Businesses say more is needed to bring workers back to city

Top industry groups say an ongoing three-day working week will cripple city businesses as the quietest days in Melbourne’s CBD are revealed.

Mondays and Fridays are the most popular days to work from home, with city workers opting to give themselves a long weekend away from the office.

But leading industry groups have warned that an ongoing three-day working week will cripple city businesses, who are still yet to fully bounce back from tough Covid restrictions.

Data from the Property Council of Australia has revealed that Melbourne’s office occupancy rates are relatively steady at about 36 per cent.

However, this figure plummets to just 19 per cent on Mondays and Fridays, while peaking at 42 per cent on Wednesday.

Monday is also the quietest day of the public transport network, according to new figures from the Department of Transport which revealed about 797,000 people were on metropolitan trains and trams, 17 per cent lower than Thursday, the working week’s busiest day.

The statistics from March 15 to May 13 showed that Tuesday was the next quietest day with 876,000 train and tram passengers, then Friday (904,000), Wednesday (922,000) and Thursday (933,000).

The Monday commuter figure is still just 53 per cent of pre-pandemic levels. Even the busy Thursdays were a mere 63 per cent of the 2019 numbers.

Monday is the quietest day on the public transport network. Picture: Ian Currie

Monday was also a quiet day for metropolitan buses and V/Line trains.

Foot traffic around Flinders Street Station last week was just 46 per cent of pre-Covid levels on Monday, rising to 54 per cent on Thursday.

Friday proved the busiest day with movement levels at 57 per cent compared to before the pandemic, however the data also factors in night-time movement.

Property Council of Australia Victoria director Danni Hunter said Melbourne was trailing behind the other capital cities in office occupancy.

But Ms Hunter said there was an opportunity for business and government to “revolutionise the experiences on offer” that draw people into the CBD.

“Mondays and Fridays are the quietest days in the city as more people choose to work from home on those days,” she said.

“What we need to do is find ways to give people choice in the experiences that attract them into the city.”

Opposition CBD recovery spokesman David Southwick called on the Premier to implement incentives to entice workers back into the city.

“It’s time (Daniel Andrews) shows some leadership...whether it’s introducing rostering measures so workers come in across the whole week or incentives,” he said.

“We’re seeing small businesses in the city really struggle to make ends meet.

Foot traffic around Flinders Street Station last week was just 46 per cent of pre-Covid levels. Picture: Ian Currie

“They have not recovered from Covid lockdowns — we desperately need a plan to get people back into the office.”

The Liberal MP said the CBD that was once the “most liveable city in the world” had turned into a “city no one wants to work in”.

Victorian Chamber of Commerce and Industry chief executive Paul Guerra said workers were opting to spend the colder mornings at home.

“The return to the office remains slow, exacerbated by the colder weather, as workers choose the comfort of home over the commute into the city,” Mr Guerra said.

“Our business leaders must continue to look for ways to get a true hybrid model of some days in the office and some days at home operating effectively.”

Restaurant and Catering Australia CEO Wes Lambert said the Monday to Friday office worker customer base had potentially begun to decline in recent weeks, making it difficult for hospitality venues to turn a profit.

“This, combined with their own staff shortages is certainly making a full recovery difficult for the city that was hardest hit during the pandemic,” Mr Lambert said.

“Many businesses are reporting they are now having to rely on price-fixed menus and reduced trading days and hours to come close to achieving any sort of profit. This is not sustainable in the long run with CBD rent in Melbourne among the highest in the country.

“Ultimately, it will take a continued collaboration of the Melbourne City Council, the state and federal governments to ensure that small businesses in Melbourne and other CBDs are not left behind in the potentially permanent shift to a hybrid working environment.”