The latest data shows unemployment in South Australia declined from 4.3 per cent to 4 per cent in July. Although still the highest in the country, it is only marginally lower than the national average at 3.4 per cent, itself a historical low since 1974.
The low unemployment rate is a concern for the business community that continues to struggle to find workers. We know this because in the June Quarter The South Australian Business Chamber and William Buck Survey of Business Expectations 70 per cent more businesses told us that they struggled to find staff compared to the March Quarter. In fact, this was the number two issue keeping business operators awake at night. Businesses listed workforce fatigue and the mental well-being of the workforce as number seven and eight, respectively. All of these concerns are attributable to the tight labour market, with business owners and their staff working longer and harder as a result.
At the national level, the upcoming Jobs and Skills Summit on 1 and 2 September intends to open discussion about these challenges. The South Australian Business Chamber has met with Premier Peter Malinauskas already to highlight the needs of our business community so he can represent South Australia at the meeting. We will continue to play an active role to represent our members and the broader South Australian business community, including submitting to the upcoming employment white paper
In addressing these challenges, there are two immediate priorities: skilling Australians and increasing the skills pool through migration. In the short-term, targeted skilled migration is a measure we will need to rely on to provide employers with a larger labour market to choose from.
Skilling Australians is a long-term undertaking which will mean close alignment between what industry needs and what our universities and VET sectors are delivering.
As we work through this increasingly challenging labour market, businesses should be supported. Our members are also facing escalating costs, including inflation, insurance, transport, energy, interest rates, fuel and materials, in addition to wage increases of 4.6 per cent (through the annual wage review), superannuation increases of 0.5 per cent and ReturnToWorkSA premium rises. While there is no easy fix, supporting local businesses is the best way we can help.
