GQEBERHA – The latest labour force statistics released by Statistics South Africa have triggered strong reactions from business and political organisations, with concerns mounting over rising unemployment, worsening poverty and the growing number of young South Africans unable to find work.

According to the latest figures, South Africa’s official unemployment rate increased from 31.4% to 32.7% during the first quarter of 2026, after more than 345,000 jobs were lost nationally.

Youth unemployment among people aged 15 to 34 now stands at approximately 45.8%.

The Nelson Mandela Bay Business Chamber described the figures as deeply concerning, warning that the unemployment crisis is placing increasing pressure on households and communities.

Chief Executive Officer Denise van Huyssteen said Nelson Mandela Bay’s unemployment rate rose from 28.2% to 29.8% during the first quarter of 2026, despite the metro recording a modest increase of around 4,000 jobs quarter-on-quarter.

“We cannot build a sustainable and inclusive economy while nearly half of our young people remain unemployed. Youth unemployment is not only an economic issue; it is a social crisis that impacts dignity, social cohesion and future growth prospects,” she said.

Van Huyssteen said long-term employment trends in Nelson Mandela Bay also remain concerning, with the proportion of working-age residents who are employed declining from 45.3% in 2015 to 39.8% in 2026.

She added that labour force participation in the metro has dropped from 67.6% to 56.7% over the same period, indicating that many people have become discouraged and disengaged from the economy.

The Chamber further highlighted that the Eastern Cape lost 43,000 jobs in a single quarter, contributing to a provincial unemployment rate of 44.6%.

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DA challenges municipal employment policies

Amid the growing unemployment crisis, the Democratic Alliance has intensified its criticism of employment equity policies in the Nelson Mandela Bay Municipality.

On Monday, 11 May, the DA held a protest at the Gail Road municipal depot in Gqeberha and submitted a memorandum, motions and questions relating to the municipality’s hiring practices.

DA Nelson Mandela Bay spokesperson for Corporate Services, Annette Lovemore, said the party is opposing the use of provincial demographic targets in municipal employment equity planning, arguing that Nelson Mandela Bay’s population profile differs significantly from that of the Eastern Cape.

According to Census 2022 figures cited by the DA, Nelson Mandela Bay’s population consists of 62.7% black residents, 19.2% coloured residents, 15.7% white residents and 1.2% Asian or Indian residents.

JP Smith, Deputy Chairperson of the DA Federal Council, outlined the DA’s alternative policy proposals aimed at empowering disadvantaged South Africans based on need rather than race.

EFF links unemployment to poverty and inequality

The Economic Freedom Fighters responded to the latest labour statistics, describing the unemployment figures as evidence of deepening poverty, hunger and economic collapse.

In a statement issued, the EFF said unemployment has remained above 30% for more than five consecutive years and warned that women and black youth in townships and rural communities continue to bear the heaviest burden of economic exclusion.

The EFF also linked unemployment to rising electricity tariffs, fuel prices, transport costs and food prices, arguing that millions of employed South Africans are still unable to meet basic living costs.

Van Huyssteen said addressing unemployment requires coordinated action between government, business and labour, alongside improvements in governance, infrastructure and investor confidence.

“The unemployment crisis demands urgency, collaboration and decisive leadership. We need policy certainty, municipal service delivery, reliable infrastructure, improved local governance and accelerated economic reform if we are to reverse these long-term trends and restore hope to the people of Nelson Mandela Bay,” she said.

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