Workforce needs to grow: CCI

The Chamber of Commerce and Industry says urgent action is needed to grow the size of the workforce, with further signs emerging that Western Australia is facing a severe labour shortage.

CCI chief economist John Nicolaou said businesses were concerned that unsustainable wages growth will become a sign of the times because of increased competition for workers.

He said a new report showed IT workers' wages in the mining industry had increased by 20 per cent as a result of a shortage of experienced workers in the sector.

"While the State's dominant resources sector is able to offer higher wages to get the workers they need, we must spare a thought for employers in other sectors of the economy that simply can not pay more to get the people they need," Mr Nicolaou said.

"Employers in the services and aged and community sectors are telling CCI they are finding it harder than ever to not only find the extra workers, but also retain the ones they've got."

Mr Nicolaou said WA would need nearly an additional 500,000 extra workers over the next decade, and based on current population trends, the state will fall more than 210,000 workers short.

"WA urgently needs strategies to grow our population, boost flagging productivity and lift participation rates," he said.

"Time is running out for government, with the help of business, to address this problem and ensure the state can grow to its full potential."