The real reason bosses in Australia can’t get staff as the great resignation happens in Australia
Surprising new numbers reveal the real reason bosses can’t get staff as the ‘big layoff’ arrives in Australia
- Australian Bureau of Statistics revealed 31 percent of bosses can’t get staff
- Big companies had even more problems with 66 percent of them struggling
- CommSec senior economist Ryan Felsman said ‘big layoff’ is happening
A third of companies are struggling to recruit because too few job seekers are applying for positions, proof that the ‘big layoff’ phenomenon is also happening in Australia.
With an unemployment rate of 3.9 percent at its lowest point in 48 years, bosses aren’t getting enough applicants when they advertise to job seekers who are now more interested in being able to work from home.
Australia’s Bureau of Statistics on Thursday revealed the magnitude of the problem: 31 percent of the companies they surveyed in June are struggling to find suitable staff.
A third of companies are struggling to recruit as too few job seekers are applying for positions showing the major layoffs are happening in Australia (pictured is a waitress in Sydney)
Catering establishments in particular had a hard time, more than half or 51 percent had difficulty filling positions.
Minimum wage increase at a glance
Up 5.2 percent from July 1
That equates to $812.60 a week – an increase of $40
The hourly rate of $21.38 marks an increase of $1.05
New minimum wage of $42,255 per year for those who work full-time – $2,080 over $40,175
The increase was above 5.1 percent inflation and was the most generous since 2006 during the mining boom
It was more than double the 2.5 percent increase last year
The decision to grant a 5.2 percent minimum wage increase will directly affect 180,000 workers
The other low-paid workers with modern awards get a 4.6 percent increase if they earn more than $869.60 per week and get $40 more per week
Large companies had the most problems with 66 percent of those unable to recruit properly, compared with 62 percent for medium-sized companies and 29 percent for small companies with fewer than 20 employees.
Nearly eight in 10 companies, or 79 percent of them, said they had a shortage of applicants, while 59 percent of employers cited applicants who lacked the necessary skills or qualifications.
CommSec senior economist Ryan Felsman said a shift was underway with 644,300 Australians switching or seeking a new job in May — a level not far from the record high of 709,500 in November.
“The data suggests that Australia’s own version of the ‘great layoff’ is well underway, with the pandemic likely to contribute to a change in worker behavior and preferences,” he said.
The large layoff is an economic trend identified in the US in early 2021 that saw workers lay off in droves for a variety of reasons, including a desire to work remotely.
The survey found that larger employers were more likely to offer wage increases to attract new hires, with 49 percent of large and medium-sized companies nominating this as a target, compared to just 29 percent of small companies.
A third or 34 percent of companies allowed their staff to work remotely this month, but 71 percent of large companies — employing 200 or more people — allowed it.
A quarter of companies, or 24 percent of them, noted that job location was an issue because of their inability to recruit, slightly behind pay and terms of 26 percent.
The Australian unemployment rate held steady in May at 3.9 percent – the lowest since August 1974, although the Reserve Bank raised interest rates for the first time since November 2010.
ABS’s telephone survey was conducted in the second and third weeks of June, when the Fair Work Commission announced a 5.2 percent increase in the minimum wage — the most generous in 16 years.
Australia’s Bureau of Statistics on Thursday revealed the magnitude of the problem: 31 percent of companies surveyed in June struggled to find suitable staff.