Covid-19 ravaged the South African labour market in 2020, leaving in its wake large-scale devastation.The clearing and forwarding industry was not spared, and continues to feel the pinch, with recruiters forecasting more tough times ahead. “Last year was a very difficult year for many organisations who were not expecting to have to carry costs and expenses for as many months as what transpired,” said Kim Botti, a director at Lee Botti & Associates. “After the initial lockdown many thought it would only be for a period of three months.”The reality was far longer, resulting in many companies having to retrench.“We saw a number of businesses retrenching in the latter part of the year. In instances where retrenchments were avoided, salaries may have been reduced in an effort to lower costs but retain staff,” said Botti.According to Terri Smith, managing director of Tiger Recruitment, not only were retrenchments rife but many companies have also opted not to employ at the moment.“They are not entertaining the possibility of new jobs at present as there is no security as yet in the market.”Government’s decision to reintroduce lockdown level 3 in January did not help the situation.“Many companies have put their recruitment on hold amid high uncertainty,” said Botti.This comes after a slight increase in recruitment was seen in October and November of last year when expectations of an improved new year were high.“Regrettably, with the announcement of level 3 restrictions, many businesses started the new year with caution and apprehension, not sure about how things would go. However, there is a strong drive and desire from business to get back to some sort of normality and consistenc y.”Smith agrees, saying they have managed to place a few of their good candidates who were retrenched last year.According to both recruiters, many candidates are looking for employment, with a vast number available immediately. “Those job seekers who are employed may be looking in an effort to get back to earning what they were previously, or have found that due to reduced number of staff, pressure is left on those remaining. But this is the same with many companies. We have also noted that when companies are appointing, they are seeking the skills, and in many instances have appointed people on salaries less than what they had previously earned, in an effort to keep their costs as low as possible.”Companies were also increasingly looking for people who were available immediately, said Smith. “Not only because the candidate can start sooner, but also because they can take advantage and give a lower salary. At present, employers hold all the bargaining power.”Botti said they remained optimistic that once borders opened again, things would improve.We have managed to place a few of our good candidates who were retrenched last year.– Terri Smith“
