Startling new figures reveal the real reason why bosses can’t get staff as the ‘great resignation’ arrives in Australia
- Australian Bureau of Statistics revealed 31 per cent of bosses can’t get staff
- Big corporations had even more trouble with 66 per cent of them struggling
- CommSec senior economist Ryan Felsman said ‘great resignation’ happening
A third of businesses are struggling to recruit staff as too few job seekers apply for positions, proof that the ‘great resignation’ phenomenon is also happening in Australia.
With unemployment at a 48-year low of 3.9 per cent, bosses aren’t getting enough applicants when they advertise with job seekers now more interested in being able to work from home.
The Australian Bureau of Statistics on Thursday revealed the extent of the problem with 31 per cent of businesses surveyed by them in June struggling to find suitable staff.
A third of businesses are struggling to recruit staff as too few job seekers apply for positions proving the great resignation is happening in Australia (pictured is a waitress in Sydney)
Hospitality venues were particularly struggling with more than half or 51 per cent having difficulty filling roles.
Minimum wage rise at a glance
A 5.2 per cent increase from July 1
That equates to $812.60 a week – an increase of $40
The $21.38 an hour rate marks an increase of $1.05
New minimum pay of $42,255 a year for those working full-time – up $2,080 from $40,175
The increase was above the 5.1 per cent inflation rate and was the most generous since 2006 during the mining boom
It was more than double last year’s 2.5 per cent increase
The decision to award a 5.2 per cent minimum wage increase directly affects 180,000 workers
The other low-paid workers on modern awards are getting a 4.6 per cent increase if they earn more than $869.60 a week and will get $40 more a week
Big corporations were having the most trouble with 66 per cent of them unable to properly recruit, compared with 62 per cent for medium-sized firms and 29 per cent for small businesses employing less than 20 people.
Almost eight in 10 businesses, or 79 per cent of them, reported having too few applicants while 59 per cent of employers cited applicants lacking the necessary skills or qualifications.
CommSec senior economist Ryan Felsman said a shift was underway with 644,300 Australians changing jobs or seeking a new position in May – a level not far off November’s record high of 709,500.
‘The data suggests that Australia’s own version of the “great resignation” is well underway, with the pandemic likely contributing to a change in worker behaviours and preferences,’ he said.
The great resignation is an economic trend identified in the U.S. in early 2021 in which employees resigned from their jobs in large numbers for a range of reasons, including a desire to work remotely.
The survey found larger employers were more likely to offer pay rises to attract new staff with 49 per cent of big and medium businesses nominating this as a goal, compared with just 29 per cent of small businesses.
A third or 34 per cent of business were letting staff work remotely this month but 71 per cent of big corporations – employing 200 or more people – were allowing this.
A quarter of businesses, or 24 per cent of them, noted job location was an issue for their inability to recruit, marginally behind pay and conditions on 26 per cent.
Australia’s unemployment rate in May remained steady at 3.9 per cent – the lowest since August 1974 even though the Reserve Bank raised interest rates for the first time since November 2010.
The ABS telephone survey was taken during the second and third week of June when the Fair Work Commission announced a 5.2 per cent increase in the minimum wage – the most generous in 16 years.
The Australian Bureau of Statistics on Thursday revealed the extent of the problem with 31 per cent of businesses surveyed in June struggling to find suitable staff