One in five firms struggling to find skilled workers: ABS

A survey reveals the challenge facing some firms as the economy recovers, with one in five struggling to hire suitably skilled staff.

Tradespeople were among the skilled workers businesses said they were struggling to find. Picture: Sean Davey.

One in five businesses are struggling to find suitably skilled workers, while almost one in six report not having enough staff.

The latest Australian Bureau of Statistics business impacts of COVID-19 survey, conducted over the week to December 9, highlighted the challenges that some employers face in ramping up their workforce as the economy recovers, despite an additional 245,000 Australians recorded as unemployed in October than before the health crisis.

Businesses reported having difficulty finding suitably skilled tradespersons, hospitality workers and STEM professionals, the report said. Labourers, drivers and managers were also in demand, the survey showed.

Ahead of what are expected to be upgraded employment forecasts in Thursday’s mid-year budget update, the ABS survey showed two thirds of medium (those with 20-199 employees) and large (200 or more employees) businesses planned to take on new staff over the next three months.

 

Small businesses remained more wary, however, with only a third of firms employing fewer than 20 workers flagging they intended to hire over the near term. Similarly, a little over half of medium and big firms expect to retrain or upskill workers, the survey showed, versus a quarter of smaller companies.

Strong signs of employer demand for training and skills bodes well for the Morrison government’s $1bn JobTrainer initiative — half of which will be met by the states and which from October will start funding around 320,000 additional training places.

Corporate confidence has lifted to its highest level since the start of 2018, as the country enjoys a faster than anticipated recovery from the June quarter collapse in activity, but firms are still operating well short of capacity with the economy smaller than it was pre-recession.

Ahead of November labour force statistics on Thursday – which are expected to show the jobless rate steady at 7 per cent – one in ten businesses reported an increase in the number of employees in December, the ABS report said.

The experience varied widely according to size, with medium-sized businesses saying they were three times as likely as small businesses to report an increase in the number of employees, at 30 per cent compared to 10 per cent.

Segments of the economy hit hardest by restrictions reported having the most trouble finding the right workers as their operations continue to ramp back up. A third of hospitality firms and those providing “other services” – such as hairdressers and repair and maintenance services – reported trouble finding the right workers.

Three in 10 businesses in the arts and recreation, mining and manufacturing sectors also said they struggled to get the right staff.

In contrast, only 7 per cent of retailers reported issues, while firms in the IT, professional services and financial industries were the next least affected by skills shortages, with 13-14 per cent saying it was a concern.

The survey also showed the proportion of businesses reporting improved revenue in December was broadly steady at 25 per cent, after jumping from 16 per cent in the October survey to 24 per cent in November. One in five firms reported a decrease in revenue in the latest survey, slightly down from November, and well down from the nearly one in two in July.

Ahead of the summer holidays, more companies said they expected revenue to fall over the coming month – to 27 per cent from 10 per cent expecting a fall in November. But sectors geared to the Christmas season were more positive: 40 per cent of retailers expected turnover to lift in the coming months, and 36 per cent of arts and recreation services.