'Decarbonisation and greater sustainability are driving new demand'
The "green" transition for organisations will likely fuel more jobs in Australia, according to employers in a new survey from the Ai Group.
The survey, which polled 251 businesses, found that more than a quarter of employers believe that decarbonisation (26%) and customer demands for environmentally sustainable practices (26%) will drive an increase in headcount.
Another quarter said it would be because of digital transformation, according to the report.
Source: Ai Group
But a third of employers also said digital transformation will also cost jobs, the report found.
Other factors that will likely result in a headcount reduction include slowing economic growth (73%) and supply chain disruptions (38%), according to the respondents.
"We know that supply chain challenges and high input costs are concerns for many Australian businesses. This data is telling us these challenges may cost jobs in 2024," said Innes Willox, Ai Group chief executive, in a statement.
"On a positive note, decarbonisation and greater sustainability are driving new demand, and businesses see that resulting in new jobs."
Business challenges
The findings come as supply chain disruptions and rising input costs emerged as the top factor impacting businesses over the next two years, according to 71% of employers in the survey.
More than half of the respondents also said slowing economic growth (59%) and customer demands for environmentally sustainable practices (57%) will impact businesses in the next two years.
Source: Ai Group
Amid these challenges, the report found that more than half of respondents said they're confident in handling:
- Customer demands for environmentally sustainable practices (74%)
- Slowing economic growth (73%)
- Customer demands for socially sustainable practices (72%)
- Supply chain disruptions and rising input costs (70%)
- Diversification, sovereign risk, shorter supply chains (63%)
- Digital transformation (61%)
On the other hand, less than half of employers are confident in navigating challenges, such as decarbonisation-driven investment decisions (46%), increasing geopolitical risk (40%), and AI embedded into operations (35%).
