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SoCR16-Main-Report-online

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Similarly, the average city unemployment 12 rate (using the narrow or official definition) fell from a high of<br />

26.8% in 2003 to 20% in 2008, reaching 23.3% in 2013. In 2013, unemployment was highest in<br />

Ekurhuleni (27.8%), Nelson Mandela Bay (26.8%), Johannesburg (25.4%) and Cape Town (25%).<br />

eThekwini’s lower rate of unemployment (16.1%) is mainly because of its low labour force participation.<br />

The Quarterly Labour Force Survey publishes both the narrow or official rate of unemployment and<br />

the expanded rate of unemployment for metropolitan municipalities. Table 3.1 shows these rates for<br />

Quarter 2 in 2015.<br />

Table 3.1: Narrow and expanded unemployment rate (Q2 2015)<br />

Unemployment (Q2 2015) Narrow Expanded<br />

%<br />

Mangaung 29.0 36.7<br />

Tshwane 27.4 35.9<br />

Ekhuruleni 29.4 34.4<br />

Johannesburg 26.2 28.7<br />

Nelson Mandela Bay 33.2 33.2<br />

Buffalo City 28.8 33.2<br />

eThekwini 16.5 26.3<br />

Cape Town 22.6 23.9<br />

South Africa 25.0 34.9<br />

Source: Stats SA (2015)<br />

Among the large <strong>cities</strong>, the Gauteng <strong>cities</strong> had the highest rates of expanded unemployment, with<br />

Tshwane (35.9%) and Ekurhuleni (34.4%) experiencing similar rates to the national average (34.9%).<br />

Of interest is eThekwini’s expanded rate of unemployment (26.3%), which is much higher than its<br />

narrow rate of unemployment (16.5%). This most likely reflects the sizable numbers of discouraged<br />

work-seekers in the city.<br />

12 Statistics South Africa draws on two definitions of unemployment. The narrow or official definition of unemployment refers to those within the<br />

economically active population (i.e. aged 15 to 65 years) who (i) did not work in the seven days before the interview, (ii) want to work and are<br />

available to start within two weeks of the interview, and (iii) have taken active steps to find work or to start a form of self-employment in the four<br />

weeks before the interview. This definition of employment was formulated by the International Labour Organisation and is generally used in<br />

international comparisons of unemployment in more developed economies. In contrast, the expanded definition of unemployment excludes the<br />

last requirement – i.e. those who have taken active steps to find work or to start a form of self-employment in the four weeks before the<br />

interview. This was because either no jobs were available in the area, or they were unable to find jobs requiring their skills, or they had lost hope<br />

of finding any kind of job (Mohr, 1998; Stats SA, 2015).<br />

100 State of South African Cities Report 2016

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