Access to more workers with relevant skills is stifling business growth across the New England North West region according to new data released this week.
The latest Business Conditions Survey from the state’s peak business body, Business NSW, reveals 58% of NSW business self-rated as operating below full capacity due to difficulties in accessing the talent and continuously upskilling existing workers. This number is higher at 63% for businesses in the New England North West.
The New England North West has a slightly higher than average unemployment rate at 4.4% nationally is 4.1%), which is a significant decrease from over 5% earlier in the year. There is also a lower participation rate at 63% (nationally 67%), meaning that there are less people looking for work, and there may be more potential workers in our community. There are, at the time of writing, 831 jobs advertised across the region on Seek, 76 NSW Government jobs in the region on their job board, and 1835 vacancies in the New England North West listed on the Workforce Australia job board, which includes many low skilled and low paid jobs not advertised elsewhere.
Diane Gray, Business NSW Regional Director for New England North West, said the lack of staff isn’t dampening the outlook.
“Businesses are already under pressure from rising operational costs, yet optimism for growth is evident with 36% of businesses wanting to hire in the next three months.”
Despite the challenges being faced, businesses confidence is on the rise at -56.7 from 59.5 last quarter acccording to the Business NSW survey.
“Yet, with the challenges being faced, businesses in New England North West are geared up and ready for growth, and this is an optimistic position to start 2025,” said Ms Gray.
The survey found 58% of businesses are maintaining the same headcount and 23% are hiring additional staff. However, nearly 60% of businesses are operating below full capacity, highlighting significant opportunities for improvement and efficiency gains.
International students an option
Businesses also say they are turning to international students to fill key workforce gaps, with nearly half of employers statewide saying they’re vital to easing the labour crisis and driving economic growth.
A proposal to cap international student numbers, which would have cut foreign student intake by around 23% and forced more international students to regional universities, was one of the measures voted down in the frantic push to get legislation finalised in the final sitting weeks of the year.
Education Minister Jason Clare said the decision of the Nationals to side with the Greens and Liberals in opposing the bill would hurt regional universities.
““The National Party are supposed to fight for the regions, not cave into the big cities.
“By getting into bed with the Greens, the National Party are betraying their local communities.
“Our caps will increase the number of international students at regional universities and reduce them in the big cities. That’s what the Nationals say they want.
“If they actually want it, vote for it.”
The University of New England has around 1200 international students on campus in any year, around a quarter of the students in town. 224 started this year. The student cap would have seen their intake of international students capped at 700 per year.
Getting the bills paid a challenge
The Business NSW survey also found the top three cost concerns for businesses in the NENW remain insurance; taxes, levies and other government charges; followed by energy.
The survey found 43% of businesses are facing price negotiations, 31% are seeing more demand for cheaper alternatives, and 36% are waiting longer for invoices to be paid.
“Businesses are now waiting longer for invoices to be settled, which means added financial pressure on cash flow and for small businesses, this delay could be the difference between staying open or closing their doors.”
Business NSW is calling for reforms to ensure invoices, both government and non-government, are paid within agreed timeframes.
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