Mid West businesses struggling with skills shortages and rising operating costs, according to new CCIWA data

Business confidence is shaky in the Mid West and Gascoyne, with more than nine out of 10 businesses surveyed revealing skills shortages and rising operating costs are barriers to growth. The local results for the Mid West revealed a lower level of confidence compared to the regional WA averages. The revealing figures emerged in the Chamber of Commerce and Industry WA’s Regional Pulse, released earlier this week, based on a business confidence survey conducted in June. It details WA’s skills and supply chain challenges, providing insights into the impacts of labour shortages, rising costs and supply bottlenecks on regional businesses. Here in the Mid West, 94 per cent of businesses identified skills shortages as a barrier to growth, 13 per cent higher than the WA regional average of 81 per cent. Businesses continue to face difficulty attracting seasonal and skilled workers — particularly those that rely on international and interstate migration. While COVID-19 absenteeism continues to create additional challenges for businesses looking to fill rosters. Similarly, 94 per cent of businesses in the Mid West and Gascoyne identified rising operating costs as another barrier to growth, compared to the WA regional average of 79 per cent. Businesses in the agriculture, transport and construction industries have reported rising costs in recent months. The top three most in demand occupations in the Mid West was also revealed, with electricians coming in at the number one most wanted followed by tradespeople and admin staff. Meanwhile, 76 per cent of businesses in the Mid West and Gascoyne region expect labour costs to rise in the next quarter, although this was less than the Perth metro area average of 83 per cent. Looking ahead to the next three months, hiring intentions remain solid in the Mid West and Gascoyne with 41 per cent of businesses expecting to increase their employment numbers. Mid West Chamber of Commerce and Industry CEO Joanne Fabling said skills shortages was one of the greatest challenges faced by businesses in the region. “The underpinning labour shortages have made a real impact in anybody being able to expand in any way and take up take up further advantages,” she said. “Housing is not in this report but that also remains a huge impact on our businesses being able to attract staff to the region. Not only COVID but also Seroja continues to impact with some repairs still not underway, or even completed.” BUSINESS IN THE MID WEST What do you see as a barrier to growing your business in the year ahead? Top three occupations in demand: Expectations for labour costs in the next quarter Expectations for employment in the next quarter