15% of SME jobs slaughtered by COVID-19

Around 15% of jobs have been lost in small and medium enterprises (SME) since mid-March because of COVID-19, with Victoria hardest hit, according to consulting firm Taylor Fry. In contrast, only 0.8% of jobs have been lost in large businesses, defined as those with at least 200 employees:

The analysis conducted by consulting firm Taylor Fry showed employees of Victorian SMEs were the hardest hit, followed by NSW, Tasmania and the Australian Capital Territory.

The analysis showed businesses employing fewer than 20 people (small businesses) had lost 8 per cent of jobs nationally, while those with between 20 and 200 employees (medium businesses) had lost 7.2 per cent.

Large businesses with more than 200 employees fared significantly better, with only 0.8 per cent of jobs lost since the beginning of the pandemic.

Imagine how bad it is going to get once JobKeeper is unwound and the moratorium on business insolvencies expires?

It could turn into an unmitigated jobs bloodbath.

Unconventional Economist
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Comments

    • This is why there is likely to be an ongoing mix of supports for the jobs market.

      Even so, it’s an utter sh*tshow. Business investment will remain low to non-existent while perpetual rounds of support are in place. How can you make an investment decision in such an uncertain environment?

      • I tend to think they will continue cut support based on their psychopathic neoliberal dogma. They have nothing alternative to offer. Pumping support into the banks will only stall a crisis as doesn’t address the loss of income. The coming collapse could be epic.

  1. Yep, will not be pretty. Discretionary spend companies are going to get slaughtered with household consumption collapsing under negative cash flow.

    SFM and Depressionberg are realising there will be no clean exit from this one. No amount of waiting, praying and hoping will save jobs. They created the stimulus bubble as a short term hope that CV19 would be gone in 3-6 months. Has not happened and now they have no answers.

  2. Hopefully all those newly on the dole, wonder why we keep importing 3rd world labour to compete them out of a job.

  3. Worse still, the only way Australia’s corrupt, one trick pony political class know how to stimulate economic growth is by importing 200K plus warm bodies from third world countries every year. 2021 is not looking good.

      • NSW’s ‘gold standard’ contact tracing is going to be put to the test.

        The Chinese won’t be coming, so it’ll be more ‘gold standard’ uber drivers from the subcontinent.

  4. We’re so lucking employment is completely independent of the mortgage industry or you might say we’re completed f’ed!!!

  5. I’m doing contract work in a NSW Gov agency. They are now slashing contractor jobs across the board as I guess they are seeing a looming revenue cliff. I think this will also happen in other States. I’m sure this will have zero impact on the property market.