Eastern Cape unemployment surged to 47.5% in the second quarter of 2026, Statistics South Africa’s Quarterly Labour Force Survey shows, as the national official jobless rate climbed to 33.6%. The data paints a stark picture: 8.5 million people were unemployed nationally between April and June, an increase of 345 000 over the quarter.
Regional losses deepen a national slump
The Eastern Cape’s jump — a quarterly rise of 2.9 percentage points from 44.6% — underlines a widening regional divergence in South Africa’s labour market. Since the second quarter of 2025 the province has shed 116 000 jobs year‑on‑year, according to Stats SA, reinforcing its position as the country’s weakest labour market.
Nationally, employment contracted in seven of South Africa’s ten industry sectors. The greatest quarterly losses were recorded in the community and social services sector, which shed 57 000 positions, with mining down by 26 000. Year‑on‑year figures show particularly heavy declines in manufacturing (down 100 000) and community services (down 101 000).
Who is most affected?
Youth continue to bear the brunt of the downturn. The official unemployment rate for people aged 15 to 24 rose to 62.8% in the quarter, and 36.4% of that cohort were not in employment, education or training. The broader labour underutilisation measure (LU4), which includes underemployed and discouraged workers, remained elevated at 46.3%.
- Unemployed persons nationally: 8.5 million
- Quarterly national increase in unemployed: 345 000
- Eastern Cape jobs lost year‑on‑year: 116 000
- Formal sector quarterly contraction: 41 000 jobs
- Informal sector expansion: 34 000 jobs
The data also reveals a mixed picture across provinces. The Western Cape remained the strongest performer with an official unemployment rate of 19.5%, a slight quarterly improvement of 0.1 percentage point and a year‑on‑year reduction of 1.6 percentage points. Within that province, the City of Cape Town recorded 21.9% unemployment while non‑metropolitan areas registered a lower 14.5%.
| Indicator | Rate / Number |
|---|---|
| National unemployment rate (Q2 2026) | 33.6% |
| Eastern Cape unemployment (Q2 2026) | 47.5% |
| Western Cape unemployment (Q2 2026) | 19.5% |
| City of Cape Town unemployment | 21.9% |
| Non‑metropolitan areas (Western Cape) | 14.5% |
| Youth unemployment (15–24 years) | 62.8% |
| Labour underutilisation (LU4) | 46.3% |
Sectoral shifts and the informal economy
The formal sector contracted by 41 000 positions over the quarter, while the informal economy expanded by 34 000. These shifts indicate that while some workers are finding informal or precarious work, formal job creation remains weak — a structural challenge for provinces such as the Eastern Cape where formal employment levels have been declining.
Manufacturing and community services show the steepest year‑on‑year declines, with both losing about 100 000 jobs each. Trade and construction offered some quarterly growth, but not enough to offset broader sectoral losses.
Local impact and policy implications
For the Eastern Cape, which is heavily reliant on a limited range of industries and remains more rural than some provinces, the loss of more than 100 000 jobs in a year will have direct consequences for household incomes, social grants demand and municipal revenue. The concentration of youth unemployment suggests long‑term scarring effects unless targeted interventions are scaled up.
Stats SA’s figures will test national and provincial policy responses ahead of the 2027 budget cycle. Measures that support manufacturing revitalisation, public employment schemes, youth skills and stronger links between education and the local labour market will be essential to arrest rising joblessness in the province.
For residents and policymakers in the Eastern Cape, the immediate priority is mitigating the social fall‑out while designing medium‑term strategies to diversify the provincial economy and restore formal employment growth.
Statistics South Africa reported the figures in its Quarterly Labour Force Survey for April to June 2026.
