Eastern Cape’s unemployment rate has surged to 41.2%, even as national figures show a slight decline. Advocacy group Free SA says the official numbers mask a worsening local crisis.
What Happened
According to Stats SA’s Q3 2025 Quarterly Labour Force Survey (QLFS), the Eastern Cape now holds the highest unemployment rate in the country, up from 39.5% in the previous quarter.
While the national unemployment rate fell slightly to 31.9%, Free SA argues that this “recovery” hides widening disparities between provinces.
“This is not recovery, it’s triage,” said Reuben Coetzer, Free SA spokesperson.
Coetzer warned that the national labour underutilisation rate — including discouraged workers and those underemployed — is now 42.4%, painting a picture of deep economic exclusion.
Official Response
Free SA slammed Pretoria’s centralised economic model, calling it “destructive” to provinces like the Eastern Cape. The organisation is calling for:
- Localised policy-making authority
- Reduced red tape for small businesses
- Tax breaks and compliance relief for job creators
- Accelerated infrastructure and energy reform
- Incentives for provincial growth
“Jobs don’t come from speeches or slogans,” Coetzer said. “They come from risk-taking, entrepreneurship, and investment.”
Despite a national gain of 248,000 jobs in sectors like Construction and Trade, key industries such as Manufacturing, Finance, and Utilities posted losses — a red flag for long-term recovery.
Community Impact
Free SA has labelled the labour situation a “state of economic emergency,” warning that without radical change, regions like the Eastern Cape risk permanent economic exclusion.
“South Africa is not one economy, it’s many,” Coetzer added. “Pretoria cannot keep dictating policy from above while provinces slide deeper into crisis.”
Quick Facts:
- Eastern Cape unemployment: 41.2% (highest in SA)
- National unemployment: 31.9%
- Labour underutilisation rate: 42.4%
- Sectors with job losses: Manufacturing, Finance, Utilities
- Free SA’s call: Decentralise policy, boost local reform
