New research conducted by FRANdata on behalf of the Franchise Council of Australia (FCA) reveals that ongoing staff shortages for franchisee small businesses across Australia are now at a record high.
The September Quarter 2022 Franchise Business Pulse Check survey reveals that the availability of suitable employees has been the most daunting challenge for 83 per cent of small businesses. It is also notable increase from the 80 per cent that was recorded in the July survey, and 64 per cent in March.
Availability of suitable employees for support offices (55 per cent) was again the second largest issue for small businesses, followed by supply chain issues (45 per cent) and rising interest rates and the inflationary pressures. (39 per cent) However, it is noted that fewer small businesses nominated these challenges compared to the July survey – which highlighted the sector’s focus on employment concerns.
Despite these challenges, small business sentiment about the next six months is improving, with 67 per cent feeling optimistic (up from 57 per cent in July), 19 per cent neutral, and only 14 per cent pessimistic.
Year-on-year quarterly trading continues to recover, with 47 per cent of small businesses reporting an increase in their September 2022 quarter income compared to September 2021 of more than 10 per cent.
“Small businesses are the engine of the Australian economy. When they proposer, our country prospers,” FCA CEO Mary Aldred said. “The situation for small businesses across Australia in regards to staff shortages is worsening. We need urgent action at the national level to address this challenge.
“According to ABS data, 698,000 fewer people arrived in Australia in September 2022 compared to September 2019 – a reduction of 39 per cent,” Aldred added. “It is not enough for the Australian border to be open, specific actions to increase the domestic participation rate and the attractiveness of Australia as a destination for international labour are needed.”
