This paper examines the role of small-scale producer cooperatives in reducing unemployment, providing income and food to
rural people of Amathole in the Eastern Cape Province of South Africa. It is widely acclaimed that cooperatives have shown
success in reducing unemployment. An examination was therefore necessary in the context of Amathole district, given rampant
unemployment in this district. The paper relied on secondary data to establish the relationship between co-operatives and
reduction of unemployment. Findings revealed that cooperatives employ worker-members and could not hire employees,
managers and other skilled personnel. Income and food were other notable benefits. The paper recommends that the
expansion and growth of cooperatives can be promoted through the provision of capital resources by the government. This will
enhance cooperative employment creation efforts