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42,000 Jobs lost in Nelson Mandela Bay as automotive sector crumbles

GQEBERHA- Nelson Mandela Bay Metropolitan Municipality(NMBM) is reeling from a devastating blow, with 42,000 jobs lost in the automotive sector due to a 25% United States(US) tariff.

The Democratic Alliance (DA) in the Eastern Cape warns that the Eastern Cape needs urgent economic reform to avoid plunging into a vicious cycle of joblessness and dependency.

According to the latest Quarterly Labour Force Survey (QLFS), the Metro lost 42,000 jobs in the second quarter of 2025, with the official unemployment rate jumping from 22.3% to 26.4%. The expanded unemployment rate ballooned from 27.1% to 35%.

DA leader Dr. Vicky Knoetze emphasized that, “Citizens of the Eastern Cape deserve a government that will act decisively to create jobs, restore dignity, and protect livelihoods.”

The DA proposes a six-point plan to boost the economy and drive sustainable job creation, including killing job-killing policies, ensuring cheap energy, fixing crumbling networks, cutting waste, boosting municipalities, and fighting crime.

The Eastern Cape province saw a mixed bag of economic news, with 89,000 jobs added provincially in Q2, likely due to seasonal agricultural jobs. Buffalo City saw unemployment drop from 37.3% to 28.6%, adding 30,000 jobs, although the sectors driving this growth remain unclear.

DA’s plan aims to unlock investment, stabilize the economy and help businesses thrive.

“Eastern Cape can’t lose more youth,” warns DA vowing to lead for opportunity, safety, and honest governance.

Photograph: supplied