New South Wales Businesses Anticipate Workforce Reductions Amid Economic Challenges

New research released by Business NSW has revealed that nearly a quarter of businesses across various industries in New South Wales (NSW) are planning staff reductions in the next three months.

The study, encompassing 1,000 companies in NSW, reflects the ongoing challenges faced by the state’s businesses.

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The findings show that 62 per cent of the surveyed companies plan to maintain their current staffing levels, and only 15 per cent anticipate hiring additional workers.

Despite multiple interest rate increases since last May, the unemployment rate in NSW remains at a historical low.

Data from the Australian Bureau of Statistics (ABS) revealed that in July, the unemployment rate rose by 0.2 percentage points to 3.7 per cent. Business confidence in the region is reportedly “deep in negative territory”, reflecting the uncertainties stemming from evolving customer behaviour post-COVID-19.

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One significant concern for employers has been the decrease in workers commuting to the Sydney Central Business District.

Business NSW chief executive Daniel Hunter said a multi-speed business environment had emerged in which some enterprises expected to shut down.

“While the worries about interest rates are subsiding, consumer’s reluctance to spend remains a key risk to the business outlook.”

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