Australian SME companies (and Australian Accounting firms) are continuing to struggle to find sufficient resources as labour shortages continue. Many SME companies are reporting labour shortages have been constraining their ability to operate at full capacity. Global supply chain issues are exacerbating supply constraints and prices are escalating with inflation on the horizon.
Staff shortages and wage pressure, as well as state government policies on lockdowns and trade restrictions, have risen to the top of the list of factors affecting corporate confidence this year.
The Australian government has been under pressure to open the borders even more as a result to ease labour shortage. Some positive figures have been revealed: around 7,000 international students were said to have arrived during the first week of January. There was also a 17 percent rise in working holidaymaker arrivals and, 2600 visa applications from international backpackers during the first month of 2022.
Despite the increase in overseas arrivals, many fear that this won’t help fix the Australian labour shortage situation right away.
Labour shortage is happening worldwide, so every country in the world craves for talent, not just Australia. As a result, when Australia is slow to fully open its border, it has accidentally driven away travellers, seasonal workers, and international students to other countries.
Meanwhile, inside Australia, the current spread of Omicron and the close contact protocol have been giving many businesses a hard time. Staff are constantly off-work sick or isolated, making it almost impossible for business to plan and operate at their maximum capacity.
That said, the lack of manpower is not going anywhere in the foreseeable future. So, all businesses should brace themselves for the ongoing crisis and have proper continuity plans. Many firms have increased pay to retain and attract staff while others have turned to outsourcing as a more sustainable solution to ease labour shortage.
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