The Labour Recruitment and Provision of Staff Industry in South Africa in South Africa 2024

Challenges

Increasing number of skilled and qualified professionals are working remotely for global organisations, adding to the local skills crisis. Low levels of education among youth. Skills mismatch. Slow economic growth resulting in low business confidence and less recruitment.

Introduction

South Africa’s recruitment and staffing industry is experiencing challenges and opportunities. Low GDP growth, high unemployment and limited company expansion have a significant influence on the need for hiring and staffing services. South Africa has high unemployment and skills mismatches, and the economy did not grow at sufficient levels to realise meaningful job creation over the past two decades. South Africa has the highest unemployment rate in the world. Over half the working age population have educational qualifications below Grade 12. Recruitment agencies reported in 2023 that companies faced the toughest business environment since 2020, which reduced the demand for their services as many companies tried to contain costs.

Opportunities

Demand for recruitment specialising in high demand jobs. The gig economy offers opportunities for people without qualifications. The growing focus on renewable energy sources is expected to increase demand for green energy professionals.

Outlook

The race between companies vying to secure the best candidates is intensifying. Recruiters are expected to continue facing a shortage of suitable candidates. Although there is significant demand for skilled people in certain sectors, many companies have been recruiting less due to challenging business conditions. The country is losing skills to emigration as well as people who are staying but working remotely for global companies. Recruitment companies are expected to focus more on gig economy jobs.

Report Coverage

This report on labour recruitment and the provision of staff in South Africa includes information on the state of employment, sectors that are recruiting, trends in hiring approaches, challenges faced by recruiters and the notable industry players. There are profiles of 20 companies including major groups such as Adcorp, ADvTECH and Workforce Holdings, industry players such as Mindcorp, Primeserv, SET Recruitment Consultants and Kempston Investments, and employment initiatives such as Harambee Youth Employment Accelerator.

Trends

Adoption of a skills-based hiring approach. Companies are investing in training to bridge skill gaps and promote retention. Growing demand for flexible work opportunities. Hiring practices are changing to create a more inclusive workplace. Increasing use of technology. Jobs in the gig economy are increasing.