Economy

Employment optimism is dwindling as are local job prospects, as a new survey reveals a decline in the number of businesses looking to hire employees for the next quarter.

The unemployment rate has risen by 0.2 percent, but labour force participation has reached new height, with more Australians in full-time work than ever before.

Despite business confidence continuing to fall as a result of weak consumer spending, half of SMBs remain optimistic about their ability to ride out the tough times, a new report has found.

The Reserve Bank of Australia (RBA) has cut the official cash rate by .25 basis points to 3.5 percent in its meeting today, citing a slowdown in growth as a key driver behind its decision.

A large proportion of SME’s are doubly invested in today’s interest rate decision with many using their home loan to finance their businesses.

Spending rose across the economy in April, according to the latest Commonwealth Bank Business Sales Indicator (BSI), though it appears business sales growth may be slowing as a result of declining consumer confidence.

Local small businesses have rated greater opportunities for growth, additional tax incentives and a focus on delivering flexible employment as key areas they’d liked to have seen on the 2012 budget agenda.

After the Wayne Swan’s rhetoric about his Government being one for small and medium business, the Federal Budget delivered last week turned out to be remarkable in that if contains no new meaningful support to businesses that aren’t loss making.

In this opinion piece Chris Luxford looks at the challenges facing the local workforce, like off-shoring and shifting skill requirements, and the way these impact how businesses access staff with the right skills for their operations.

Unemployment has fallen to its lowest level in 12 months, dipping below 5 percent as a result of 15,500 additional jobs being added to the local economy.

Treasurer Wayne Swan unveiled the 2012/13 budget in Canberra overnight, returning it to surplus and detailing a number of measures he said would benefit small business. But many SMBs have been left wanting by the budget, saying it doesn’t deliver enough support to the sector.

Ongoing economic uncertainty caused business confidence to fall nearly ten points in February, to 108.9, after six consecutive months of rises to January 2012.

The National Australia Bank and the Commonwealth Bank are the first of the Big Four banks to reduce their standard variable interest rates following Tuesday’s official rate cut by the Reserve Bank, with both failing to pass on the full amount.

The divide between Australia’s three mining states and the rest of the country appears to be growing, as the Northern Territory, Western Australia and Queensland lead the way in growth of business credit enquiries in the first quarter of 2012.

The Reserve Bank of Australia (RBA) has cut the official interest rate by 0.5 percent to 3.75 percent, citing weakened economic conditions and moderate inflation as the drivers behind its decision.

Local small business insolvencies hit a record high in February, with the number of companies entering external administration reaching their highest level since 1999.

Business expectations have slid this quarter, as interest rate worries and ongoing pressure from the strong Australian dollar weighs on local SMBs.

Over half of all SMBs have expressed dissatisfaction with the Federal Government, as many report feeling disrespected and unsupported by Julia Gillard’s Labor party.

The recovery in economy-wide spending appears to have consolidated as business sales remain positive, according to the latest Commonwealth Bank Business Sales Indicator (BSI).

Despite global financial volatility, local businesses are feeling optimistic as they look towards implementing more efficient cost-cutting measures.