/ 7 November 1997

Survey finds businesses hiring less

FRIDAY 10AM:

The owners of small and medium-sized businesses are “deeply pessimistic” about the cost, low productivity and general hassle factor of the low-skill labour market, according to survey results announced on Thursday by the South African Institute of Race Relations.

The survey, conducted among 300 businesses, found the rate of unemployment 6% lower than the official 30% figure; businesses are still hiring, but at a lower pace than ever before. The labour force increased 21% between 1991 and 1996, but salary costs soared 59%.

Presenting survey results, Professor Laurence Schlemmer said the Basic Conditions of Employment Bill, which improves workers’ conditions, is likely to have a severe effect on the hiring practices of small and medium-sized firms.