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Urgent reforms needed to break unemployment’s grip on Eastern Cape

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Dear Editor

Urgent reforms are needed to break the grip of unemployment on the Eastern Cape, with the latest statistics, released today, showing that the province once again has the highest unemployment rate in the country. The Quarterly Labour Force Statistics for the third quarter, from July to September, show that despite new job creation compared to the previous quarter, Eastern Cape was the only province to register a year-on-year employment decline, with a loss of 7,000 jobs compared to the same period in 2023.

For the people of the Eastern Cape, persistently high unemployment has become a devastating reality, stripping countless families of security and hope. Every missed opportunity to find work is more than a statistic—it represents a parent unable to provide basic necessities, a young person whose dreams are sidelined, and communities where despair has taken the place of ambition.

Outside of the Metros, the impact of persistent unemployment, where the expanded rate of unemployment for this quarter is a staggering 56.6%, is devastating. Families are stretched to their limits, with each unemployed member adding to the burden of those who have managed to hold on to jobs in an unforgiving economy.

Eskom’s proposed 40% electricity tariff hike couldn’t come at a worse time, with families already buckling under the weight of a severe cost-of-living crisis. This increase will push millions of South Africans to make an impossible choice between keeping the lights on and putting food on the table. The people of our province deserve more than subsistence. They deserve the dignity and empowerment that comes with a fair chance to work and contribute to a better future.

From a national perspective, we’re encouraged to see some ‘green shoots’ in the latest job numbers, but accelerating economic reform is essential for sustained growth. DA policies such as partnering with the private sector to boost investment, implementing bold structural reforms, opening freight rail to private access, and addressing service delivery issues in local government are gaining traction at a national level and can impact provincially. Construction alone added 176,000 jobs nationally last quarter, highlighting the potential for targeted reforms to drive economic stimulation across the Eastern Cape.

The DA is prepared to work with the provincial government to introduce a robust Business Starter Toolkit and further support for entrepreneurs, which are essential to creating stable, labour-absorptive economic growth.

We also call on Premier Oscar Mabuyane’s administration to explore the Sustainable Development Goals (SDGs) as a strategic framework for inclusive development. This approach, proven effective in other regions, can drive targeted, measurable progress and create a foundation for shared economic growth across the province.

The DA remains committed to building a future where every resident has a fair chance to thrive in the economy and contribute to the growth of our communities.

Regards

Dr Vicky Knoetze MPL
DA Leader of the Official Opposition in the Eastern Cape Legislature

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