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The same survey showed the increasing importance of early sales such as Black Friday. More than half of respondents said they planned to finish their Christmas shopping in November: 53 per cent identified Black Friday as their key shopping date.
The overall performance of the small and medium-sized business sector, as measured by MYOB, edged down over the past three months, mostly due to a further fall in discretionary spending.
Impact Economics lead economist Angela Jackson said there had been an extended period of weakness hitting the small business sector, which could turn around.
“Next quarter, we expect to start to see a recovery in the retail sector as tax cuts flow through to consumers, and inflation moderates further. However, an interest rate cut before Christmas would certainly help with that recovery,” she said.
Separate research to be released on Monday by independent think tank e61 suggests low income earners who are covered by non-compete clauses in their workforce could be doing it even tougher this Christmas.
In nation-first research, the think tank found workers at businesses that use non-compete clauses, which prevent a staff member from working with a similar firm if they leave the operation, were paid, on average, 4 per cent less than those at businesses that don’t use such clauses.
Low-income earners were hardest hit, earning 10 per cent less after five years with a business that uses the clauses.
Non-compete clauses have been increasingly used by businesses, including in low-skilled and low-income sectors including retail and fast food.
The research also showed that in businesses that increased their use of non-compete clauses between 2018 and 2023, workers were 10 per cent less likely to change jobs.
People who work with a non-compete clause in their employment contract end up with lower wages, new research shows.Credit: iStock
e61 research manager Ewan Rankin said the research showed non-compete clauses affected not only those employed under them, but also the broader economy.
“The results are consistent with a view that the rising use of non-compete clauses has contributed to lower levels of job mobility and wages growth,” he said.
“By locking people into jobs that may not be the right fit for them, non-competes may also be damaging economic growth and innovation.”
The federal government, as part of its broader review of competition across the economy, is examining whether to blame or dramatically limit the use of non-compete clauses.
Assistant Competition Minister Andrew Leigh said the research added to the case to overhaul non-competes.
“It shows they’re bad for wages and bad for job mobility. The e61 wage impacts are in line with the US, where evidence has led the Federal Trade Commission to put in place a nationwide ban,” he said.
