The Nelson Mandela Bay Business Chamber has expressed deep concern over the latest unemployment figures released by Statistics South Africa, warning that the sustained decline in labour market participation and employment in Nelson Mandela Bay points to a structural economic crisis that requires urgent, coordinated intervention from government, business and labour.
Denise van Huyssteen, Chief Executive Officer of the Nelson Mandela Bay Business Chamber, says the latest data paints a deeply troubling picture of a metro that continues to lose economic momentum and opportunities for its people.
“While it is encouraging that Nelson Mandela Bay records a modest increase of approximately 4,000 jobs quarter-on-quarter, the reality is that unemployment has risen sharply from 28.2% to 29.8% in the first quarter of 2026 because job creation is simply not keeping pace with the number of people entering or re-entering the labour market. This reflects the immense pressure being placed on households and communities across our metro.”
“More concerning is the long-term trend. Over the past 11 years, the metro has experienced a steady decline in the proportion of working-age residents who are employed, dropping from 45.3% in 2015 to just 39.8% in 2026. Equally alarming is the decline in labour force participation, which falls from 67.6% to 56.7% over the same period. This means that a growing number of people effectively have disengaged from the economy altogether, whether as discouraged work-seekers or individuals who no longer see a pathway into meaningful economic participation.”
Van Huyssteen says the figures reinforce the urgent need to accelerate economic reforms and restore business confidence in the metro and broader Eastern Cape economy.
“The Eastern Cape losing 43,000 jobs in a single quarter is a stark reminder of the fragility of our regional economy. At a provincial unemployment rate of 44.6%, we face a humanitarian and socio-economic challenge that should not be normalised. High unemployment, particularly among young people, continues to undermine social stability, deepen inequality and weaken economic resilience.”
She says the Chamber remains particularly concerned about the national youth unemployment rate rising to 45.8%, warning that an entire generation risks being excluded from economic participation.
“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.”
Van Huyssteen notes that the sectors shedding the most jobs nationally, including construction, transport and community services, are all critical enablers of local economic activity and infrastructure development.
“This further highlights the importance of creating an enabling environment for investment, infrastructure delivery and industrial expansion. Nelson Mandela Bay has strong economic fundamentals, particularly in manufacturing and automotive production, but these advantages only translate into sustainable employment growth if we address the persistent constraints facing investors and businesses.”
She says the Chamber continues to work with stakeholders across the public and private sectors to drive economic recovery initiatives, investment facilitation, infrastructure advocacy and skills development programmes aimed at rebuilding confidence and stimulating inclusive growth.
“The Chamber’s flagship Bay of Opportunity initiative, coordinated through our Trade and Investment Desk, forms a focused effort to actively promote the region’s competitive advantages, unlock investment opportunities and foster meaningful business-to-business connections that can translate into long-term economic growth. In an increasingly competitive and volatile global environment, metros and regions must continuously assert their relevance, and the Bay of Opportunity initiative provides a cohesive and compelling narrative about the metro’s capabilities, strengths and untapped potential.”
“The unemployment crisis demands urgency, collaboration and decisive leadership. We need policycertainty, 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.”
