South Africa’s small and medium-sized enterprises (SMEs) are facing mounting pressure from sluggish economic growth, rising operating costs and persistently high unemployment. As companies navigate an increasingly challenging business environment, many are reassessing their hiring strategies to balance growth ambitions with financial sustainability.

Some entrepreneurs say the true cost of permanent employment extends far beyond salaries, prompting a growing number of SMEs to consider more flexible, contractor-led workforce models.

Our Economics Reporter, Innocent Semosa, examines whether recruitment trends can be seen as a key barometer of business confidence and broader economic activity.