'Staffing, staffing, staffing' the biggest economic issue going into 2024

Local companies have been grumbling about a lack of skilled workers for some time, but there's now region-specific data to back up those claims.

At a networking event for New England business heads on Thursday, the Leader got a peak at the latest trends affecting the regional economy, and the skills issue stood far above the rest.

"I know it's a concern across the board, but it's particularly severe here," Business NSW's Chief Economist Dr Sherman Chan said.

Dr Chan broke down the findings from the peak industry body's latest Business Conditions Survey, referencing local data which hasn't been published yet.

"Unfortunately for this region the labour market has been even tighter than the rest of the state or the country. The latest unemployment rate for the region is 1.3 per cent."

She said according to the data, half of all agricultural businesses see skills shortages as one of their biggest barriers to expansion.

Nearly 50 per cent of construction and 46 per cent of manufacturing businesses said the same.

Those three industries make up nearly 40 per cent of Tamworth's economy when measured by output.

But Dr Chan said the problem isn't people not wanting to work, it's because there simply aren't enough people for the number of jobs going around.

"Usually when I go to regions, I say 'you guys have a low participation rate, you need to get more people looking for work,' but this region's rate is actually quite similar to the national and state average," she said.

She said women are still underrepresented in the workforce so there's a market to advertise jobs there, but the best way to plug the labour shortage is by attracting workers from overseas.

"Regions are sometimes under-promoted, skilled foreigners just don't know how nice the lifestyle is and that uncertainty makes younger workers difficult to find," Dr Chan said.

But with that promotion must come infrastructure, she said.

For businesses to be able to attract migrant workers, local and state governments have to invest in parks, hospitals, schools, and childcare.

Dr Chan said the current housing shortage is another major roadblock that will take a long time to address.

In the meantime, she says, the best thing businesses can do is improve productivity.

She said the best way to do this is investing in training and technology, as well as buying Australian-made primary goods for production.

"An overwhelming proportion of businesses told us they use imports because there's a lack of local options. This may not be true. They probably just haven't found out where their local options are," Dr Chan said.

Business NSW is ramping up efforts to integrate the regional economy and connect companies that can benefit from trading with one another.

The industry body's new regional director for the New England North West Diane Gray said economic luncheons like the one at the Powerhouse Hotel are the first step in this "exciting journey".