Record high bill for wages

THE wages bill for Queensland small businesses has reached an all-time high, with employers having to pay premium salaries to retain staff.

That’s according to the latest Pulse Survey from the Chamber of Commerce and Industry Queensland, which also found small businesses had potentially “turned a corner” in the wake of pandemic lockdowns.

Half of businesses indicated they invested more in wages during the March quarter, as the state’s unemployment rate fell to 4 per cent – its lowest rate in more than a decade.

CCIQ policy and advocacy manager Cherie Josephson said the wages bill for small businesses had now hit a record high, with businesses paying “premium wages” to attract and retain suitably skilled staff.

Ms Josephson suggested that the situation was a reflection of skilled labour shortages in multiple industries across the state.

“The last time labour costs were close to these levels was in 2008,” Ms Josephson said.

“Despite this, one in four businesses expect to increase their employment levels in the June quarter.”

Meanwhile, 51 per cent of businesses are now operating at greater levels than that of March 2020, when the Covid-19 pandemic hit the country.