The only province that continues to have more people unemployed than working in South Africa

The latest Quarterly Labour Force Survey (QLFS) from Stats SA showed that South Africa’s unemployment rate increased to 33.2% in the second quarter of 2025, up from 32.9% in the first quarter and 31.9% at the end of 2024. 

Between April and June, 159,000 people joined the labour force, but only 19,000 secured employment, while 140,000 were added to the ranks of the unemployed.

The number of discouraged work-seekers who have stopped looking for work fell slightly by 28,000, while the number of people not economically active for other reasons remained unchanged. 

The expanded unemployment rate, which includes discouraged job seekers, decreased marginally from 43.1% to 42.9%. However, the data showed that some provinces fared better than others.

Gauteng and the Eastern Cape saw the largest employment gains, with 95,000 and 89,000 more people employed, respectively. 

The Western Cape, KwaZulu-Natal, and the Northern Cape recorded job losses of 117,000, 86,000, and 28,000, respectively. 

Despite its losses, the Western Cape has the lowest official unemployment rate at 21.1% and is the only province with an expanded unemployment rate below 30%.

The North West is in the worst position. The province has an official unemployment rate of 40.1% and an expanded unemployment rate of 54.7%, meaning more than half of its working-age population is unemployed. 

It is the only province where the majority of adults are either unemployed or have stopped looking for work altogether.

Around 14.6% of the unemployed have given up looking for work. The province also has the lowest labour absorption rate in the country at 31.6% and one of the lowest labour force participation rates at 52.7%.

The province’s economy relies heavily on mining, particularly platinum mining, which accounts for 28% of its GDP.

Manufacturing plays a smaller role, focused mainly on food, beverages, and metals. A rise in commodity prices in 2021 temporarily boosted the economy, but the mining sector has since entered a technical recession after contracting in the first quarter of 2025.

The situation needs to be declared a disaster

The mining industry has faced ongoing challenges nationally. Regulatory uncertainty has discouraged investment, and problems at state-owned enterprises such as Eskom and Transnet have affected operations. 

According to Old Mutual Wealth chief investment strategist Izak Odendaal, the sector has been in long-term decline over the past decade in terms of both output and employment.

Governance issues have also contributed to the province’s economic difficulties. The Auditor-General has pointed to instability in municipal leadership, weak controls, and poor service delivery as areas needing urgent improvement. 

While some progress has been made, these problems continue to affect economic performance. The Democratic Alliance (DA) stressed that more than 1.5 million residents are now without jobs. 

“Our absorption rate of 31.6% is the lowest in the country, and labour force participation is among the lowest nationally at 52.7%,” it said in a statement in response to the labour statistics. 

It added that on 4 July, it submitted a memorandum to Premier Lazarus Mokgosi, calling for unemployment to be declared a provincial disaster.

The proposals included setting up a Youth Employment War Room, creating a jobs turnaround plan with measurable targets, improving infrastructure to support growth, and publishing quarterly investment and job creation updates. 

The party said there has been no response from the Premier and no indication of a jobs crisis plan.

The DA added that while job creation largely depends on the private sector, the provincial government can help create a business-friendly environment and support sustainable economic growth. 

They have asked the provincial Portfolio Committee to address the issue directly with the Premier.

Issued on BusinessTech by Malcolm Libera | https://businesstech.co.za/news/government/835149/the-only-province-that-continues-to-have-more-people-unemployed-than-working-in-south-africa/