# The Cape Chamber of Commerce and Industry’s 2026 Business Environment Survey shows that strict labour legislation and regulatory compliance are among the biggest obstacles to economic growth. The survey of 369 businesses indicates that almost 80-percent of large employers, with more than 200 staff, rated labour laws as a serious constrains, highlighting skills shortages and red tape. Some said employment equity requirements discourage expansion beyond 50 employees. The Cape Chamber says reforming labour rules could help businesses access skills, expand operations and create jobs.
Labour laws flagged as major barrier to business growth