The September results of South Australia’s longest-running business survey are out, and business confidence has had an optimistic bump this quarter. The Business Confidence index in the South Australian Business Chamber William Buck Survey of Business Expectations is up 11.8 points to 86.7, but there is still a long way to go to get out of negative territory.
The South Australian Business Chamber Chief Executive Andrew Kay highlights that this quarter has revealed more about what skills the South Australian business community needs.
“The lack of labour is not ‘new’ news. What we now know is that 32.2 per cent of vacancies demanded by business require technical skills through vocational education, and nearly 30.2 per cent of roles need only high school completion.
“Almost a quarter of vacancies are looking for workers with an undergraduate degree. And the good news is that many of our international students are returning to Australia. The likelihood of getting a job is a priority when they choose where to study, so this is a real opportunity for Adelaide.
“As announced in the recent Federal Budget, the relaxation of work restrictions for student visa holders and secondary training visa holders has been extended until 30 June 2023 which will enable them to stay longer in Australia. This gives businesses more certainty when looking to employ this cohort.
“We’ve discovered more about the labour shortage in the September quarter of the South Australian Business Chamber William Buck Survey of Business Expectations. 70% of businesses are still experiencing labour shortages, with the main reason being simply a lack of available people (75%). Lack of skilled workers comes in next at 55%.
“More than 40 per cent of businesses had considered hiring an international worker, however the comments told us how challenging this can be. If the visa process is complex even for large corporates to negotiate, it can be a bridge too far for the small business operator.
“In other positive news, businesses have reported an increase in sales and revenue and over a third expect their total sales and revenue to increase again in the December quarter. We hope this is a combination of ongoing customer demand as well as businesses taking the initiative to pass on their internal price increases. However, business proftibality is still a key concern with little positive movement.
“There was a slight easing in the number of businesses expecting costs and overheads to increase, however these inputs still remain high with in excess of 70% of businesses expecting the number to go up.”
About the South Australian Business Chamber William Buck Survey of Business Expectations
The South Australian Business Confidence Index and Business Conditions Index are our two key metrics of business sentiment. The Confidence Index is a forward-looking index and reflects the business sentiment and expectations of the economy over the next 12 months. The Conditions Index is a more reflective index which asks businesses on the quarter they just experienced.
