Construction biz notches job and wage growth

A new report has highlighted the contrasting trends for Australian small businesses this quarter, with strong job growth and improved payment times.

The latest Xero Small Business Insights (XSBI) update has outlined the complex operating environment for small businesses.

The report highlighted the growth for small businesses in the construction industry, with a 5.7 per cent (y/y) job growth, and a 3.5 per cent (y/y) wage growth.

Despite the strong job growth and improved payment times, the report recorded sales were volatile, reflecting the complex operating environment for small businesses.

“The data shows that Australian small businesses continue to demonstrate resilience. We encourage small businesses to know their numbers and work closely with their advisors to find ways to improve productivity,” Xero sales director Theo Konstantas said.

“With the stage three income tax cuts set to boost disposable income for millions of Australians this financial year, we hope consumers will use some of this money to support their favourite small business, driving sales performance in the coming months.”

Job growth in states and territories

• Western Australia (+6.9 per cent y/y)
• Queensland (+5.3 per cent y/y)
• South Australia (+5.3 per cent y/y)
• Tasmania (+2.0 per cent y/y)
• Australian Capital Territory (+1.3 per cent y/y)

June quarter at a glance

• Sales growth averaged 3.9 per cent y/y for the June quarter. (3.8 per cent year over year (y/y) for the March quarter)
• Wages growth averaged 2.9 per cent y/y for the June quarter (3.3 per cent y/y for the March quarter)
• Jobs growth averaged 4.5 per cent y/y for the June quarter (3.4 per cent y/y for the March quarter)
• Small businesses waited 21.3 days to be paid in the June quarter (22.5 days to be paid in the March quarter)