Western Cape Outpaces the Nation in Job Creation and Economic Strength

Western Cape Outpaces the Nation in Job Creation and Economic Strength

The Western Cape has cemented its reputation as South Africa’s most resilient labour market, recording a net gain of 69 000 jobs year-on-year in the second quarter of 2025. This is according to the latest Quarterly Labour Force Survey (QLFS) released by Statistics South Africa.

The province’s official unemployment rate now stands at just 21.1%, the lowest in the country and significantly below the national average of 33.2%.

Labour Market Highlights

• Employment Growth: A 2.6% year-on-year increase, well above the national growth rate of 0.9%.
• Labour Market Strength: Highest absorption rate in the country at 53.5%, and a high labour force participation rate of 67.9%.
• Sectoral Gains: Six of ten industries saw job growth over the past year:
  • Trade: +42 000 jobs
  • Agriculture: +40 000 jobs (+24.7%)
  • Transport: +23 000 jobs

Women Leading the Way

The Western Cape continues to outperform other provinces in female labour market participation and professional representation. It boasts the lowest female unemployment rate in South Africa and the highest share of women in professional roles as of 2024.

Formal & Informal Sector Growth

While some short-term quarterly contractions were noted due to seasonal factors, year-on-year figures remain robust:

• Formal non-agricultural sector: +45 000 jobs
• Informal sector: +8 000 jobs

Resilience in Challenging Times

“These results affirm the Western Cape’s commitment to fostering a dynamic and inclusive economy,” said Dr Ivan Meyer, Western Cape Minister of Economic Development and Tourism. “Our province continues to outperform national benchmarks, offering better employment opportunities and demonstrating resilience in key industries such as agriculture and trade.”

The Western Cape Government has reaffirmed its commitment to driving job creation, economic development, and inclusive growth across all sectors and communities.