Small businesses still hiring, but rate tipped to slow in 2023
Small businesses are still recruiting new staff but at a slower rate, with the full weight of economic challenges likely to be felt in 2023.
(Photo: AAP Image/Tracey Nearmy)
The number of workers employed by small and medium-sized businesses grew 0.1 per cent in the month of November and 7.7 per cent annually.
Employment Hero’s monthly small and medium sized enterprise (SMEs) health check also revealed a stagnation in wages growth over the month despite an 8.6 per cent lift over the year.
Employment Hero chief executive officer and founder Ben Thompson said the index had recorded a few months of stagnant or marginal employee growth.
“There’s no sugarcoating that SMEs have a tough year on the horizon as economic pressures and ongoing supply chain issues take their toll,” Thompson said.
He said demand for talent remained strong despite easing from its peaks.
“It will be interesting to watch how the surge in skilled migrants and the expanded visa policy will help to alleviate these talent shortages and push up month-on-month employee growth,” he added.
Employee growth was strongest in Western Australia, South Australia and the Australian Capital Territory in the month of November.
