The latest unemployment figures released by Statistics South Africa show some improvement in the Eastern Cape and Nelson Mandela Bay over the past quarter. However, the year-on-year figures remain a serious concern and highlight the urgent need to accelerate economic growth and create more employment opportunities.
South Africa’s official unemployment rate increased slightly from 33.6% in the second quarter of 2026 to 33.7% in the third quarter.
The Eastern Cape recorded a welcome improvement, with its unemployment rate declining from 47.5% to 44.3%. However, it remains the province with the highest unemployment rate in the country. Compared with the same period last year, unemployment in the province has increased by 3.1 percentage points.
Nelson Mandela Bay also recorded a decline in its unemployment rate, from 33.1% to 32.2%. However, this remains significantly higher than the 27.1% recorded a year ago. The number of unemployed people in the metro stands at approximately 186,000, compared with 183,000 in the previous quarter and 136,000 a year ago.
While the metro recorded an increase of approximately 20,000 employed people between the second and third quarters, the bigger picture remains worrying. The year-on-year figures show that the local economy is still struggling to create enough jobs to keep pace with the growing demand for employment. Recent economic growth has been supported largely by the financial and other services sectors, as well as transport and logistics, highlighting the importance of broadening the metro’s economic base.
Nelson Mandela Bay has a strong industrial foundation, established businesses and significant economic potential. However, this potential needs to translate into greater investment, business expansion and more employment opportunities. This requires a more enabling policy and regulatory environment, targeted investment incentives and practical support measures that encourage businesses to grow and create jobs.
There is also a need to diversify the metro’s manufacturing base while strengthening other sectors with significant growth potential. Tourism, for example, remains an underdeveloped economic opportunity, despite the metro’s rich heritage, natural attractions, coastline and proximity to major tourism assets. Greater coordination, investment and focused development are needed to translate these assets into increased economic activity and employment.
Similarly, the digital economy, including artificial intelligence and technology-driven industries, presents opportunities that Nelson Mandela Bay cannot afford to overlook. Developing these opportunities will require investment in skills, innovation, digital infrastructure and partnerships that position local businesses and young people to participate in emerging industries.
The Nelson Mandela Bay Business Chamber believes that rebuilding the municipality and restoring investor confidence must be a critical priority. This includes addressing persistent challenges such as unreliable infrastructure, electricity supply constraints, municipal inefficiencies and poor governance, which increase the cost of doing business and make it more difficult for companies to operate, expand and create employment.
Chamber Economist, Jeremy Dobbin, said the latest figures demonstrate why a stronger focus on economic growth and support for local businesses is essential.
“While the quarterly improvement is encouraging, we cannot lose sight of the fact that unemployment in both the Eastern Cape and Nelson Mandela Bay remains extremely high. The year-on-year increase in the number of unemployed people is particularly concerning and tells us that the local economy is still not creating jobs at the scale required.
“We need to build a more diversified and resilient economy that creates opportunities across a broader range of sectors. This means strengthening our manufacturing base, unlocking the potential of tourism and positioning Nelson Mandela Bay to participate in the growing digital and AI economy.
“However, this will not happen without the right enabling environment. We need policies and incentives that encourage investment, remove unnecessary barriers to business growth and make it easier for companies to expand and employ more people. Our small and medium-sized businesses also need greater access to markets, funding, skills and opportunities to participate meaningfully in the economy.
“Small businesses are an important part of the solution, but they cannot do it alone. We need a coordinated effort between government, business and other stakeholders to create the conditions for sustainable economic growth and meaningful job creation.”
The Chamber believes that the latest figures should serve as a reminder that improving employment requires more than short-term interventions. It demands sustained economic growth, a well-functioning metro, greater investment and a business environment that gives companies the confidence to expand.
Nelson Mandela Bay has significant strategic advantages, including its position as a two-port metro, its established automotive and manufacturing industries, its logistics infrastructure and its proximity to important agricultural, tourism and natural resources. These provide a strong foundation on which to build a more diversified and competitive economy.
The priority must be to unlock these advantages through decisive action, effective partnerships and an enabling business environment that converts economic potential into investment, business growth and, ultimately, meaningful employment for the people of Nelson Mandela Bay.
