Mid West businesses show biggest concern over lack of skilled workers, according to CCIWA regional report

Businesses in the Mid West have the biggest concerns over skills shortages across the State, according to the latest regional pulse report from the WA Chamber of Commerce and Industry.

The quarterly report released in December showed 89 per cent of businesses in the Mid West and Gascoyne said the availability of skilled workers was a barrier to growing their businesses over the next 12 months.

It was the highest percentage among the responders, with the Kimberley (79 per cent) and the Great Southern (77 per cent) rounding out the top three.

According to the data, 85 per cent of Mid West and Gascoyne businesses struggled to hire skilled workers, with automotive electricians and mechanics, hairdressers, and plumbers the top in demand occupations.

CCIWA chief economist Aaron Morey said the trend across the State was similar.

“The labour market is tight right across WA with the unemployment rate at 3.3 per cent for November, so it’s not surprising to see that playing out most acutely in the regions,” he said.

“Across regional WA, 74 per cent of businesses said they had struggled to fill a skilled position.

“We also asked businesses whether their labour costs had increased this quarter, and 75 per cent said they had.”

Rising operating costs was also a concern in the Mid West (68 per cent), while lack of housing for workers (45 per cent) also was on the mind of local businesses.

Mr Morey said the inclusion of housing shortages to the pulse report reflected the market.

“A lack of housing for workers emerged as the third biggest barrier for regional businesses, which really highlights how significant the shortages are,” Mr Morey said.

“The lack of available housing for workers feeds directly into the skills shortages we’re seeing across regional WA.”

Across regional WA, businesses saw labour costs increase over the quarter, but businesses in the Mid West also reported an increase in sales over the same period.

Despite the concerns of skilled worker availability, 45 per cent of local businesses recorded an increase in employees.