Western Australia's Chamber of Commerce and Industry has released a new survey that has confirmed its warnings that wages growth in the state is unsustainable and out of control.
CCI chief executive James Pearson said in a statement today that the Chamber was becoming increasingly concerned with a continuing upward trend in above average pay increases in WA.
The latest Austrlaian Institute of Management National Salary Survey found the average pay increase for large companies in WA over the past year was 4.7 per cent, compared to a national average of 4 per cent.
"Some employers are being forced to offer a range of non-cash incentives to attract and retain staff in the face of stiff competition from the higher wage offerings," Mr Pearson said.
"CCI has previously warned this will not only add to the cost of doing business, but could discourage new firms from investing in the State."
Mr Pearson said current forecasts showed WA would need almost half a million extra workers over the next decade, and based on current trends, the state will fall more than 210,000 workers short.
"It is these workforce shortages that are driving these upward wage pressures at a time when business can least afford it," he said.
"A broad strategy centred on the "Three P's" of population growth, participation and productivity is needed to address this critical labour shortage."
