The eThekwini Municipality has recorded the lowest official unemployment rate among South Africa’s metropolitan municipalities, according to the latest Quarterly Labour Force Survey (QLFS) released by Statistics South Africa (Stats SA).
The QLFS for the second quarter of 2026 shows that eThekwini’s unemployment rate stood at 21.2% between April and June 2026.
This was lower than Cape Town’s unemployment rate of 21.9% and significantly below South Africa’s national unemployment rate of 33.6%.
eThekwini Unemployment Rate Falls
The latest figures represent a significant improvement for eThekwini, with the metro's unemployment rate declining by 5.6 percentage points compared to the 26.8% recorded during the same quarter in 2025.
This was the largest decline in unemployment recorded by any South African metro over the period.
eThekwini Mayor Councillor Cyril Xaba said the figures reflect ongoing efforts to strengthen the city's investment environment and create employment opportunities.
“These figures show that the fundamentals we have been working on, which include infrastructure, investment facilitation and support for the industrial and tourism sectors, 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,” Xaba said.
90,000 More People Employed in eThekwini
The number of employed residents in eThekwini increased to 1.29 million during the second quarter of 2026.
According to the Municipality, this represents an increase of 90,000 employed people compared to the second quarter of 2025.
“At the same time, 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 Municipality said.
The city's absorption rate, which measures the proportion of the working-age population that is employed, also improved.
eThekwini's absorption rate increased to 46.9%, up from 44.2% a year earlier. This was the largest improvement recorded among South Africa's metropolitan municipalities.
Formal Sector Drives Employment Growth
Employment growth in eThekwini was concentrated in the formal sector.
The formal sector employed approximately 948,000 people during the second quarter of 2026, an increase of 32,000 compared to the previous quarter.
The Municipality said that despite the improvement in employment figures, unemployment remains one of the biggest challenges facing residents.
eThekwini to Focus on Job Creation
The Municipality said it will continue prioritising initiatives aimed at expanding employment opportunities across the city.
These include increased investment in infrastructure, support for small businesses and stronger partnerships with the private sector.
The latest QLFS figures suggest that eThekwini has made significant progress in reducing unemployment, but the city says continued investment and collaboration will be needed to ensure that more residents benefit from economic opportunities.
