Mluleki Mrwebi
A study released by Adcorp shows that more than 500 labour broker agencies have closed down since the government began clamping down on the businesses.
The Congress of South African Trade Union has been at the forefront, calling for labour brokers to be banned.
An Economist Loane Sharp said this follows draft legislation which limits the period for which temporary workers can be employed.
Sharp said that the view of new rules, combined with a weak economy, has sent many agencies into decline.
He added that many companies do not want to employ new staff.
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