Skills shortages look set to remain a feature of the NSW economy in the near term. Of the employers who responded to the 2024 Workforce Skills Survey:

• 77% reported they had considerable difficulty in recruiting, or were unable to recruit the people they need;
• This figure was 81% for employers of five or more staff;
• More than 80% of employers in the Hunter, Western NSW, Western Sydney and Riverina Murray regions continue to experience significant difficulty in meeting their skills needs; and
• Sectors experiencing ongoing recruitment challenges include manufacturing, health, hospitality, construction and technical services industries, with shortages in these industries being particularly acute in regional areas.

Increased costs and declining margins have led some business to scale down, move operations to a different state, or even close their business entirely in the face of skills shortages:

• 75% of employers experiencing a skills shortage reported an increase in the workload being carried by existing staff, with many business owners having to ‘get back on the tools’ in order to keep the business running;
• 38% of employers anticipate significant negative impacts for their business if these challenges continue; and
• 4% fear their business may not survive if they are unable to meet their skills needs.

Our 2024 Workforce Skills Survey also saw many employers embracing innovation in the workplace. From automation to recruitment strategies and improving workplace culture, there is clearly an appetite for workplace innovation among businesses of all sizes in a dynamic and changing environment. Employers are taking the lead in responding to skills shortages. They are innovating and investing in training and recruitment. They are adapting pay and conditions to meet the needs of current and future employees. They are focussing on the workplace health and wellbeing. They are building communities – both within and outside their own organisation.

Our advice to State and Federal Governments is to take a greater role in helping to ease the pressure on businesses, and to help them to build resilience and sustainability for the longer term through investing in vocational education and training, and helping employers in regional NSW meet their skills needs.