Western Cape Minister of Agriculture, Economic Development and Tourism, Dr Ivan Meyer, has responded to a parliamentary question from Member N D Nkondlo on the province’s latest employment figures. The quarterly employment contraction observed in Q1 2026 should be interpreted within the broader context of ongoing national economic pressures.
It is also important to note that quarterly labour market indicators are inherently volatile and susceptible to short-term fluctuations. As such, quarter-on-quarter declines in employment should be treated with caution, as they may reflect transitory disruptions rather than a sustained downturn. Despite this seasonal decline, it is noteworthy that this year, the Western Cape’s employment was 2 883 000, its highest ever recorded employment for the first quarter of any year previously.
The Western Cape continues to outperform all other provinces, by a significant margin, maintaining the lowest unemployment rate in the country. The province recorded a net increase of 22 000 jobs between Q1 2025 and Q1 2026. The provincial unemployment rate also remained stable at 19.6% over this period.
“While we acknowledge the quarterly decline in employment, it is important to emphasise that this forms part of a broader national contraction, with South Africa losing 345 000 jobs over the same period,” said Minister Meyer.
Drivers of job losses are national and structural
Minister Meyer explained that the recent increase in unemployment is driven by a combination of factors rather than a province-specific shock.
These include:
- Global factors and a national economic slowdown, affecting labour demand across all provinces,
- Seasonal employment effects, as temporary festive-season jobs unwind in the first quarter,
- Broad-based job losses across both formal and informal sectors,
- Sector-specific declines, particularly in community and social services, construction, and transport.
In particular, the community and social services sector experienced significant job losses, partly linked to reduced donor and public funding, including global funding constraints affecting healthcare and research programmes.
“These trends point to a challenging labour market environment in which both demand for labour and job sustainability have weakened. Importantly, these dynamics are not unique to the Western Cape,” Meyer said.
Western Cape still leads on recovery trajectory
Despite quarterly volatility, the Western Cape remains the best-performing province in key labour market indicators.
“We remain focused on enabling economic growth and creating an environment where businesses can invest, grow, and create jobs,” Meyer said.
Stronger business confidence underscores provincial resilience
The second quarter 2026 RMB/BER Business Confidence Index (BCI) further reinforces the relative strength of the Western Cape economy.
- The Western Cape BCI increased by 5 points to 55, remaining above the neutral 50 mark,
- By contrast, national business confidence declined sharply to 39,
- The Western Cape is currently the only province above the neutral threshold.
“This improvement in business confidence, even amid a difficult national environment, global challenges and the recent floods, reflects continued investor trust in the Western Cape’s economic fundamentals and governance environment,” Meyer added.
Committed to lowering unemployment
While acknowledging that “there is still much more ground to cover,” Minister Meyer reaffirmed the Western Cape Government’s commitment to its growth strategy.
“As unemployment remains one of South Africa’s most pressing challenges, the Western Cape will continue to implement proven, evidence-based interventions to drive inclusive growth and create more dignified jobs for our residents,” he said.
Media enquiries:
Daniel Johnson
Media Liaison Officer to Provincial Minister Ivan Meyer
079 990 4231
Email: Daniel.Johnson@westerncape.gov.za
