Unemployment to rise and businesses to fail as a result of Queensland floods

Not only have the Queensland floods devastated whole communities with water damage and loss of life, but predictions are that affected communities will be hit by an increase in unemployment followed by skills shortage as people rebuild forcing hundreds of small businesses to close.

Job Ads ANZ MayThe former Head of Australia’s oldest employment company, Drake International, Matthew Tukaki has warned that the Australian economy and employment markets need to brace themselves for the aftermath of the Queensland Floods.

“The closure of the central business district of one our largest cities, a capital city at that, is very much another example of how far this crisis has got to go and the work that must be done once it abates – the reality is that more than 75 percent of the Queensland mining sector has had to shut down with large parcels of infrastructure ruined. The sugar crops that are ready for harvest are largely gone and the planting of the new crop may not happen – with small and medium business faced with so many financial pressures, the reality is business itself is at a significant risk.” Mr Tukaki has said.

“In turn, this has already impacted jobs and employment – people are simply not able to get to work, or the workplace just no longer exists. I estimate that thousands of small and medium sized business operators have already been impacted and thousands more, who are part of the supply chains of major corporations, will be next.” Mr Tukaki said.

“The concern is that unemployment may in fact rise initially over the next two quarters in flood affected parts of Queensland, but even when the floods abate and rebuilding begins another reality will hit our economy and that is skills – we simply do not have enough of a vocational and technical trade base to rebuild on such a large scale and if that planning does not get underway soon, of where the labour supply will come from, the rebuilding process may take longer.” Mr Tukaki said

For employers affected by the Queensland floods, here is our advice on how to manage your business and survive the crisis.

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