost long-term employment prospects for South Africans.”

Trade union UASA spokesperson Abigail Moyo said the official unemployment rate decrease of 1% was a drop in the ocean.

She said the youth unemployment rate was dire and national government had repeatedly failed the country’s 4.6 million jobless young workers.

“Thousands of young people graduate from higher institutions of learning and TVET colleges each year, but unemployment remains unaddressed with no actionable plans in sight.”