ETHEKWINI Municipality has recorded the lowest official unemployment rate among South Africa’s metropolitan municipalities, according to the Quarterly Labour Force Survey (QLFS) for the second quarter of 2026 released by Statistics SA.

The metro’s unemployment rate fell to 21.2% between April and June 2026, putting eThekwini ahead of Cape Town at 21.9% and significantly below the national unemployment rate 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.

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Employment rises by 90 000

The improvement was accompanied by strong growth in employment. The number of employed eThekwini residents increased to approximately 1.29 million, up by 90 000 compared with the second quarter of 2025.

At the same time, the number of unemployed residents declined by 92 000 year-on-year to 347 000. The municipality said eThekwini was the only metro to record declines in unemployment both quarter-on-quarter and year-on-year.

The city’s absorption rate, the proportion of the working-age population that is employed, also improved, rising to 46.9% from 44.2% a year earlier. 

According to the municipality, this was the largest improvement recorded among the metropolitan municipalities.

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The City said formal sector employment was a key contributor to the gains. The sector employed about 948 000 people during the second quarter, an increase of 32 000 from the previous quarter.

The broader measure of labour underutilisation also showed improvement in eThekwini. The expanded rate, which includes discouraged work seekers and people working part-time who want more hours, declined to 40.2%, compared with 44.2% a year earlier.

The municipality noted that this improvement contrasts with the movement in the national equivalent measure, which increased over the same period.

eThekwini Mayor Cyril Xaba said the figures suggest that efforts to improve the city’s investment environment are beginning to translate into employment opportunities.

“These figures show that the fundamentals we have been working on, which includes infrastructure, investment facilitation and support for the industrial and tourism sectors, are translating into jobs for our residents.”

Xaba cautioned, however, that the latest figures should not be viewed as the end of the city’s unemployment challenge.

“More than 340 000 people in this city are still looking for work, and our absorption rate must go higher,” he said. 

“But the direction of travel is correct and we intend to sustain it.”

Xaba added that unemployment remains one of the most significant challenges facing eThekwini residents. 

The City plans to continue prioritising infrastructure investment, supporting small businesses and strengthening partnerships with the private sector to create further employment opportunities.

The full Quarterly Labour Force Survey for the second quarter of 2026 is available from Statistics SA.

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