This report focuses on Labour Recruitment and the Provision of Staff, including the state of the sector and employment, performance of major players, and factors that influence the sector. There are profiles of 17 companies including significant players such as Adcorp and Workforce Holdings. Other profiles include medical staffing company Ambition 24 Hours and executive search companies such as Mindcor and People Perfect.
Labour Recruitment and the Provision of Staff
The labour recruitment industry plays a significant role in the South African economy. The unemployment rate of 29.1% is at its highest level since comparable data was first recorded in 2008. According to Stats SA approximately 40.1% of South Africa’s 20.4 million young people aged 15 to 34 are not in employment, education or training of any sort. The Confederation of Associations in the Private Employment Sector (Capes) represents more than 1,200 independent staffing businesses and more than 10,000 employees.
The Temporary Employment Services Industry
Despite continued pressure from trade unions that want to end the practice of labour broking, clients and temporary employment services have remained firm in defending the rights of business to retain the flexibility that they say is essential especially in tough economic times. In 2019, there were several decisions, from the Commission for Conciliation, Mediation and Arbitration, the Bargaining Council and the Labour Court, confirming the legitimacy of temporary employment services.
South Africa’s hiring outlook is bleak, especially for small and micro enterprises. Opportunities for job seekers are expected to be strongest in the finance, insurance, real estate and business services sectors. Industry players indicated that businesses were proceeding with caution on their spending and hiring strategies. A major player said that the economy is generally absorbing only one in two potential workers, and if the economy did not improve, the unemployment rate would increase.