Two-thirds of Australian companies willing to send jobs abroad to cut costs, Money Transfer Comparison poll shows
Australian businesses struggling to find staff would send jobs abroad to avoid paying higher wages locally during a cost-of-living crisis, a new study shows.
A Money Transfer Comparison poll of business leaders found that more than two-thirds, or 68 percent, of small and medium-sized businesses would like to employ staff abroad.
The research of 200 business leaders, taken in August, found a tight labor market the biggest obstacle 21 per cent said it was too difficult to find staff in Australia, with wages rising at the fastest pace in more than a decade.
With artificial intelligence still in its infancy, a further 25 percent cited cutting costs and tax liabilities as a reason for sending jobs abroad, compared with 14 percent who said they needed the right skills and 8 percent who said they would consider the idea.
The companies suggested they were more likely to look abroad for technical people with specialized IT skills, with 21 percent citing this as an area for potential overseas outsourcing.
Australian companies struggling to find staff would send jobs abroad to avoid paying higher wages locally during a cost-of-living crisis, a new study finds (pictured is a Qantas plane taking off)
Consultants were also high on the list: 18 percent of companies nominated them, compared to 14 percent who pointed to administrative assistants, 13 percent who suggested accounting, 11 percent who mentioned marketing, and 10 percent who considered human resources or payroll.
Australia’s unemployment rate of 3.5 percent is at its lowest level in 48 years.
Wages are also growing at the fastest rate since 2012 at 3.7 percent, with the Reserve Bank expecting a growth rate of 4 percent next year for the first time since 2009.
In light of this, company leaders were asked if they would deploy offshore workers to alleviate pressures from wage increases and a tight labor market.
Money Transfer Comparison spokesman Russell Gous said many companies would offshore jobs to avoid Australia’s high wages after 12 rate hikes since May 2022.
“While higher wages can attract new workers, the additional costs may not be sustainable for many small businesses and the demand for specific skills may also outstrip supply,” he said.
“Hiring foreign workers and understanding how to get paid as a cost-cutting and gap-filling measure can improve the longevity of companies in these uncertain times.”
However, the survey’s sample size of 200 is smaller than the 1,000 size that pollsters consider the minimum necessary for a higher probability that accurately reflects Australians’ views.
The survey recipients were micro-enterprises with one to four employees, small companies with five to nineteen employees, and medium-sized companies with twenty to 199 employees.
The survey of 159 business leaders found that a tight labor market was the biggest obstacle, with 21 per cent saying it was too difficult to find staff in Australia, with wages rising at the fastest pace in more than a decade (pictured is a stock image )
Alon Rajic, the managing director of Finofin, the parent company of Money Transfer Comparison, commissioned a survey of 1,000 people for his Immigration to Australia website in July.
His research concluded that 50 percent of Australians aged 18 to 34 supported more immigration.
Even with wages rising at 3.7 percent, workers’ cost of living is rising at 9.6 percent, a level well above the inflation rate of 6 percent.
That means those with jobs will face a 5.9 percent reduction in real wages adjusted for inflation.