• 29/02/2024

Businesses in Australia Concerned About Recession, 1 in 4 Planning to Reduce Staffing

A recent survey of businesses in Australia has found that 25% of them are planning to reduce their staffing levels in the next six months. This is due to concerns about the possibility of a recession.

The survey, conducted by the Australian Chamber of Commerce and Industry (ACCI), found that businesses are worried about a number of factors, including rising interest rates, inflation, and the war in Ukraine. These factors are all putting pressure on businesses’ profits and making it difficult for them to hire and retain staff.

The ACCI’s Chief Executive Officer, Andrew McKellar, said that the survey results are a “stark warning” about the state of the economy. He said that businesses are “under increasing pressure” and that the government needs to take action to support them.

The government has already announced a number of measures to help businesses, including a temporary reduction in the fuel excise and a $10 billion investment in infrastructure. However, McKellar said that more needs to be done, such as providing targeted tax breaks and grants.

The survey also found that businesses are becoming more cautious about their spending. They are delaying investments and hiring decisions, and they are also being more selective about the customers they serve.

This is a worrying sign for the economy, as it suggests that businesses are expecting a slowdown in growth. If businesses do start to cut back on their spending, it could lead to a recession.

The government needs to act now to prevent a recession. It needs to provide more support to businesses and to encourage them to invest and hire. If the government does not act, the economy could suffer a significant downturn.

Here are some additional details from the survey:

  • The most common reasons for businesses planning to reduce staffing levels are rising costs (44%), a slowdown in demand (38%), and uncertainty about the future (32%).
  • The sectors most likely to be affected by job cuts are manufacturing (35%), retail (32%), and construction (29%).
  • The survey also found that 30% of businesses are planning to reduce their investment in the next six months.

The survey results are a clear warning sign that the Australian economy is facing challenges. The government needs to act now to prevent a recession and to protect jobs.

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