Polokwane’s jobs crisis deepens as population outpaces economy
Polokwane's unemployment rate has risen to 22.24% as population growth outpaces job creation, according to the latest IDP report.
POLOKWANE – The local population is growing faster than the local economy can create jobs, leaving the city facing a deepening unemployment crisis.
The Integrated Development Plan (IDP) Status Quo Report 2027/28, tabled in council chambers last Wednesday, shows that although employment has grown, the unemployment rate increased from 14.1% in 2015 to 22.24% in 2026.
Polokwane as an economic driver
Polokwane drives the Capricorn district economy, accounting for 88% of its economic activity and 70% of employment, according to information sourced from South Africa Regional eXplorer 2026.
Over the past decade, the city added 37 000 jobs, taking total employment to 267 000.
Population growth has, however, outpaced job creation. The working-age population reached 561 000, of whom 355 000 are economically active.
As the labour force expanded, the number of unemployed residents increased by 40 000 over the decade, reaching 79 000 compared with 38 400 in 2015.
Economic growth insufficient
The municipality acknowledged in the report that annual economic growth of less than 1% is insufficient to absorb the growing population.
Rising living costs add pressure
The pressure is compounded by rising living costs.
Another fuel price increase took effect two days ago, with 95 Unleaded petrol increasing by up to R3.33 per litre and diesel by up to R3.24 per litre. The increases, driven by global oil markets and geopolitical tensions, place additional pressure on both job seekers and workers.
Taxi fares from outlying areas have already increased this year. Following the latest fuel increase, the South African National Taxi Council (Santaco) entered urgent subsidy discussions with government officials this week.
Where jobs are concentrated
Meanwhile, the report shows that Polokwane remains heavily dependent on:
- Community services, which account for 70 300 jobs
- Wholesale and retail trade, with 68 600 jobs
Manufacturing and mining continue to lag despite Limpopo’s natural resources.
Infrastructure projects: Temporary vs permanent jobs
The city’s planned response for the coming financial year focuses largely on infrastructure projects, which are expected to provide short-term employment rather than permanent job creation.
Nine catalytic projects are projected to create about 12 000 temporary jobs, but fewer than 3 000 permanent positions.
Among them are:
| Project | Temporary Jobs | Permanent Jobs |
|---|---|---|
| R5bn Academic Hospital | 2 400 | 1 000 |
| Polokwane State Theatre | 350 | 50 |
| Bendor Housing | 1 200 | 30 |
The N1 Logistics Hub and Game Reserve Eco-Estate are also expected to contribute to job creation, although job numbers have not yet been projected as the projects remain in the design phase.
The challenge facing Polokwane
The report highlights the challenge facing Polokwane: job creation is increasing, but not fast enough to keep pace with the city’s expanding labour force.
