4 in 10 businesses significantly impacted by labour shortages

NAB group executive for business and private banking Andrew Irvine said these findings align with what he’s hearing across all parts of Australia, commenting that labour shortages have been the biggest issue for businesses this year.

“When I’m out talking with customers, the number one issue they continue to raise is labour shortages — and this is across all sectors, and all parts of the country,” Mr Irvine said.

“Businesses owners are crying out for more workers — people on the shop floor, labourers to finish off jobs, drivers, pharmacy workers — you’d be hard pressed to find a business owner who hasn’t had trouble finding people to get the job done.”

Businesses in Western Australia are the worst affected, according to the data, with 43 per cent of SMEs in Western Australia reporting labour shortages had a “very significant” impact. Victorian business (37 per cent), Queensland (35 per cent) and NSW (33 per cent) were the next most impacted.

Health and construction sectors reported the greatest concern, with around half labelling labour shortages as a key issue.

For businesses in agriculture, hospitality and tourism, the data was more promising. In the last quarter, labour shortages in accommodation fell 32 per cent, likely due to state and international borders reopening.

Almost half of SMEs surveyed said labour shortages could be solved by increasing traineeships and apprenticeships and increasing migrant intake.

“As borders have opened, there have been some improvements — but there’s much more to do,” Mr Irvine said.

“We need to look at our migration settings, how we can get more people in the labour force and our skills and training systems.

“It’s great to see the government working with various businesses and unions to help address some of these issues. And September’s Jobs and Skills Summit will be a much needed and critical discussion that should help highlight ways forward.”