Business outlook: prepare for the new financial year

2022 has been a big year.  

International borders opened up, Labor overthrew the Coalition to form government, the unemployment rate hit a fifty-year low, and domestic COVID-19 cases are now hitting historic highs.  

All of these events have left the economy and the larger working landscape in a very different spot to where it was at the beginning of the year. 

So, in a year where things are changing so rapidly, what do the next six months look like? As a business owner, how can you best prepare for this financial year? Well, we whipped out our crystal ball, and tried our best to see what the back half of 2023 will bring. 

1. Lower unemployment; a blessing and a curse 

The Australian unemployment rate is sitting at just 3.5%, the lowest it’s been since 1974. That’s great news for jobseekers… but may have an adverse effect for business owners.  

Currently the job vacancy rate is nearly equal to the jobseeker rate, and that means less competition for jobs. It also means if jobs aren’t getting filled, some industries are getting hit, hard, with worker shortages.  

According to the Australian Bureau of Statistics, the most common factors contributing to difficulty filling jobs is a lack of job applications, followed by those applicants not having relevant experience and qualifications.  

The ABS have identified actions businesses can take to combat these issues, including but not limited to: increasing wages/salaries, re-training existing staff and re-arranging job roles and responsibilities.  

Another avenue for employers is tapping into the potential of alternate workforces. We can work with you to find the right fit for your role, from a skilled, diverse pool full of jobseekers keen to take on their next opportunity. You can find our complete range of employment services here

2. Hospitality and tourism industries still bearing the brunt  

It should be no surprise that some industries are being hit by worker shortages harder than others.  

Hospitality and tourism are two seeing above average shortfalls; these are industries that rely heavily on backpackers and travellers to fill their workforces. 

Recent studies by Edith Cowan University expect a ‘lag effect’ to take its toll on returning temporary visa holders and backpackers, which could last well into 2023. Australia’s reputation as a global leader in its COVID-19 response, has also led to a reputation that is strict on travellers, and could in part be to blame for their declining numbers. 

For employers and businesses who can’t wait for the influx of international workers to meet staffing needs, there are a range of domestic jobseekers who are capable and ready to join the workforce now. We can work with you to find the right fit for your role, from a skilled, diverse pool full of jobseekers ready to rejoin the workforce. Alternatively, apprentices and trainees are an effective option for businesses looking to fill short-term roles or nurture a long-term employee.  

3. Support jobs in high demand 

Individual support is another industry being hit by nation-wide shortages. The Committee for Economic Development of Australia estimates the number of direct aged care workers is now 35,000 employees a year short of what is needed, and disability workers are experiencing similar shortages. 

The new federal government is still in its infancy but campaigned on a platform that included addressing systematic shortfalls in the disability support sector. A formal review into the National Disability Insurance Scheme has already begun, with the government committing to more funding to the sector and improved employment outcomes for Disability Employment Services participants. 

As the support industry recovers, qualifications will be crucial for jobseekers. Whether you’re looking to re-train current staff, or know someone who’s suited to the career, My Pathway training could be a viable option. 

If you would like more information on the training courses that My Pathway offers, visit our training page or contact us to find out more.

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