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A sign showing a business closed
The Eastern Cape’s unemployment rate remains stubbornly high at 39.5% despite the province adding 89 000 jobs, in the last quarter.
While trade, domestic work and construction has driven gains, the closure of major manufacturing employers is fuelling concern.
Tyre giant Goodyear, once a source of hundreds of jobs, is closing its doors in Kariega.
Now, after 48 years, multi-purpose manufacturer Fisher Engineering and Housing Factory is also closing down.
Smaller factories across the province face similar struggles, deepening the jobs crisis.
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Kariega was once a beacon of hope for job seekers as it is home to major manufacturers such as VW and the tyre manufacturing plant, Goodyear.
That hope is now slowly fading as companies are either laying off workers, or shutting their doors completely. The youth of this area says their dreams have been shattered.
A resident says, “It’s very, very bad. That’s what I’ve noticed and the Goodyear situation has a bad effect because my father just became unemployed and I don’t really know what the future looks like.”
Another says: “For us as students, it’s discouraging because when you study you want to work in a big company and now when they close we are discouraged.”
A third resident adds, “It is difficult to stay at home and be unemployed. As students we want to graduate and be employed.”
Hundreds of employees from the Goodyear manufacturing company were hit with shocking news recently when the company announced closure of its local plant.
Resistance and negotiations failed to achieve desired results.
National Union of Metalworkers of South Africa’s (NUMSA) Irvin Jim says some of the severance packages are unfair to workers.
“The plant where we are facing a crisis is the Goodyear plant. Goodyear has decided to close. And I must say that we are faced with an arrogant employer who does not respect the workers who served that company for years. He is now giving them a lousy 50k,” he says.
[WATCH]
NUMSA has expressed concern over Goodyear’s decision to shut down its Kariega plant, highlighting the devastating effect on workers and their families in a region already struggling with high unemployment. pic.twitter.com/e5iFPqgvJy— SABC News (@SABCNews) June 9, 2025
[WATCH]
NUMSA has expressed concern over Goodyear’s decision to shut down its Kariega plant, highlighting the devastating effect on workers and their families in a region already struggling with high unemployment. pic.twitter.com/e5iFPqgvJy— SABC News (@SABCNews) June 9, 2025
Not far from Goodyear, Fisher Engineering and Housing has shut its doors over 50 years after its establishment.
One of the employees, Tommy Jakobus says this will affect his daily life.
“It’s very bad on the retrenchment side because it has a heavy impact on myself financially. I am the sole provider in the house. I still have children in school, so it’s really bad,” says Jakobus.
The Eastern Cape government insists it is not too late, unveiling plans to attract investment and protect jobs.
Eastern Cape Premier Oscar Mabuyane says there is still room for improvement in the economy of the Eastern Cape.
“Government must come in quite handy in terms of creating a conducive environment and turn this around. We must be agile. We have spoken about building a developmental and ethical state; that’s what we need. If we are sluggish we are going to be left behind but I’m quite positive. The Eastern Cape must stand up. We are showing potential to stand up and be counted amongst the growing economies in the country,” says Mabuyane.
As these factories shut down, the human cost continues growing, a major concern for those who have to support their loved ones.
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