“This is sadly going to mean more business closures.' Australia’s biggest employers are reeling from the higher-than-expected 5.2 per cent rise to the national minimum wage. | hijessicayun
Australia’s biggest employers are reeling from the higher-than-expected 5.2 per cent rise to the national minimum wage, arguing it adds to the list of challenges for pandemic-hit businesses that include surging power bills and supply chain problems.
“There is a major risk that the 5.2 per cent increase … will lead to even higher interest rates; even more hardship for people with mortgages, personal loans or credit card debts; and add substantially to the risk of unemployment and underemployment – particularly for unskilled employees,” Willox said.
“Small businesses are now facing surging energy prices, continued supply chain disruptions, the second-worst workforce shortages in the OECD, and the prospect that inflation could reach 7 per cent.“Imposing unaffordable wage increases on these small businesses will put jobs at risk, not create them.”Australian Retailers Association CEO Paul Zahra similarly cited the challenges of supply chain issues, staff shortages, and the cost of energy and fuel being faced by retailers.
“This is sadly going to mean more business closures,” Clarke said. “I know a lot of business owners will have zero ability to absorb the extra cost.” “Wage inflation is not the same as long term wages growth. Wage inflation without productivity would hold back the economy and put Australia’s record low unemployment rate at risk,” she said.