11/10/2010 - 09:49

Labour shortage concerns WA businesses

11/10/2010 - 09:49

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Forty per cent of WA businesses are looking to employ inexperienced workers over the next 12 months as they move to implement measures to grow and retain their workforce.

Forty per cent of WA businesses are looking to employ inexperienced workers over the next 12 months as they move to implement measures to grow and retain their workforce.

According to the latest Commonwealth Bank - CCI Survey of Business Expectations, small, medium and large businesses are considering employing trainees, apprentices and graduates.

The results show nearly half are intending to employ local workers.

A quarter of local businesses are planning to re-train their existing staff to address labour shortages.

The survey found one third of WA businesses are struggling to find suitable workers in the September quarter.

Most expect the problem to worsen in the years ahead.

Nearly one quarter are looking interstate (12 per cent) and overseas (11 per cent) to deal with the labour shortage.

"Business is implementing a range of their own measures to try and avoid labour shortages, but Government must take a leadership role to address the significant bottleneck which is rapidly emerging," said CCI chief economist John Nicolaou.

"And the effects will be far-reaching.

"Failure to address current and future labour requirements not only limits the capacity of business to grow, but has economy-wide implications by raising prices and interest rates,' he said.

The survey found only 21 per cent of WA businesses are expecting conditions to improve in the next quarter, which is down from 24 per cent.

"A number of business's have been faced with continued uncertainty on the economic and political landscape, with the likes of the Federal election and the Resources Super Profits Tax discussion reborn," said Greg Caust, general manager corporate financial services WA at the Commonwealth Bank.

"Whilst the key issues faced by business are not entirely new, they are against a very different global and economic landscape post the GFC. Daily discussions with our clients and the broader business community would seem to indicate cautious optimism going into 2011," he said.

 

 

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