Business SA survey shows SA businesses worried about rising unemployment, labour costs, electricity prices

MORE than half of South Australian business owners expect the state’s unemployment rate to rise in coming months, the latest Business SA confidence survey shows.

MORE than half of South Australian business owners expect the state’s unemployment rate to rise in coming months, the latest Business SA confidence survey shows.

Released today, the survey of almost 200 business owners in South Australia also found that about two thirds expected to pay more to keep and recruit workers and many feared profitability would fall.

There was more confidence about the value of the Australian dollar and the inflation rate remaining stable.

Business SA’s Survey of Business Expectations for the June quarter was taken within weeks of the delivery of the State Budget on June 22 and encompassed a period of rising electricity prices and an increase to the minimum wage from July 1.

About half of respondents were small business and about a third medium-sized operations. South Australia’s unemployment rate is 6.2 per cent.

Business SA chief executive Nigel McBride said the survey showed businesses were struggling with spiralling costs and that confidence had “taken a dive”.

“Overheads are escalating because business conditions are worsening, profits are falling and there are genuine fears that conditions may well worsen,” he said. “We need to grow confidence and improve economic conditions in this state.”

The survey found:

56.7 PER CENT of respondents expected the unemployment rate to rise.

12.8 PER CENT tipped the South Australian economy to strengthen over the next 12 months, compared to 30.8 per cent for the national economy.