Economy

The unemployment rate climbed from 4.9 percent in June to 5.1 percent last month; rising a seasonally adjusted 0.1 percent according to the Australian Bureau of Statistics (ABS).

If you’re scared that the latest financial shake-up may lead to a second GFC, you’re not alone. Fortunately there are strategies you can employ to run a business in an uncertain economic environment.

More bad news for businesses has been spelt out today, with the Westpac-Melbourne Institute Index of Consumer Sentiment for August falling to levels not seen since May 2009.

Australians who choose to invest in domestic renewable energy are being warned of its stagnant returns, and instead are advised to look to Europe for profitable investments.

Assistant Treasurer Bill Shorten has spoken about the Productivity Commission (PC) draft report into the future of the retail industry released last week, declaring the review makes it clear the Australian retail sector has a bright future but needs to continue to innovate and change.



On the whole, SMEs are reporting low business confidence and continued challenges posed by cashflow, with the NAB Quarterly SME Survey revealing a disparity in confidence exists for businesses across different industries.

Retail turnover fell a seasonally adjusted 0.1 percent in June, with turnover falling most sharply in Department stores and Household goods retailing.

Business and sales expectations have again fallen on the back of interest rate rise fears, according to new Dun & Bradstreet figures, which also revealed Australia’s employment outlook has slipped to an index of -5.

The Reserve Bank of Australia (RBA) left the cash rate unchanged at 4.75 percent during its meeting in Sydney today; citing slow growth of the global economy and continued economic volatility in Europe and the US as drivers behind its decision.

Australian small business owners are feeling confident about growth prospects, despite coping with additional stress, a new study has found.

The retail industry received the surprise news yesterday that Premier Retail will close 50 of its stores in Australia and New Zealand and cut staff numbers, as part of new CEO Mark McInnes’ efforts to return the business to profitability.

The Australian Workers’ Union (AWU) has placed its support behind Julia Gillard’s carbon tax, saying in a meeting yesterday no jobs need to be lost as a result of the scheme.

More clarity is needed around the Government’s carbon price policy, according to the Institute of Public Accountants (IPA), especially around the impact it will have on the 2 million Australian SMEs.

The Gillard Government has promised its Clean Energy Future program will support Australian jobs by assisting businesses to survive and prosper in a low carbon economy.

Consumer sentiment fell 8.3 percent in July, to levels not seen since May 2009, thanks to uncertainty about the carbon tax, concerns over the European financial crisis and the ongoing impact of seven rate rises between October 2009 and November 2010.

Although Julia Gillard detailed small business exemptions when she announced the carbon price on Sunday, convenience stores say the tax will mean they’ll be faced with greater costs – either to be passed on to consumers or absorbed at the expense of profitability.

Small businesses and individuals impacted by the recent suspension of live exports are being offered Government assistance packages, after it was revealed the move left some businesses in precarious positions.

COSBOA is asking small businesses to provide information about how the carbon tax is likely to impact them, after people expressed disappointment it didn’t attack the carbon price scheme Julia Gillard announced on Sunday.

In the wake of yesterday’s Carbon Tax announcement, the Council of Small Business of Australia (COSBOA) has said it will do its best to ensure the scheme doesn’t disadvantage small business owners in time or cost.

Julia Gillard yesterday confirmed long-held speculation her Government would place a carbon tax of $23 a tonne on the country’s 500 worst polluters, with the price to rise 2.5 percent per annum each year after 2012.