19 Sep LABOUR HOARDING; THE NOT-SO HYBRID WAY
LABOUR HOARDING
New data out this week showing Australia’s unemployment rate holding steady at 4.2 per cent has reignited chatter in economic circles about the phenomenon of “labour hoarding”.
Deutsche Bank’s chief economist Phil Odonoghoe has told the ABC that the unemployment rate is lower than it should be largely because companies are “hoarding” workers and cutting their hours rather than axing their jobs.
He says while the practice is unusual, “labour hoarding is hampering the RBA’s policy objectives” when it comes to bringing inflation down to its preferred 2-3 per cent band.
“We estimate that the unemployment rate would be closer to 5.25 per cent if employment growth had matched the slowdown in hours worked,” he said.
THE NOT-SO HYBRID WAY
The future of hybrid work looks bleak as a KPMG survey obtained by the Sydney Morning Herald reveals that 82 per cent of Australian CEOs expect office workers to return to the office five days a week within three years. Also, 78 per cent of CEOs plan to offer pay rises to employees who work in the office.
Since the onset of the COVID-19 pandemic in March 2020, companies and governments have begun to take different stances on the necessity for employees to work in the same building as their co-workers, with ‘in the office’ mandates attracting significant media attention.
And so, the work-from home-debate continues. This month alone has seen large companies Tabcorp and Amazon shakeup their business operations and mandate five days in the office for their employees. Will the hybrid way survive?
IS AI THE FUTURE OF CUSTOMER SERVICE?
CBA’s proposal to implement an AI-powered customer service platform – Hey CommBank – has sparked both anticipation and worry amongst the company, according to the Australian Financial Review.
Hey CommBank promises rapid responses and tailored advice. For example, it can inform customers how much they would need to save to buy a house in a certain area. Morningstar analyst Nathan Zaia says not only would this take the load off call centers, which receive around 50,000 inquiries each day, but it could also reduce their costs by $600 million if successful.
It’s not all positive though. Fears about job loss, impersonal interactions and the risk of inaccurate financial advice have surfaced. As CBA continues to trial this new technology, it must weigh up the challenges of implementing innovation whilst upholding employee loyalty.
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