While signs show that the post-pandemic “Great Resignation” era may have passed its peak, with job advertisements declining in the second half of 2022, vacancy rates still remain at levels not seen since the GFC. [1] New concerning research commissioned by business loan comparison site Small Business Loans Australia reveals that the labour-shortage struggle is not over, with more than two-thirds of businesses grappling to find staff.
The survey comprised an independent panel of 210 business owners or senior decision-makers across the full SME spectrum of micro, small and medium-sized businesses.
Almost 80 per cent of micro-businesses are unable to find staff.
According to Small Business Loans Australia, businesses of all sizes have been significantly impacted by the difficulty of finding suitable staff. Among them, micro-businesses have faced the greatest challenges, with 79 per cent of respondents struggling to fill job vacancies. Although 21 per cent of micro-businesses believe that 2023 has been comparatively easier for staff recruitment compared to the previous year, the survey results present a different picture for small and medium-sized businesses. In fact, the findings indicate that the situation has continued to worsen for a significant portion of these businesses in 2023, with 29 per cent of small businesses and 27 per cent of medium-sized businesses reporting ongoing difficulties in finding qualified employees.
The results reveal the impacts of the labour shortage being felt nationally, with similar rates of difficulty indicated across the majority of major Australian States. Western Australia has the highest number of businesses struggling to fill staff roles (76%), followed closely by ACT (75%). Queensland and Victorian businesses are also struggling, with 73 per cent experiencing the same level of difficulty, or more, than in 2022. ACT business reported more difficulty finding staff than last year (50%) compared to WA (33%), NSW (29%), VIC (28%) and Queensland (20%). Conversely, 80 per cent of South Australian businesses found it easier to employ new staff in 2023, than in 2022.
Labour shortages are having the most impact in the private sector, with more than 90 per cent of the 480,000 job vacancies this time last year, belonging to private companies. Businesses in the health and tech industries have experienced some respite, with 56 per cent and 65 per cent, respectively reporting it as easier to fill vacancies than in 2022. Meanwhile, more than 80 per cent of hospitality businesses, which typically experience high turnover rates and are dependent on casual staff, continue to struggle to fill roles at the same rate, or worse, than in 2022. By far, the worst affected industries are manufacturing and agriculture, where 94 per cent and 100 per cent, respectively are unable to fulfil staff vacancies.
Alon Rajic, Founder and Managing Director of Small Business Loans Australia, says: “The problem of finding staff is nationwide, and can be attributed to a combination of factors, including burn-out among working-age Australians and changes in employment law, including increased minimum wages. SMEs appear to be hit hardest, which is concerning as they constitute the vast majority of the Australian business market.”
“Employers should alter their expectations when hiring new staff, and instil operational changes, which will change how their current employees work, such as adopting time-saving automation where possible in their day-to-day business.”
The full survey results, including breakdowns across business sizes and States, can be found here: https://smallbusinessloansaustralia.com/sme-employees-2023/