Written by Australia’s employment paradox is clear: wages are rising, but productivity is falling. Employment Hero’s latest SmartMatch Employment Report reveals Sydney and Melbourne’s uneven wage trends, spelling broader economic challenges for SMEs. Key findings include: Wages continue to rise: Sydney’s 6.6% wage growth vs. Melbourne’s 3.6%, though, hours worked have declined in both cities. Productivity drops sharply: Average hours worked fell by 6.0% YoY, with casual employees seeing a staggering 25.4% drop, suggesting businesses are preparing for a diluted holiday season. Flexibility in focus: Casual employment rose by 10.7% YoY, but hours worked per casual employee plummeted, indicating businesses are reducing individual workloads. Industry divergence: Construction & Trade Services led wage growth at 10.3% YoY, while Science & Technology showed resilience with 5.9% YoY growth in wages and a modest 0.6% decline in hours worked. Ben Thompson, CEO and Chief Economist at Employment Hero, explains: “Our workforce is at a critical tipping point. Rising wages signal strength in our labor market, but the sharp decline in productivity is a red flag for Australia’s economic resilience.” “This isn’t just about numbers – it’s a wake-up call for SMEs to rethink how they balance costs, flexibility, and efficiency. With Sydney and Melbourne reflecting very different realities, businesses must embrace innovative strategies to remain competitive. The holiday season will be pivotal, not just for revenue, but as a test for Australia’s workforce stability heading into 2025.” See attached a PDF of the October report. Let me know if you’re interested in any of this data or would lik The post Sydney Vs. Melbourne Wages & Productivity Slumps: Key Insights for Australian SMEs appeared first on Small Business Connections.
Artificial Intelligence (AI) has revolutionised the way we work. For new business owners, it’s a powerful tool that can streamline operations, boost productivity, and save valuable time and money. Here’s a guide on how to effectively leverage AI to your advantage: What Tasks Can AI Handle? Content Creation: Blog Posts: Generate ideas, write drafts, or create entire articles. Social Media: Craft engaging posts, captions, and hashtags. Email Marketing: Write persuasive subject lines and body copy. Customer Service: Chatbots: Provide instant customer support, answer FAQs, and troubleshoot issues. Sentiment Analysis: Gauge customer feedback and identify areas for improvement. Marketing and Sales: Market Research: Analyse market trends, competitor insights, and customer preferences. Sales Copy: Write compelling product descriptions and sales pitches. Administrative Tasks: Scheduling: Manage appointments and meetings efficiently. Data Entry: Automate data input and organisation. Email Management: Sort and prioritise emails, draft responses. What Tasks Should You, as a Business Owner, Handle? While AI can automate many tasks, certain areas still require human touch and strategic thinking: Strategic Planning: Setting long-term goals, vision, and mission. Decision Making: Making critical business decisions based on intuition and experience. Building Relationships: Networking, client interactions, and team management. Creative Thinking: Developing innovative ideas, brainstorming, and problem-solving. Quality Control: Ensuring the accuracy and quality of AI-generated content. How to Effectively Use AI: Identify Suitable Tasks: Assess your business needs and identify tasks that can be automated or enhanced with AI. Choose the Right Tools: Research and select AI tools that align with your specific requirements and budget. Provide Clear Instructions: Give AI tools specific prompts and guidelines to ensure accurate and relevant outputs. Review and Edit: Always review and edit AI-generated content to maintain quality and brand voice. Continuous Learning: Stay updated with the latest AI advancements and learn how to adapt to emerging technologies. By effectively leveraging AI, new business owners can streamline operations, increase efficiency, and focus on strategic initiatives. Remember, AI is a tool to assist, not replace, human ingenuity and creativity. Popular AI Tools for Small Businesses: Jasper.ai: A versatile AI writing assistant for various content types. Copy.ai: A powerful tool for generating marketing copy, ad copy, and more. Grammarly: A grammar and style checker that can also suggest improvements. Canva: A design tool that uses AI to create stunning visuals. ChatGPT: A versatile language model for various tasks, from writing to coding. By understanding the capabilities and limitations of AI, you can harness its power to drive your business forward. The post Leveraging AI: A Practical Guide for New Business Owners appeared first on Small Business Connections.
Zebra Technologies Corporation (NASDAQ: ZBRA), a leading digital solution provider enabling businesses to intelligently connect data, assets, and people, today announced the findings of its 17th Annual Global Shopper Study. The data shows shoppers are not the only ones who are worried about the impact of theft and crime on the in-store experience. The majority of retail associates (84% globally, 72% in APAC) are concerned about the lack of technology deployed to spot safety threats or criminal activity. With most retailers (78% globally, 80% in APAC) under high pressure to minimise theft and loss, they are now investing in technology tools that can help frontline workers and those watching operations from behind the scenes. Artificial intelligence (AI) technologies are currently viewed as the most helpful with loss prevention, closely followed by cameras, sensors, and RFID. While only 3-in-10 retailers (38% globally and in APAC) currently use AI-based prescriptive analytics for loss prevention, more than half surveyed (50% globally, 52% in APAC) plan to use it in the next 1-3 years for this purpose. Over three in 10 retailers say they also plan to use self-checkout cameras and sensors (45% globally, 52% in APAC), computer vision (46% globally and in APAC), and RFID tags and readers (42% globally, 38% in APAC) within the next three years, specifically for loss prevention. This should come as a relief to shoppers, as 78% say it is annoying when products are locked up or secured within cases. Adding to that frustration is that it is hard to find an associate while shopping in stores these days, according to 70% of consumers. This resonates with 79% and 70% of APAC shoppers respectively. Increasingly over the past two years, the reason why one in five shoppers (21% globally, 22% in APAC) left a store without getting what they needed was due to a lack of available retail associates to help. Other Issues Contributing to Associate Frustration, Decline in Shopper Satisfaction Although consumers are still generally satisfied with their shopping experience and global consumer spending is holding steady, fewer shoppers overall are satisfied with their shopping experiences this year. In 2023, 85% were satisfied with both the in-store and online experiences – this stood at 81% and 80% respectively for APAC shoppers. This year, only 81% are satisfied with the in-store experience and 79% with online shopping. Satisfaction similarly decreased for APAC shoppers, to 78% for in-store experience and 75% for online shopping. Generally, most shoppers expect retailers to offer easy click-and-collect and returns options, yet retailers (79% globally, 85% in APAC) and associates (85% globally and in APAC) admit challenges with both . Most retailers also say it is a struggle to confirm current inventory and pricing. Plus, with more shoppers returning to stores, lingering labour shortages and increasing loss incidents are having a greater impact on service levels. For example: 78% of global shoppers (81% in APAC) say self-checkout options improve their shopping experience, yet 68% of global shoppers (67% in APAC) identify that self-checkout (SCO) lanes are lacking, with some reporting they have left a store without making a purchase because there were no SCO (shelf-checkout kiosks) or contactless payment options. 71% of global shoppers (70% in APAC) are concerned about the lack of help associates can offer, while 82% of global associates (76% in APAC) say it is even difficult for them to find help or ask for timely support when needed. Nearly 90% of retail associates believe they can provide a better customer experience when they have mobile technology tools to help simplify real-time communication and prioritise tasks as well as check prices and inventory. Most retailers agree technology enables associates to do their jobs better, and as a result, 75% of global retailers (79% in APAC) say they plan to increase their technology investments in 2025. “Many retailers are laying the groundwork to build a modern store experience,” said Nathahn Walter, ANZ Regional Sales Manager, Zebra Technologies. “By investing in mobile and intelligent technologies to provide greater visibility, help inform operational decisions and enable great mobility for associates, this ladders up to elevate the customer experience for retail’s long-term longevity.” Along with enhancing customer experience, the study shows retailers’ top priorities include improving mobile workforce efficiency and productivity along with inventory management. More than one-third of them (39% globally, 41% in APAC) believe that GenAI will have an extremely significant impact on inventory management and demand forecasting. They will also be automating product locating and item-level RFID (46% globally and in APAC), video monitoring (45% globally and 36% in APAC), and stock-out alerts (45% globally, 49% in APAC) to give associates and shoppers real-time inventory visibility, which is a leading profitability driver. “By implementing advanced technologies like the Zebra kiosk system, RS2100 Bluetooth wearable scanner, WT5400 wearable computer, DS55 fixed mount scanner, MP72 series multi-plane scanner/scale, and ZT411 with ZeroLiner Linerless Printing Solution, it will help retailers navigate today’s business challenges,” said Nathahn Walter, ANZ Regional Sales Manager, Zebra Technologies. “The solutions are designed to address various issues like managing stockouts, while empowering associates to provide a seamless customer experience to meet the evolving expectations of modern shoppers.” How Retailers Can Recover from the Year-Over-Year Decline in Shopper Satisfaction Retailers can exceed shopper expectations, drive profitability and empower engaged associates if they: Get to know their customers. Three-quarters (75% globally, 77% in APAC) of shoppers are more willing to try and buy items when retailers know their personal preferences and associates make recommendations. Make it easier to find, pay for, and return items and find item–related information. Shoppers want associates to be available, and they are driven to retailers who can help them more easily find or return items. Keep shelves stocked. While fewer shoppers are complaining about out-of-stocks, this remains the top reason why over half (57% globally, 49% in APAC) of shoppers leave a store without items they want, and more associates (86% globally and in APAC) are now struggling with real-time out-of-stock tracking. Protect shoppers without over-indexing on loss prevention. Most shoppers (71% globally, 65% in APAC) are concerned about the stores at which they shop are experiencing high levels of theft and
The Australian job market, once buoyant, is now showing signs of cooling. Recent data from the Australian Bureau of Statistics (ABS) and Employment Hero reveals a mixed picture. Ben Thompson, Chief Economist at Employment Hero, commented, “The latest ABS labour force data shows the unemployment rate has remained at 4.1%, reflecting job market instability. In parallel, Employment Hero data shows employment growth slowed to 4.8% year-on-year in October 2024, down from 8.3% in October 2023. This combination of a stable unemployment rate and a slower employment growth rate suggests a softening demand for hiring, as businesses appear more cautious about expansion in response to economic pressures.” A notable trend is the decline in hours worked, particularly in casual roles and sectors like retail. “We’ve observed a 6.0% year-on-year drop in hours worked, especially in casual roles (-25.4%) and sectors like retail (-10.4%). This drop may be linked to rising wage pressures and early preparation for Black Friday and year-end sales, where we anticipate a boost in hours worked. South Australia experienced the most significant decrease, with hours worked down by 9.6%, primarily due to fewer casual hours,” explained Thompson. Small and medium-sized enterprises (SMEs) are facing significant challenges. “For SMEs, they are navigating a complex environment balancing operational needs with the rising cost of doing business. Many small businesses are struggling to grow sustainably, highlighting the pressure of an evolving labour market and the impact it has on job stability,” Thompson added. As the Australian economy continues to adjust to these shifting conditions, businesses must adapt their workforce strategies to ensure both employee satisfaction and long-term business success. The post A Mixed Bag or a Slowdown? The Latest Job Market Trends appeared first on Small Business Connections.
Australia’s unemployment rate has remained stable at 4.1% for the third consecutive month, according to the latest data released today from the Australian Bureau of Statistics, while the economy added just under 16,000 new jobs last month. Recruitment specialists Robert Walters Australia suggest these new trends emerging in hiring patterns and candidate applications could be early signs of a potential shift in the job market. Also, for the first time in over two years, applications per job ad fell by 0.9% month-on-month, indicating a shift in the labour market dynamics. Kry Findings: Australia’s unemployment rate remains stable at 4.1% for the third consecutive month For the first time in over two years, applications per job ad fell by 0.9% month-on-month 76% of companies are actively planning to hire in the next 6-12 months 50% of businesses already in the process of hiring Shay Peters, CEO of Robert Walters Australia said, “A stable unemployment rate indicates that the number of people joining the workforce is roughly in line with the number of available jobs. Although it doesn’t mean there are no shifts in individual employment, it reflects overall stability in the job market, suggesting that the number of job seekers and job opportunities are well-matched—offering a glimmer of hope for those searching for work.” Recent research by Robert Walters supports this emerging trend. A survey of over 2,000 white collar businesses across the country revealed that 76% of companies are actively planning to hire in the next 6-12 months. With 50% of these businesses already in the process of hiring, underlining the ongoing demand for talent despite the broader macroeconomic conditions. The study also uncovered a shift in the balance between job seekers and available roles. While 58% of employees in Australia are actively looking for new opportunities, the number of companies seeking to hire now slightly surpasses the pool of candidates considering a move. This marks a shift toward a more candidate-driven market, reversing the trend of recent years when the number of job seekers outpaced job openings. Peters said, “For a long time now, the job market has been extremely candidate-heavy, with a significant amount of highly qualified and experienced individuals competing for fewer roles. But these new figures could be early signs that the job market is slowly shifting.” He further explained, “While hiring managers may have previously been the ones dictating terms, we could see candidates increasingly take the reins. This could include more demands for things like higher salaries and flexibility. This power shift could make way for a significant change in workplace expectations and desires.” This evolving landscape presents both opportunities and challenges for employers and job seekers alike as they navigate the changing labour market, nonetheless job seekers across the country are hopeful for this change. The post The Great Australian Hiring War: Who Will Win? appeared first on Small Business Connections.
2024 has presented Australian businesses with a unique set of challenges: rising living costs, interest rate hikes, and the complexities of returning to the office. Despite these headwinds, organisations built on trust, fairness, and purpose have shown remarkable resilience. Overall Workplace Satisfaction While overall workplace satisfaction has slightly dipped from 80% in 2023 to 78% in 2024, certified Great Place to Work® organisations continue to outperform their peers. These certified workplaces have maintained higher levels of employee engagement and innovation, highlighting the enduring power of strong workplace cultures. Company Performance by Size Large Companies: Have maintained a steady 62% satisfaction rate, demonstrating resilience in a fluctuating market. Medium Companies: Have experienced a decline, with the best-performing medium-sized companies dropping from 73% to 66%. A notable performance gap is emerging between top-performing and average medium-sized businesses. Small Companies: Show the strongest positive trajectory, with top-performing small companies increasing from 81% to 83%. Micro Companies: Remain the highest-performing category, although they have experienced a slight decline from 95% to 91%. Smaller organisations appear to be outperforming larger ones, suggesting that agility and closer employee connections may be key advantages in today’s workplace. Workforce Demographics Generational Composition: Millennials and Gen Z make up 67% of the workforce. Despite generational differences, trust in leadership is a universal priority. Part-Time Employment: Has increased by 1% over the past 12 months, with a significant proportion of part-time workers in leadership roles, particularly women. Gender Leadership Gap: Female representation in executive roles has decreased by 1%, highlighting the ongoing challenge of gender disparity in leadership positions. Employee Engagement Drivers Remote Work: Has positively impacted work excitement, colleague effort, and work-life balance. Purpose and Pride: Employees who feel a sense of purpose and pride in their work are significantly more likely to recommend their workplace, stay long-term, and rate their organisation as a Great Place to Work. Flexible work arrangements and a strong sense of purpose are emerging as powerful drivers of employee engagement and retention. By understanding these trends, Australian businesses can adapt to the evolving workplace landscape, foster strong workplace cultures, and attract and retain top talent. The post Key Trends Shaping Australian Workplaces in 2024 appeared first on Small Business Connections.
With the festive season fast approaching, a new national survey from Australia’s #1 platform for connecting with tradies, hipages, has uncovered a worrying trend: a large number of tradies are struggling to take a well-deserved break. Despite the holiday season offering a perfect opportunity for rest, less than half (49%) of the nation’s tradespeople have taken more than a week off in the past year, and a significant 64% say that taking time off during Christmas feels “near impossible.” The survey reveals several key barriers that prevent tradies from stepping away from their work and enjoying a proper break. The most common reason cited is that their business cannot function without them (40%), followed by the inability to afford the cost of a holiday (38%). Another pressing concern is the fear of losing clients (37%), and many tradespeople feel they simply don’t have the time to take leave (36%). Additionally, 26% of tradies mentioned they need to reinvest their money back into their business, which further limits their ability to take time off. Key Findings from the Survey: Less than half (49%) of tradies have taken more than a week off in the past year. 64% of tradies report that taking time off over the Christmas period feels “near impossible.” 40% of tradies feel their business cannot operate without them. 38% cannot afford the cost of taking a holiday. 37% are concerned about losing clients if they take time off. 36% say they simply don’t have time to take leave. 26% need to reinvest their earnings back into their business, limiting their ability to take breaks. These findings highlight the immense pressure faced by tradies, who often find themselves caught in a cycle of constant work, with little opportunity to relax or recharge. However, according to Robert Tolliday, Chief Revenue Officer at hipages, there are a number of simple strategies that under-the-pump tradies can adopt to ensure they can take time off without compromising their business. One of the most effective strategies is to plan ahead. By scheduling time off well in advance and informing clients early, tradies can manage expectations and avoid the risk of losing business. Delegating tasks or working with trusted subcontractors can also ensure that the business continues to operate smoothly in their absence. Additionally, automating administrative tasks, such as invoicing and scheduling, can save time and allow for greater flexibility. Tolliday also recommends that tradies consider putting aside a portion of their earnings throughout the year for their holiday fund, helping to alleviate the financial pressures that come with taking time off. Investing in tools or systems that streamline business operations can also free up time, allowing tradies to step away without sacrificing their income. While the pressures facing Australia’s tradies are undeniable, adopting a proactive approach to managing workloads and planning for time off can help them achieve a healthier work-life balance. As the festive season approaches, it’s crucial that tradies take the time to rest, recharge, and spend quality time with family and friends – because a well-rested tradie is a more effective and happier tradie in the long run. The post Survey Reveals Why Tradie Business Owners Find It ‘Near Impossible’ to Take a Holiday appeared first on Small Business Connections.
In today’s competitive business environment, small to medium enterprises (SMEs) must recognise the critical role that customer onboarding plays in securing long-term business success. Recent research has revealed a concerning statistic: 74% of customers are willing to switch to competitors if their onboarding experience is too complicated. This highlights the pressing need for businesses to streamline and optimise this vital process to retain customers and ensure sustainable growth. Onboarding can be a lengthy and challenging process, with corporate clients averaging up to 100 days to fully complete their onboarding experience. This extended timeline can put a strain on relationships between businesses and their clients, often leaving customers frustrated and disengaged. Furthermore, over 90% of customers believe that businesses could significantly improve the onboarding experience, underscoring a clear gap between expectations and service delivery. For SMEs, failing to optimise the onboarding process can undermine the efforts of sales and marketing teams, as acquiring new customers is estimated to be up to 25 times more expensive than retaining existing ones. Therefore, businesses that don’t streamline the onboarding journey risk losing the momentum built by their sales teams, as customers may become disillusioned with the process before it’s even complete. In the software industry, this disconnect between customer needs and service delivery is particularly evident. Despite increased investments in customer success, 75% of software companies report declining net revenue retention rates. This points to the fact that many companies are still struggling to meet the expectations of their customers, even with additional resources dedicated to customer service. “Service companies have long struggled with fragmented communications and inefficient processes, making it difficult to consistently deliver exceptional client experiences,” explains Srikrishnan Ganesan, Co-founder and CEO of Rocketlane, a leading SaaS platform for professional services management. This fragmented approach, particularly when using inconsistent tools, can disrupt the customer journey, leading to dissatisfaction and disengagement. To avoid this, businesses must prioritise automation, customer-centric onboarding, and AI integrations to streamline processes. Automating certain aspects of the onboarding process, such as email triggers and reminders, can enhance customer engagement, ensuring that clients feel consistently supported throughout their journey. In addition, 73% of customers now expect businesses to provide personalised solutions that cater to their unique needs. This makes it essential for companies to focus on creating a seamless and personalised onboarding experience that enhances client satisfaction. By doing so, businesses can build stronger, more loyal relationships with their customers, increasing their chances of long-term success. The trend is clear: 60% of companies are now establishing dedicated onboarding teams to focus specifically on delivering a smooth and efficient onboarding experience. For SMEs, investing in dedicated resources for onboarding is no longer a luxury but a strategic necessity. Those businesses that can deliver value and a seamless transition from the start will not only foster customer loyalty but also drive revenue growth. In conclusion, simplifying the client onboarding process is crucial for small to medium businesses looking to stay competitive and retain customers. By embracing automation, personalisation, and cohesive support systems, companies can ensure a smooth onboarding journey that not only meets but exceeds customer expectations. In doing so, they can secure long-term client relationships, improve customer satisfaction, and ultimately drive business success. The post The Hidden Cost of Complex Onboarding: Why Your Customers Are Walking Away appeared first on Small Business Connections.
The nation’s most successful and influential Asian-Australians are being recognised in the Asian-Australian Leadership Awards, – as they call out the barriers they face finding success in their chosen field. A survey of previous winners, over the last six years, has found 93% believed their Asian-Australian heritage has been a barrier to their success, while 81% said they’d been held back or overlooked for a promotion due to their cultural heritage. Asialink Chief Executive Martine Letts said it was disappointing such a bias against Asian-Austraians still existed in workplaces. “One in five people in Australia have an Asian cultural heritage, yet we do not see them equally represented in leadership roles in the workplace – only 3% of senior management positions are held by Asian-Australians,’’ Ms Letts said. The data also showed that while 83% aspired to take on a more senior leadership role at work, more than half said there weren’t any other Asian-Australians holding management roles in their workplace. “The Awards seek to reshape the debate and confront Australia’s ‘bamboo ceiling’ – the underrepresentation of Asian-Australians in leadership positions,” Ms Letts added. “It’s very difficult to break through that bamboo ceiling if your identity and cultural heritage hold you back from professional progression.” “Australian businesses are trying to be more culturally diverse, but we need more than just lip service. “Australian businesses are encouraged to take proactive steps to increase cultural diversity in their leadership, recognising it as both a social responsibility and a strategic advantage in an increasingly globalised economy. “The current lack of representation limits the diversity of thought and problem-solving capabilities and could also hinder companies’ ability to understand and navigate diverse business environments,” Ms Letts said. “The representation of culturally diverse leaders on ASX 300 boards and leadership teams remains alarmingly and disproportionately low,” said Sung Ho Lee partner, Johnson Partners – one of the region’s leading executive search firms. “We saw a similar trend with gender diversity at Board levels. In 2008, women used to occupy only 8% of Board seats across the ASX300. Today women now occupy 36% of ASX 300 board seats.” “I remain optimistic that we will start to see the needle move on this bamboo ceiling, once pressure from investors, regulators and broader stakeholders starts to gain traction,” he added. Ms Letts added: “The Awards shine a light on the incredible leadership talent and potential of Asian-Australians – but there is still a long way to go.” Asian-Australian Leadership Awards applicants are judged across 11 categories: Arts and Culture, Community and Advocacy, Corporate, Education, Entrepreneurship, Legal and Professions, Media, Public sector, Science and medicine, Sport, Under 25 Rising Star and Lifetime Achievement category. This year’s winners include: Lifetime Achievement Award: Foreign Minister, The Hon. Senator Penny Wong Senator Wong was born in the Malaysian state of Sabah and moved with her family to Adelaide in 1976 at the age of eight. Senator Wong has been re-elected to parliament four times between 2007 and now and has held several high profile portfolios including Minister for Climate Change and Water and Minister for Finance. In 2013 Senator Wong was elected Leader of the Government in the Senate and, after the change of government in 2013, became Leader of the Opposition in the Senate – the first woman to hold either of these roles. Overall Winner: Charlotte Young, 22 She co-founded the Australian National University Auslan Club, using her experience as a person with hearing loss to help drive change. The dancer and full-time university student works as an inclusivity consultant to national and international organisations including the Australian Government, UNICEF and the US Embassy. Under 25 Rising Star: Nathan Lee He’s passionate about creating equal opportunities for underserved communities. He co-founded an online community and platform, Stint, which supports over 3600 international students from 50 countries, in having a fair chance at a future working in Australia. Nathan is also the Director of Not-for-Profit EnAccess Maps, which helps users of mobility aids find accessible restaurants. Education, Science and Medicine Winner: Associate Professor Amirali Popat A Director of Research at the School of Pharmacy at the University of Queensland and is internationally renowned for his groundbreaking work in pharmaceutical sciences, particularly in 3D printed drug delivery systems and nanomedicine. Arts and Culture Winner: Victoria Falconer A cross-disciplinary performer, musical director, multi-instrumentalist, writer, composer and creative mentor, across cabaret, musical theatre and live music. Born in Australia, she is of Philippine and British heritage. This year’s Asian-Australian Leadership Awards will be announced at a gala dinner in Sydney on Thursday November 14. The Asian-Australian Leadership Awards, now in its sixth year, is an initiative of Asialink at the University of Melbourne and Executive Search firm Johnson Partners. The post Most Influential Asian-Australians Revealed, as ‘Bamboo Ceiling’ is Called Out appeared first on Small Business Connections.
As the value of the US dollar continues to surge, markets like Australia, are facing increasing risks that could reverberate across global economies. The rising USD, driven by looming policies under former President Trump, particularly his “America First” agenda, could significantly affect countries like Australia, which relies heavily on trade with Asia, especially China. With China’s currency weakening in response to potential US tariffs, and the dollar gaining strength, the Australian economy could be caught in the crossfire of a complex financial storm. Australia’s trade ties with China, its largest trading partner, and broader ties to the Asia-Pacific region, mean that fluctuations in the global currency and commodity markets could have a profound impact on the country’s economic stability. As emerging markets struggle with currency devaluations, inflation, and rising costs, Australia must prepare for a potential slowdown in demand for its exports, particularly in sectors reliant on Chinese growth. Emerging markets are teetering on the edge of a financial storm as Trump’s return to the White House is fuelling a massive dollar rally that could wreak havoc on developing economies. This is the warning from Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organizations, as the US dollar touched its strongest level in six months on Tuesday. The Dollar Index, which tracks the US currency against a basket of peers, was up 0.4% for the day. He says: “As the dollar strengthens on the back of looming Trump policies on Chinese imports, economies across Asia, Latin America, and beyond are staring down a wave of currency devaluations, inflation spikes, and economic instability. “Investors are already seeing echoes of 2016, but this time, the stakes are even higher.” Trump’s renewed America First agenda could mean unprecedented tariffs on China, potentially up to 60%. “Such heavy-duty tariffs would likely trigger a dramatic plunge in the renminbi, with devastating ripple effects across emerging markets,” notes the deVere CEO. “When China’s currency falls, it drags down other emerging market currencies with it, creating a domino effect of depreciations across the developing world. “For dollar-pegged economies like Argentina, Egypt, and Turkey, the fallout could be particularly catastrophic as they face the risk of explosive devaluations, uncontrollable inflation, and the threat of full-blown financial crises.” Emerging markets are also in the crosshairs of Trump’s trade policy. As the dollar continues its upward trajectory, emerging markets are bearing the brunt of this shift. With most global trade priced in dollars, these economies face rising costs for imports, skyrocketing inflation, and an increased burden on their dollar-denominated debt. “The challenge isn’t limited to just one region. Asian economies, Latin America, and African markets alike are vulnerable to currency plunges, inflation hikes, and investor flight if the dollar surge continues unabated,” observes Nigel Green. For commodity-exporting nations, a stronger dollar also spells weaker global demand, pushing commodity prices down and squeezing their economies even further. This scenario threatens everything from growth rates to employment stability across these markets. “Investors looking to emerging markets for growth may soon find themselves dealing with a drastically altered investment landscape as the dollar steamrolls through these fragile economies.” The effects of a dollar surge go beyond just currency devaluations. Local currency debt markets in emerging economies are facing mounting pressure as interest rates climb, driven by the global scramble to keep up with the appreciating dollar. The deVere CEO says: “As borrowing costs soar, these countries will be forced to choose between defending their currencies and sustaining growth—a dilemma that has the potential to destabilize economies in the process. “Without flexible exchange rates, these countries may see their economies hit hard by tightening financial conditions that they can no longer control.” For global investors, the implications are clear: emerging markets are poised for significant volatility as the dollar strengthens. “The next chapter of this economic story is starting, and for those prepared, it holds remarkable potential. “A well-positioned portfolio could leverage these shifts, unlocking new gains in a world where the dollar dictates the rules,” concludes Nigel Green. In the face of a stronger US dollar and a weakening Chinese yuan, Australia’s economy must navigate the uncertainty of global financial turbulence. While Australia’s close trade ties with China remain a key pillar of its economy, the ripple effects of these currency shifts—particularly on commodity prices and global demand—could pose significant challenges. As the value of the US dollar rises and Chinese economic activity slows, Australia may face lower export growth, higher import costs, and mounting pressure on its trade balance. With emerging markets across Asia and beyond already showing signs of strain, Australia will need to remain agile and strategic in managing these external risks, ensuring it can weather the storm and continue to thrive amidst global economic volatility. The post Trump’s Return: Rising USD and a Weakening Chinese Yuan Could be Australia’s Perfect Storm appeared first on Small Business Connections.