One in five businesses are looking to cut staff because of the spiraling cost of doing business.
The survey of more than 1,200 businesses has revealed 59% of owners will maintain the same headcount while only 19% are looking to bring people on.
The remaining 22% of business owners intend to cut staff, with the highly casualised workforces of arts and recreation, accommodation and food services and retail most likely to be the sectors hardest hit by job cuts.
Business NSW, Regional Director – Western NSW, Vicki Seccombe said enterprises are feeling the pinch.
“It’s worrying to see staff cuts emerge as a response to the cost increases.
“Locally, Western NSW businesses are showing similar results to the overall state results, with 24% of businesses advising they are planning to cut staff.
“At the moment, 26% of Western NSW businesses consider themselves to not have enough business activity to survive 2023 and the rising cost of business is regarded as the biggest barrier to operating at full potential, said Ms Seccombe.
Housing shortages continue to impact business, more than one in three (35%) of business owners refer to affordability of housing for workers as the biggest barrier to hiring new employees.