Research indicates 'widespread' staff shortages across the state
Despite operations returning to pre-COVID levels, labour costs are dragging down the confidence of businesses across Queensland, according to the latest Pulse Report for the September quarter. The report, released by the Chamber of Commerce and Industry Queensland (CCIQ), revealed a "significant deterioration of business confidence but solid business performance" in the state.
"Usually at this time of year confidence would be stronger ahead of a busy Christmas trading period. But on this occasion, we expect labour shortages and wider macroeconomic influences are impacting future economic confidence," CCIQ CEO Heidi Cooper said.
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The report revealed that nearly seven in 10 businesses increased their labour costs in the September quarter, reflecting "widespread staff and skill shortages across Queensland."
"Businesses are struggling to find skilled labour which means some businesses are offering higher wages to retain and attract employees in a competitive labour market," Cooper said. "Other businesses are focusing on retaining and developing their existing workforce, including rethinking job roles and responsibilities and training existing staff to meet demand. We know workforce challenges are a top priority for Queensland businesses. The ability to recruit and retain staff is the most significant constraint on business growth."
The growing labour costs, coupled with higher operational fees, resulted in weak profitability.
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"We know there are also ongoing skilled labour shortages, met with rising wage and labour costs, alongside increasing fuel and energy prices which is hindering profitability and forward confidence," Cooper said.
Even with more than 60% of businesses operating at levels at par or even greater than March 2020, Cooper said there’s still work to do to support long-term business confidence.
"This is an important time for Queensland businesses with a decade of opportunity ahead of us," Cooper said. "Now is the time for us to be working to resolve the impacts which are affecting businesses' ability to thrive and plan for those future opportunities."
