Premier

The Department of Economic Development and Tourism informed me that:

1. How does he plan to adapt and strengthen his Growth for Jobs Strategy to address this rise?

While the latest Quarterly Labour Force Survey (QLFS) does indicate a quarter-on-quarter increase in unemployment, it is crucial to analyse labour market trends over a longer-term horizon to gain a more complete perspective. On a year-on-year basis, from Q2 2024 to Q2 2025, the unemployment rate in the Western Cape has in fact decreased from 22.2% to 21.1%, with the Western Cape now home to 69 000 more jobs than the same period last year. The Western Cape continues to lead the nation in the majority of the key metrics of employment, and continues to demonstrate a broad unemployment rate that is more than 5% lower than the next nearest province’s narrow unemployment rate (i.e. the Western Cape continues to do better in employment rate, even when judged against more stringent criteria than any other province). This demonstrates underlying resilience and positive momentum in our provincial economy, even amidst short-term fluctuations caused by seasonal change and a turbulent global trade environment.

The Growth for Jobs (G4J) Strategy is fundamentally designed to be a long-term framework that addresses the systemic barriers to economic growth. Its core premise – namely, that the government’s primary role is to create an enabling environment that accelerates growth and empowers individuals and businesses to seize economic opportunities - remains unchanged and highly relevant. The strategy continues to recognise the private sector as the primary driver of sustainable job creation, and government’s role in creating the necessary conditions for job creation to take place at a suitable scale.

Therefore, rather than requiring reactive adjustments to short-term data, the strategy's strength lies in its consistent and proactive implementation, which has thus far proved successful. It is structured to weather quarterly volatility by focusing on the foundational pillars of a growing economy.

It is important to recognise that the Western Cape economy does not operate in a vacuum. The Western Cape economy operates within the same global economic environment as the national economy, and is not immune to external shocks like tariffs, global economic slowdowns, and supply chain constraints.

The G4J Strategy prioritises systemic reforms to the economy whose full benefits will accrue over time through complementary interventions and sustained private sector absorption of labour. To this end, the Western Cape has consistently remained at the forefront of South Africa’s labour market participation, with a participation rate of 67.9% and the highest absorption rate at 53.5% as at Q2 2025.

Nonetheless, we take any increase in unemployment seriously and we will continue to monitor the labour market closely. Employment trends, such as this rise in unemployment, will continue to be closely monitored and analysed to deepen understanding of the Western Cape’s economic trajectory - ensuring that the strategy remains grounded in real-world labour market dynamics, as its core focus remains on enabling private sector-led growth.

2. What concrete interventions will be prioritised to ensure sustainable job creation across all sectors of the province?

The Western Cape will continue to prioritise the implementation of the Growth for Jobs Strategy.

To ensure businesses of all sizes can expand and employ people, our priority interventions focus on removing the key blockages to growth. For example:

• Red tape reduction: We are intensifying our efforts to make it easier, faster, and cheaper to do business in the Western Cape. This includes streamlining permitting and licensing processes across municipalities to unlock private sector investment.
• Our provincial Energy Resilience Programme is working to protect businesses from the impact of load shedding and ensure our economy can grow.
• Enhancing access to finance and business support: In collaboration with the Johannesburg Stock Exchange (JSE), our SME Accelerator Support Programme is directly enhancing access to finance and providing customised incubation for Western Cape-based SMEs. This intervention is already showing positive results, with 98 businesses having registered for and commenced with the online training by the end of July 2025.

Alongside creating a job-friendly environment, we are prioritising interventions that connect people to opportunities.  There is a focused set of targeted interventions, specifically within Priority Focus Area 7: Improved Access to Economic Opportunities, which are designed to expand pathways into employment, entrepreneurship, and skills development across all sectors of the province.  Flagship initiatives include the rollout of Career Guidance and Life Orientation programmes in high schools, which expose learners to diverse industries, equip them with essential life skills, and help reduce the skills mismatch through informed subject choices.

The Schools of Specialisation model will promote vocational and occupational training, particularly in STEAM subjects, aligning education outcomes with labour market needs. This is a crucial element of the G4J Strategy, as it strengthens the human capital pipeline to support private-sector-led economic growth.

Post-school interventions will focus on stimulating entrepreneurship and expanding experiential learning opportunities, such as internships and the YearBeyond programme, to improve employability and support youth-led enterprise. Additionally, the province will pilot a Township Action Project, co-developed with local communities, to bring economic opportunities closer to where people live.

It should be noted that the Growth for Jobs strategy as a whole does not function in a vacuum, and forms a central part of the Western Cape’s Provincial Strategic Plan 2025-2030, which has been available to read for some months.