Latest Morgan and Banks Job Index confirms confidence in WA economy

12/11/97

Small Business Minister Hendy Cowan said the latest Morgan and Banks Job Index released today confirmed a confidence in the Western Australian economy by small business employers who were poised to take on new staff.

The survey by Morgan and Banks indicates that WA employers are expecting the biggest job growth in the nation during the next three months with more than a quarter of the State's employers planning for jobs growth.

"In WA 26.4 per cent of organisations intend putting on staff in the next quarter. This is a robust 7.5 per cent increase over the previous quarter and well above the national average of 21.8 per cent," Mr Cowan said.

"As 96 per cent of the State's private sector employers are small to medium-sized enterprises, the majority of this growth will emanate from the small business sector, confirming its status as the driving force in generating new employment.

"This is verified by the most recent Australian Bureau of Statistics data which estimated small business was responsible for two thirds of the net employment generation of 211,000 in Australia during 1995-96."

Mr Cowan said that sectors which would benefit most from increased employment were information technology, services, construction/property and resources.

"The Morgan and Banks survey also corroborated the May 1997 Small Business Development Corporation's Opinion Survey which found that small business was optimistic about the State's economic outlook," he said.

"The Opinion Survey indicated that 31 per cent of firms were expecting economic activity to increase in the second half of 1997 and 21 per cent had increased their staffing levels in the previous six months."

Mr Cowan said these positive employment figures would serve to increase consumer confidence and demand, resulting in increased spending on business services and products in WA.

Media contact: Peter Jackson (08) 9222 9595