Employers cautious about hiring in 2021

South African employers are cautious about hiring in the first part of 2021 says the ManpowerGroup’s latest Employment Outlook Survey.

Just over 10% of employers say that their payrolls will grow while another 9% anticipate a decrease; 76% don’t expect to make any changes.

The survey says overall hiring sentiment is more favourable than the previous quarter, which has improved by 14 percentage points.

However, hiring prospects are unchanged as the Outlook returns to pre-COVID-19 levels following consecutive gloomy forecasts.

“The South African economy is showing signs of some recovery, at least on the employment outlook front. Smaller businesses are still struggling; however, larger companies are showing positive employment growth.

“Employers are adjusting and adapting more easily, and taking advantage of new ways of doing business,” says Lyndy van den Barselaar, Managing Director of ManpowerGroup SA.

The most robust hiring prospects are in Gauteng which moderate sentiment for the Western Cape and Eastern Cape., Employers in Free State and KwaZulu-Natal expect to trim back payrolls.

“With international travel and trade severely restricted by the global pandemic, many sectors such as tourism, remain subdued. It has had a significant impact on regions that focus heavily on any one sector.”

The most robust hiring prospects are in finance & business services, followed by manufacturing.

Elsewhere, employers in the wholesale & retail trade sector and the other-production sector forecast limited hiring activity.

Employers in the other-services and restaurants & hotels sectors expect flat labour markets.

However, construction sector employers anticipate a gloomy hiring climate which is likely to fall by about 12%.