Plan for business challenges

Present
SME business confidence is on the rise since last year, according to the Sensis business index for August 2007. The reasons behind this newfound confidence are good demand, and a trust that current economic conditions will continue. But governmental uncertainties and blame shifting, along with rising interest rates, decreased business in certain industries, and increased competition, might change this upward confidence.

Future
So what does the future hold?

For starters, a rise in part-time work. With three million Australians currently working part-time, this section of the workforce is not longer made of just students, mothers and retirees. “Given the flexibility and reduced costs for employers, we expect part-time employment to continue to grow,” says Jason Baker, IBISWorld Australia general manager.

Also expected to rise is the unemployment rate. “We are expecting a rise in unemployment from around 2009 to 2010 and onwards due to a forecast slowdown in the domestic economy, increasing worker productivity, with fewer employees required to perform the same tasks, and globalisation of the workforce, which may see more jobs lost to lower cost workforces in Asia and potentially Africa over the long term.”

Finally, an increase of workers between 55 and 64 remaining in the workforce, and an increase of females workers aged between 45 and 54 is expected. Both increases are needed for the economy to cope with Australia’s ageing population.