Many small businesses are holding off on hiring in January as slow trading conditions continue to strain cash flow, despite hopes that the new year would bring relief after a difficult festive season.
Across retail, services and light manufacturing, SME owners say revenue has not rebounded strongly enough to justify taking on new staff, particularly with fixed costs such as rent, electricity and supplier payments already absorbing limited income.
Soweto-based clothing retailer Lerato Ndlovu said foot traffic has been thinner than expected since schools reopened.
“January is usually about rebuilding after December, but this year the money is not moving,” she said. “I would like to hire extra help, especially on weekends, but I cannot commit to salaries when sales are unpredictable.”
Similar caution is emerging among service-based businesses. Pretoria car wash owner Kabelo Molefe said he has delayed plans to bring on two additional workers. “People are still washing cars, but not as frequently as before,” he said. “I have to make sure I can cover wages every month, not just when business is good.”
Economist Lumkile Mondi said weak January hiring reflects broader pressure on household spending. “Consumers are prioritising essentials and debt repayments early in the year, which slows turnover for small businesses,” he said. “For SMEs, labour is one of the most flexible costs, so hiring tends to be postponed until revenue stabilises.”
According to Statistics South Africa’s latest Quarterly Labour Force Survey, employment growth remains uneven, with small enterprises accounting for a significant share of informal and semi-formal jobs. Analysts say delays in SME hiring have a knock-on effect on local employment, particularly in townships where small businesses are major employers.
KwaZulu-Natal-based catering business owner Sibusiso Hlongwane said January bookings are covering costs but not allowing expansion.
“I am working with my existing team and using casual help only when I have confirmed orders,” he said. “Until contracts are secure, permanent hires are risky.”
Business support organisations say many SMEs are using January to stabilise rather than grow.
National Small Business Chamber spokesperson Mike Anderson said small firms are being conservative after absorbing rising costs throughout the past year. “Electricity, transport and supplier prices have all increased. Hiring will only resume once turnover becomes more predictable,” he said.
Despite the caution, business owners say the delay is not permanent. Many expect hiring plans to be revisited later in the first quarter if consumer spending improves.
lazola@vutivibusiness.co.za
