According to recent findings from the South Australian Business Chamber and William Buck’s December quarter Survey of Business Expectations, labour shortages continue to pose a significant challenge for businesses in South Australia.
The survey revealed 53% of businesses in South Australia are currently grappling with labour shortages. While this marks a slight decline from 60.2% in June and 55.2% in September, it underscores the persistent nature of the issue.
One notable change in the dynamics of labour market challenges is the Chamber’s updated approach to survey questions. In the December quarter, respondents were asked to differentiate between shortages in relatively high-skilled and relatively low-skilled labour.
This shift in methodology has provided valuable insights into the evolving nature of the problem.
During the period between July and September 2023, a lack of suitably skilled workers emerged as the primary concern, cited by 46.2% of respondents. However, by December, a combination of high and low-skilled labour shortages accounted for 33.9% of responses, with 29.1% of businesses highlighting the difficulty in sourcing high-skilled workers as their most pressing issue.
Notably, there has been a 5.3 percentage point increase in businesses citing a lack of applicants for vacant positions as their main labour market challenge. Additionally, more businesses are experiencing constraints related to award rates and conditions, which hinder their growth and hiring decisions.
The entrenched nature of skills shortages in the state’s economy has led to widespread frustration among respondents, particularly regarding work ethic concerns among younger staff members.
When asked about their main issues regarding staff training, the overwhelming response was the cost, cited by 56.5% of businesses. A further 14.3% mentioned logistical challenges, such as having to send staff to Adelaide or interstate for training, which also incur significant costs.
However, it’s worth noting that 28.9% of businesses reported no issues with staff training.
