Lowest Unemployment Rate Among South Africa’s Metros

EThekwini Municipality has recorded the lowest official unemployment rate of any metropolitan municipality in South Africa, according to the Quarterly Labour Force Survey (QLFS) for the second quarter of 2026 released by Statistics South Africa.

The survey places eThekwini’s unemployment rate at 21.2% for April to June 2026, lower than Cape Town at 21.9% and well below the national average of 33.6%.

This marks a 5.6 percentage point decline from the 26.8% recorded in the same quarter of 2025, the sharpest fall of any metro over the period.

STRONG JOB CREATION AND ABSORPTION

• The number of employed residents rose to 1.29 million, an increase of 90,000 compared with Q2 2025.
• Over the same period, unemployed residents fell by 92,000 to 347,000, making eThekwini the only metro to record declines both quarter?on?quarter and year?on?year.
• The City’s absorption rate (share of working?age residents in employment) climbed to 46.9% from 44.2% a year earlier, the largest improvement of any metro.
• Growth was concentrated in the formal sector, which employed 948,000 people in Q2, up 32,000 from the previous quarter.

BROADER LABOUR MARKET IMPROVEMENT

The expanded measure of labour underutilisation, which includes discouraged work?seekers and part?time workers seeking more hours fell to 40.2% from 44.2% a year earlier. By contrast, the national equivalent rose over the same period.

Mayor Councillor Cyril Xaba said the results reflect sustained work to stabilise the City’s investment environment:

“These figures show that the fundamentals we have been working on which includes infrastructure, investment facilitation and support for the industrial and tourism sectors, there are translating into jobs for our residents. We do not read this as a finish line. More than 340,000 people in this city are still looking for work, and our absorption rate must go higher. But the direction of travel is correct and we intend to sustain it.”

The Municipality emphasised that unemployment remains the most significant challenge facing residents. It will continue to prioritise infrastructure investment, support for small businesses and strengthen partnerships with the private sector to expand employment opportunities.

The full Quarterly Labour Force Survey is available on the Statistics South Africa website.