It's a sweeping problem that isn't exclusive to skill level or industry, data from a new state-wide Business NSW report has revealed.

Tamworth Business Chamber president Stephanie Cameron told the Leader businesses are feeling the pinch and the problem needs to be solved urgently.

"In business, you can't afford to wait at all," she said.

"You can't make the most of opportunities as they arise and if you have got a heavy workload, and can't get the work out the door, it becomes a bottleneck."

Ms Cameron said she couldn't see an immediate silver-bullet solution, unless there was a way to fast track workers coming from overseas who already hold qualifications.

"What a lot of businesses are doing is actually securing university graduates before they've left," she said.

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Almost every business across the state had unfilled positions and about half said it was equally as difficult to find entry level staff as experienced workers, the survey found. More than a quarter hadn't even had any applications for open positions.

The annual survey of more than 600 businesses across the state was conducted through the last week of May and first week of June this year and painted a dire picture.

More than 90 per cent of businesses said they were dealing with a skills shortage - up from 73 per cent last year and just 55 per cent in 2019.

More than half said the shortages were causing significant negative impacts and more than 45 per cent said they had tried to lift wages, bonuses and incentives for existing staff.

Less than one per cent of respondents said staff shortages were not affecting business.

The Business NSW report said it reinforced the message that had been filtering in from the regions.

Business NSW regional manager Joe Townsend said the labour market had shrunk from 90,000 to a little more than 81,000 since the pandemic hit the region.

He applauded the state government's announcement of a further 70,000 fee free training spots, in addition to 100,000 fee-free apprenticeships.

"This will deliver job-ready builders, hairdressers, carpenters, chefs, electricians and workers in the early childhood and aged care sectors," he said.

But he said many of those searching for staff simply can't wait.

"Training takes time and action is needed now to support businesses who are crying out for staff," Mr Townsend said.

Despite this, Business NSW has suggested increasing funding for Vocational Education and Training (VET), extending the Boosting Apprentice Commencements (BAC) initiative, and simplifying the migration system.

Meanwhile, Mr Townsend said the decision to raise the pension threshold by $300 from July 1 could prove a faster fix.

"It'd be really great if we could leverage some of that mature workforce and fill some of these skill gaps," he said.

"With a number of people, bricklayers and the like, they do want to continue working to an extent and they understand it's only a transition thing."

However, for highly skilled workers, lifting the pension threshold wouldn't be motivating because their pay means they quickly exceed the threshold, he said.

Managing director of enterprise at Tamworth accountant firm Bell Partners, Matthew Sweeney, didn't think it was such a bad idea to bring back experienced workers as a short term solution.

"Most of them would retain most of the knowledge," he said.

Meanwhile, the state government extended help for the struggling hospitality industry on Monday by extending free refresher courses into next year in a bid to address staff shortages.

Tamworth MP Kevin Anderson said venues are doing their best but need help to fill the gaps.

"Many who left the sector have seen their mandatory certifications lapse," he said.

"We want to make it easy for those people to quickly and freely renew those certifications and remove any barriers that are preventing them from re-entering the hospitality sector."

Alcohol and gaming certifications that expired from February 2020 can be renewed until February next year without people having to retrain.

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