Federal Labor boasts about jobs growth while 90% of Australian bosses expect staffing shortages

Federal Labor has boasted it has overseen the best jobs growth of any new government in 50 years but chief executives are fearful of finding workers in 2023.

The two sides of the jobs boom in Australia are demonstrated by an analysis released by the treasurer, Jim Chalmers, and a survey commissioned by the Australian Industry Group which found 90% of CEOs expected staffing shortages this year.

The tight labour market, with unemployment down to 3.4%, has contributed to eight consecutive cash rate rises since May, as the Reserve Bank of Australia unwinds emergency levels to counter soaring inflation.

According to the Treasury analysis, 234,000 more people were employed in November than when Labor was elected in May, an increase of 1.7%.

The first six months of the Abbott, Howard, Fraser and Whitlam governments all saw jobs growth of 0.6% or less.

The strongest sectors for Australian jobs were construction with 99,000 extra jobs (8.4%), retail trade up 40,000 jobs (3.1%), and accommodation and food services up 40,000 jobs (4.4%).

The Ai Group survey found that chief executives were optimistic, with 49% expecting stronger conditions for business in 2023 compared with 30% who predicted a deterioration.

To boost the workforce, chief executives said they planned to invest in more in-house training and raise wages.

In 2023, the Albanese government plans to introduce a second tranche of industrial relations reforms to legislate its promises of same-job same-pay in labour hire and minimum conditions in the gig economy.