EASTERN CAPE NEWS - The Eastern Cape is facing a worsening economic crisis, with the latest quarterly labour force survey (QLFS) revealing that 83 000 jobs were lost in the first three months of this year.
The job losses span key sectors such as agriculture, tourism and manufacturing, and have pushed the province's official unemployment rate to 39.3% - up from 36.6% in the previous quarter.
More alarmingly, the expanded unemployment rate, which includes discouraged work-seekers, now stands at 49% - the second highest in the country after the North West province.
"This is not just a statistical crisis,” said Dr Vicky Knoetze, DA member of the provincial legislature. "It means children are going to bed hungry, families are choosing between food and electricity, and hopelessness is setting into communities."
Key sectors under pressure
The automotive sector, a mainstay of the provincial economy, is under severe strain.
Mercedes-Benz South Africa has reduced output at its East London plant, moving from a three-shift to a two-shift model due to declining global demand and ongoing inefficiencies at South African ports.
In the agriculture sector, job losses continue to mount.
Farmers and agriworkers are grappling with deteriorating rural infrastructure, rising input costs, and limited access to reliable markets.
Without strategic intervention and investment in rural economies, analysts warn the situation will worsen.
Tourism - once a promising source of youth employment - is also in decline. Seasonal jobs are drying up, bed occupancy rates have dropped, and safety concerns, poor infrastructure, and a lack of marketing have taken a toll on this labour-intensive sector.
Trade threats and global headwinds
The local economy is also bracing for external shocks.
The United States recently imposed new tariffs on South African exports, including a 30% general tariff on goods and a 25% tariff on vehicles and automotive components.
The potential erosion of trade benefits under the African Growth and Opportunity Act (AGOA) is adding further uncertainty.
"These developments threaten not only jobs and exports but investor confidence in our province's long-term economic viability," Knoetze said.
A tale of two provinces
While the Eastern Cape sheds jobs, the DA-governed Western Cape has reportedly created 49 000 new jobs in the same period, maintaining the lowest unemployment rate in South Africa at 19.6%.
According to Knoetze, the difference lies in "practical, proven policies" that ensure basic infrastructure is maintained, public services function, and an enabling environment for job creation is fostered.
Call for urgent intervention
Knoetze warned that, without urgent and targeted intervention, the Eastern Cape's economic decline will continue.
"The ANC's economic rhetoric no longer matches the lived reality of families in this province," she said.
"We cannot continue to lose jobs in silence. It's time to turn the tide and restore hope."
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