Merger could cause BCM’s unemployment rate to rise

Mbasa Gqokoma
12 May 2016

The Buffalo City Metro’s unemployment rate could increase when it takes control of a further 28 villages, as instructed by the Municipal Demarcation Board.

The metro has unsuccessfully fought the incorporation of new villages into its borders since 2013.

In a report before council recently, acting city manager Nceba Ncunyana cautioned the council about the impact of adding more than 62 000 residents of villages from Great Kei, Ngqushwa and Amahlathi municipalities would have on the metro.

Ncunyana says “Most of the population from the new areas is unemployed, which will impact on the current unemployment ratios”.

The latest labour survey quarterly report released by Stats SA this week revealed that the metro’s current unemployment rate stands at 24.1%, which amounts to 73 000 unemployed people.


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