Labour Recruitment and the Provision of Staff in South Africa 2025

This report on labour recruitment and staff provision in South Africa includes information on job and unemployment statistics and trends, the largest employers, jobs by sector, and hiring activity. It discusses several issues, including skills challenges, the employment of foreigners, overseas and remote work, temporary work, CV fraud, job scams, and the impact of AI. There are profiles of 23 companies including major players such as Adcorp, ADvTECH and Workforce, recruitment marketplaces such as OfferZen, sector-specific players such as Ambition 24 Hours and Marine Crew Services, and entry-level organisations such as Harambee Youth Employment Accelerator.

Challenges

AI will lead to job losses, while also creating new job roles. Fraudulent CVs has become an increasing problem, particularly in government. Increasing number of skilled and qualified professionals are working remotely for global organisations, adding to the local skills crisis. It is difficult to hire foreigners to fill scarce skill jobs in the country. Job scams are growing in number. Skills mismatch. Slow economic growth resulting in low business confidence and less recruitment. The government is considering quotas in certain sectors when hiring foreign workers.

Introduction

• The recruitment and staffing industry continues to be affected by low economic growth and high unemployment.
• This has been compounded by a high skills mismatch and a slowdown in hiring since 2024.
• AI is expected to make several job types redundant while creating demand for new kinds of roles.
• Return to the office is replacing hybrid work arrangements.
• Offshoring has become a popular trend, along with the increased use by employers of temporary employment relationships involving contractors, freelancers and casual workers.

Opportunities

Demand for recruitment specialising in high demand jobs, particularly those linked to AI skills. Providing remote work and other perks for mental health benefits and lure top people. The gig economy offers opportunities for people without qualifications. The offshoring trend will drive demand for local recruiters to serve as employers of record. The provision of temporary employment services.

Outlook

• Local hiring has slowed and is expected to remain limited due to poor economic growth.
• Demand for temporary employment services and offshoring is likely to continue as companies reduce staff costs, and as local candidates seek remote offshore opportunities due to limited local job opportunities.
• Technology is helping to lower costs and reduce the time spent on tasks at recruitment companies.
• New employment equity regulations, which are being challenged in court, could make hiring and recruitment more cumbersome, incentivise employers to hire temporary staff and increase demand from candidates for offshore jobs.
• This could provide opportunities for recruiters that offer offshoring and temporary employment services.

Trends

A number of large employers have recently announced job cuts, while hiring has slowed amid an almost decade-long slowdown in economic growth. Companies are shifting to inhouse recruitment, which has affected recruiters. Foreign jobs are becoming more popular through offshoring or emigration. Gig and freelance work, as well as contract or causal work is growing. Growing demand for skills linked to AI. Increasing use of social media to market vacancies, source candidates and build employer brands. Jobs in finance and community and social services have increased their share while trade, manufacturing and domestic work have shrunk. Remote and hybrid work. Shift by recruiters toward skills-based hiring, with less focus on degrees than on what candidates can actually do.