Businesses not employing permanent staff - Commerce body

The Cape Town Chamber of Commerce says companies are reluctant offer people permanent employment.

South Africans are finding it hard to secure permanent employment. Picture: Matshidiso Madia/EWN

CAPE TOWN - The Cape Town Chamber of Commerce on Tuesday said many companies are still not keen to hire permanent employees.

It believes businesses are reluctant to appoint workers on a permanent basis due to financial constraints and the possible change in labour laws.

Since the year 2000, permanent employment in South Africa has fallen by more than 18 percent. It has decreased from 11 million people being permanently employed to around 9.1 million currently.

The Chamber's Michael Bagraim said, "The economy is bad at the moment, most people are weary and worried."

Meanwhile labour law expert Tony Healy said that employers are choosing to hire temporary workers instead.

"We're seeing that employers are increasingly cagey when it comes to making decisions to appoint permanent staff. They are far more interested in looking at temporary-term appointments and also using labour brokers."