Business optimism low in the Mid West due to labour shortages and rising costs, according to latest CCI survey

A report from the Chamber of Commerce and Industry WA has shown relatively less optimism in Mid West businesses, compared to other regions in the State. Businesses in the region said labour shortages and rising operating costs were the two main challenges they faced. According to the survey, 30 per cent of Mid West businesses expect economic conditions to worsen over the next three months, higher than the average seen throughout regional WA of 21 per cent and an average of 24 per cent in Perth. Over the next 12 months, no Mid West businesses surveyed said they expected conditions to improve. All surveyed Mid West businesses listed a lack of labour as a barrier for growth, as well as rising operating costs, which 91 per cent said was an issue. Meanwhile labour shortages were a problem for 82 per cent of WA businesses and 79 per cent said rising operating costs was an issue for them. Mid West businesses however reported less concern about supply chain issues and weak demand compared to the State average. “Regional businesses are under strain to meet demands for higher wages while their profits decline,” CCIWA chief economist Aaron Morey said. Mr Morey said he believed the State Government should provide relief to businesses by easing the payroll tax and the Federal Government should make it easier to bring in skilled workers from overseas in order to support commerce.