Metros lose jobs edge as government steps up urban reforms

By Lebone Rodah Mosima 

South Africa’s largest cities are losing their role as the country’s main engines of job creation just as the government is stepping up intervention in failing municipal systems, according to a new economic report.

The Cities Economic Outlook 2026, released on Tuesday through the Spatial Economic Activity Data-South Africa partnership, said employment growth in the country’s eight metropolitan municipalities had faltered over the past decade, with only Cape Town and Tshwane bucking the trend.

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Higher-value sectors such as manufacturing had stagnated in several cities, while job growth had shifted towards non-tradable activities and public services.

The report also said youth were hit hardest by job losses, with little sign of recovery since the COVID-19 shock.

President Cyril Ramaphosa’s administration has placed local government failure, water outages, and decaying infrastructure at the centre of