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ACAPMA PETROLEUM INDUSTRY REPORT NEVER BEEN A BETTER TIME TO BE AN UNSKILLED WORKER What can be done to address the worker shortages that many Australian businesses are experiencing? By ACAPMA CEO Mark McKenzie. A s I wander around the country talking to petrol- convenience retailers, there’s a general sense that the worst of Covid-19 is over and everyone is adjusting to a post-Covid world, whatever that is. With a few exceptions, fuel retailers are reporting that fuel sales have returned to pre-Covid levels. Some retailers in regional areas of eastern Australia suggest that fuel sales are better than average, which is likely due to more and more Australians holidaying at home and/or taking weekend breaks in the country. A return to normal competition due to the reopening of the economy, along with rising world oil prices, mean that average margins are decreasing. But average earnings remain steady given the general rise in sales volumes at the pump. It’s interesting to note that many businesses are reporting increased convenience sales relative to pre- Covid levels. During the lockdowns, many retailers reported a substantial rise in the sale of non-fuel products, particularly grocery items and prepared food offerings. Many of us put this down to the fact that customers were wary about visiting large supermarkets and were spending most of their time working from home. It therefore made sense that suburban outlets experienced increased sales as customers sought out small stores close to their homes. But with most states having been free of statewide lockdowns since the start of the year, businesses in eastern Australia are reporting that, despite falling since the height of the pandemic, convenience sales are still 10-15 per cent higher than pre-Covid levels. So, all in all, things look good for our industry in the near term. Well, not quite. In recent months, ACAPMA has been receiving reports of acute staff shortages. Feedback from some retailers suggests the problem is becoming so bad that they’re considering whether to close their business during the late night/early morning periods. Such a move, which is somewhat reminiscent of the opening hours that were commonplace in our industry during the 1970s and 1980s, is a significant concern against a background of recovering business demand. Analysis of the current workforce challenges suggests that these problems cannot be attributed to a single cause. Rather, they appear to be due to the interplay of several factors. Addressing this issue in a timely manner is therefore likely to be complex. "In recent months, ACAPMA has been receiving reports of acute staff shortages." Chief among the causes of the worker shortage is the distinct lack of incoming foreign visa workers. The closure of Australia’s international borders means that international students, other international visa holders, and international backpackers are not entering Australia. These workers traditionally filled the late night/early morning shifts across our nation’s service station network, and their loss is making these shifts difficult to fill. While you might have expected that these roles would have been filled by Australian residents who are out of work, national employment figures released last month indicate that Australia’s national unemployment rate is just 5.5 per cent. So, those who want jobs are largely finding them in other industries. In regional areas, businesses are finding that a lack of affordable accommodation – driven by capital city buyers buying properties for Airbnb lettings – is also reducing availability of rental properties in regional centres. This means that even if a prospective capital city resident is prepared to locate to a regional area for a job, they generally cannot find affordable rental accommodation in the area. With the federal Treasurer announcing that Australia’s international borders are likely to remain closed until mid-2022, the workforce challenges are likely to continue. Even if this reopening date is achieved, most 70 CONVENIENCE WORLD MAY/JUN, 2021