Confidence in the economy is popping up as a THIRD of companies that received JobKeeper say they may need to close once subsidy expires
- Many more companies in NSW think the economy is getting weaker than stronger
- Many were sustained during the pandemic by JobKeper payments for staff
- The program ended two weeks ago and now a third says they can’t afford to stay open
Business confidence in NSW declined in the first quarter of the year, with the end of JobKeeper having an impact.
The most recent survey of Business NSW’s operating conditions, conducted in March, found that more companies viewed the economy as weaker (39 percent) than stronger (29 percent).
Nola Watson, CEO of Business NSW, said the data from both companies in metropolitan and regional areas was “alarming, but not totally unexpected.”
“About a third of the companies that have received JobKeeper think they may have to temporarily or permanently close their business when the full benefits of the program cease,” Ms Watson said Thursday.
One-third of companies in NSW who have gotten JobKeeper think they may need to close, temporarily or permanently, when the full benefits of the program cease
This survey found that companies had not embraced JobMaker, with only one percent of respondents saying they had taken advantage of the scheme.
‘The government should review the JobMaker program to understand why it is not good enough and reinvest unused resources in supporting demand-driven initiatives that we know work, such as the recently expanded and expanded Boosting Apprenticeship cCommencement initiative,’ said Mrs. Watson. .
The survey found that an increasing number of companies were looking to reduce capacity, with 40 percent of companies prioritizing downsizing in the March 2021 quarter, compared to 30 percent in the previous quarter, Ms. Watson said.
A study found that more companies viewed the economy as weaker (39 percent) than stronger (29 percent)
“For many companies, 2021 will be about regrouping and restoring their customer base and workforce capabilities,” she said.
‘Tighter restrictions and higher costs make it more difficult to keep afloat, with solvency becoming less manageable for 32 percent of companies, 10 percent higher than in the last quarter of 2020.
“Many major cost indexes are up from the previous quarter as support programs have been further scaled down,” she said.
The index of wages and benefits and other personnel costs continued to rise, with nearly half (50 and 47 percent, respectively) of respondents reporting that these costs were becoming less affordable.