The Western Cape is creating jobs while the rest of the country is losing them

Figures released by Statistics South Africa this week indicate that despite a 1% rise in unemployment nationally between the last quarter of 2009 and the first quarter of 2010, the unemployment rate in the DA-governed Western Cape has fallen by more than 1% during the same time period.

This offers clear evidence that, where the Democratic Alliance (DA) governs, the vision of an Open Opportunity Society is bearing fruit. These figures reflect the strong economic stability brought to bear in the Western Cape's financial hub, the City of Cape Town, over the past four years, as well as the early but steady progress being made in the Western Cape administration. This progress, both in provincial and local DA administrations, has resulted in better delivery of infrastructure and services, it has created more space for small and medium sized enterprises to take root, it has eased administrative burdens, and it is actively improving investor confidence. This is translating into tangible employment opportunities - opportunities that will help us win the fight against poverty.

The unemployment rate in the Western Cape fell from 21.5% to 20.3% in the first quarter of 2010 - by far the best performance of any province. At the same time:

• The absolute number of employed people fell in seven of the ANC's eight provinces. In the only province where an increase in the absolute number of jobs was recorded - KwaZulu-Natal - this was offset by the pace of the expansion of the labour force, such that the unemployment rate still increased during the time period. In the first quarter of 2010, only the Western Cape recorded both an increase in the absolute number of jobs, and a reduction in the percentage of the population unemployed.
• Across the other eight provinces, run by the ANC, the average unemployment rate is 26%.

The Western Cape's performance need to be viewed particularly in the context of the performance of other provinces. The number of unemployed people in the Eastern Cape has risen by 60 000 over the first quarter of 2010 and the unemployment rate jumped 2.8%. In Gauteng, 81 000 more people are unemployed, and the unemployment rate is up 1.4%. Other provinces like Mpumalanga (34 000 more unemployed; up 2.7%) and the Free State (19 000 more unemployed, up 1.9%) faired similarly poorly.

The Western Cape, and the DA-run City of Cape Town in particular, is clearly recovering quickly from the recession. Unlike other provinces, the Western Cape is creating rather than losing jobs. In fact, data released shows that jobs are being created in the Western Cape across numerous sectors where other provinces are struggling:

In agriculture, 45 000 new jobs were created in the Western Cape during the first quarter of 2010, even while agriculture struggled in neighbouring provinces during the same time period -- the Eastern Cape lost 5 000 agricultural jobs in the first quarter, while the Northern Cape lost 6 000 jobs.

In trade, 11 000 new jobs were created in the Western Cape during the first quarter of 2010, even while, nationally, 48 000 jobs were lost in the sector. Of these, 42 000 were lost in Gauteng.

In the transport sector, 14 000 new jobs were created in the Western Cape during the first quarter of 2010. The Western Cape contributed half of all new jobs created in this sector nationally, during the first quarter.

Although the finance sector has been hit hard in the first quarter - 126 000 jobs were lost countrywide - the Western Cape faired, in relative terms, very well. Of South Africa's three major financial centres - Gauteng, KwaZulu-Natal and the Western Cape - only the Western Cape managed to stave off the worst of the job losses. In Gauteng, 52 000 financial sector jobs were lost during the first quarter; in KwaZulu-Natal, 31 000 jobs were lost in the sector, while the Western Cape, which employs a comparative number of people in this sector to KwaZulu-Natal, lost only 5 000 jobs.

What all those provinces that have experienced job losses have in common is ANC administrations that put the interests of the politically connected few above the interests of ordinary South Africans. Instead of attending to the economy and creating the space for job creation, ANC politicians engage in turf battles, reserve ‘jobs for pals' and enrich themselves through irregular tenders. The Western Cape, the City of Cape Town, and other DA administrations, are different. Under the DA, governments are better run, the economy is more competitive and more opportunities are created for people to lift themselves out of poverty.

In the Western Cape, the City of Cape Town, and everywhere else the DA governs, the Open Opportunity society is becoming a reality for all to see.

Statement issued by Ian Ollis, MP, Democratic Alliance deputy shadow minister of labour, May 7 2010

Click here to sign up to receive our free daily headline email newsletter