An increase in retails sales has been given credit for a decrease in youth unemployment across Australia.
According to the Commonwealth Bank Business Sales Indicator (BSI), June’s business sales increased 2 per cent from May’s three-year peak.
The amusement and entertainment sector had the biggest increase, with 2.6 per cent.
Economy-wide sales lifted for the fourth consecutive month in June, rising 7.6 per cent, the fastest pace in seven months.
Craig James, Chief Economist at CommSec and author of the BSI report, said in light of global economic uncertainties these statistics imply the Australian economy is gathering strength as sales continue to lift.
“It’s encouraging to see businesses and consumers embrace low interest rates and government stimulus, with spending growing at a steady pace,” Mr James said.
As the Australian economy continues to grow, youth unemployment figures could be on the way down, said owner of Melbourne based Superior Recruitment Agency, Graham Wynn.
“The market place has picked up, especially in retail where more and more companies are after young employees,” said Mr Wynn. “The timing has been slightly different this year with companies ensuring they’re confident and stable before looking for employees.”
As companies have become increasingly stable recruitment in sales have increased to allow products to enter the market, with Mr Wynn saying companies are looking for enthusiastic employees who are able to learn quickly, ideally with some experience.
Small businesses in particular are expected to demonstrate an increase in sales and employment opportunities with the most recent federal budget introducing multiple small business stimulus packages.
“Small businesses in Victoria have created the change seen in these figures,” said Council of Small Business Australia CEO Peter Strong. “For the increase to come from the big end of town we would’ve seen a much larger increase.”
“They haven’t rushed out and bought everything they need, but there has been a noticeable increase in sales which has been reflected in this report,” Mr Strong said.
Sharon Munro, a small business owner in Melbourne’s inner north, confirms that with the tax break provided in the last federal Budget companies have been able to increase efficiency.
“It’s allowed us to invest in infrastructure and tools that in the long run will bring benefits to our business,” Mrs Munro said. “The things we’ve been holding off on, we’ve bought.”
There is an obvious flow-on effect between strong businesses and youth employment, said Professor Lucas Walsh of Monash University’s Faculty of Education.
“We need to look at whether it can be sustained in the long term and whether employment opportunities offered to the youth are where they actually want to be.”
