Survey reveals job-cutting widespread

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Survey reveals job-cutting widespread

A national survey released today has revealed that four in ten businesses have cut their workforce because of the poor economic conditions.

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A national survey released today has revealed that four in ten businesses have cut their workforce because of the poor economic conditions.

The Sensis Business Index says nearly three in ten businesses cited a downturn in business or they were shutting down part of the business.

About 23% said it was because of resourcing issues, including staff resignations or long-term leave, including maternity leave.

Weak demand

Report author Christena Singh said weak demand was having a ‘significant impact’ on business confidence, profitability and the willingness to invest in capital and staff.

‘Demand for goods and services has weakened further since June, with the sales indicator now at the lowest level since August 2001,’ she said.

The finance and insurance sector have been the hardest hit, recording the weakest sales performance in the past quarter, closely followed by the retail trade sector.

The Index also shows more than six in ten small businesses are impacted by the current economic environment - three in four in New South Wales, the worst affected state.

The survey, which provides the latest snapshot of small and medium business (up to 199 employees) activity in Australia, interviewed 1800 businesses nationwide from 31 July to 22 August 2008.


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