Cape Town Shines as South Africa's Leader in Job Growth Over the Past Decade

In a significant economic revelation, Cape Town has been pinpointed as the front-runner in job creation among South African cities, according to a newly published research report. The city has experienced an impressive employment growth rate of 20.2% over the last decade, making it the beacon of job creation in the nation.

The study, titled ‘Striking disparities in employment across South Africa: Evidence from a new spatial database,’ delves into employment trends from 2014 to 2023, highlighting that Cape Town’s job market has expanded significantly faster than those of its urban peers. Buffalo City followed as a distant second, charting a notable but lesser growth rate of 13.1%. Other major cities like Tshwane, Mangaung, and eThekwini registered growth rates of 12.6%, 9.1%, and 8.2% respectively.

In stark contrast, Johannesburg and Ekurhuleni lagged substantially, with growth figures at merely 1.9% and 1.6%, both underperforming against the national average of 8%. This discrepancy underscores a broader trend of variable economic health across South Africa’s major metropolitan areas.

Cape Town Mayor Geordin Hill-Lewis attributed the city's robust job growth to "stable good governance and infrastructure investments" that have evidently outstripped other cities. This strategic focus has also been linked to the city's diverse sectors including retail, wholesale services, call centers, security, finance, and insurance, which have all contributed to the employment surge.

Highlighting the initiatives helping to steer this growth, Alderman James Vos, the mayoral committee member for Economic Growth, pointed to the city’s targeted supports for high-growth industries. Over the last decade, efforts such as supporting Special Purpose Vehicles (SPVs) have led to significant investments. For instance, in 2024 alone, initiatives in sectors like business process outsourcing, technology, and manufacturing helped secure more than R6.4 billion and over 15,000 jobs.

The retail and tourism sectors in Cape Town, reinforced by the presence of major national retailers’ headquarters including giants like Shoprite, Pick n Pay, and Woolworths, further bolster the city's economic landscape. Not only does this confluence of retail powerhouses enhance job opportunities, but it also amplifies Cape Town's status as a crucial economic hub.

This blend of diligent governance, vested industrial support, and vibrant sectoral diversity encapsulates why Cape Town stands as a beacon of employment growth in South Africa, setting a benchmark for other cities aiming for economic vitality and job creation.