WA skills shortage: 55,000 more workers needed to fill shortfall

WA needs 55,000 more workers, and the skills shortage caused by interstate and international border closures will cost local employers $1.5 billion over the next year, according to the State’s peak business body.

The Chamber of Commerce and Industry WA said its latest survey found longer term business confidence had fallen to a 12-month low, with the labour crunch a much bigger concern than a COVID-19 outbreak.

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If borders stay closed, businesses on average stand to lose $146,000 from the skills shortages over the next year, with almost half boosting existing base wages in a bid to retain staff. Respondents were typically trying to fill seven positions. Those in the accommodation and food sector were the most affected, followed by manufacturing and resources.

CCIWA said the crisis couldn’t be solved without overseas workers, with one-in-four vacancies needing to be sourced from outside Australia. The September survey responses showed just one-third of WA’s vacancies were expected to be filled by local workers and a quarter of businesses had turned down offers for new work due to lack of staff.

“A cocktail of rising material costs, ongoing skilled and un-skilled labour shortages, and the reintroduction of hard border restrictions with NSW and Victoria has dented the confidence of WA businesses,” CCIWA chief economist Aaron Morey said.

Three-quarters of businesses wanted interstate border closures abolished once 80 per cent of WA’s eligible population were fully vaccinated. Just over seven in 10 believed the international border should reopen when the jab milestone was reached.

And almost three-quarters want lockdowns abolished when the 80 per cent vaccination threshold is hit. Premier

Mark McGowan has indicated the hard border with NSW and Victoria could last until as late as April, even as NSW next month scraps quarantine for vaccinated international arrivals.

CAMCO Engineering HR manager Tina Fusco said the Canning Vale-based firm, which makes components for the resources industry, had 18 vacancies, including posts it had been unable to fill for a year-and-a-half.

Pre-pandemic, each role would attract up to 50 applications a day but Ms Fusco was now only receiving about 25 CVs in total for all vacancies. Retention is also a challenge, with the mining giants tapping into the same talent pool.

“We can’t compete with the likes of the big mining and resources companies because we just price ourselves out of the market when things do eventually change,” she said.

“There’s no point in actually creating a bidding war.”

Ms Fusco said CAMCO had given employee contracts to those in Britain who had their visas approved, but they were unable to enter Australia because of the arrivals cap.

She added: “It would be great to actually have an idea of when things are likely to change — if they are likely to change.”