Recruitment difficulties are having a tangible impact on businesses across the country, particularly outside capital cities and in high-skill, labour-intensive industries. This month’s spotlight looks at how recruitment challenges affect businesses.
Most employers who faced challenges filling roles during their most recent recruitment round also reported some form of negative impact on their business, including reduced productivity, lost revenue and increased pressure on existing staff.
Recruitment difficulties were more common, and more damaging, in Rest of State areas compared to capital cities. Employers in industries such as Construction and Manufacturing were especially affected, with 1 in 3 reporting that hiring challenges directly affected productivity or revenue.
Manufacturing had highest reported impacts across both business performance (34%) and strain on existing staff (35%).
Service industries were more likely to report workforce strain than financial impact, particularly in sectors like Health Care and Social Assistance, where 35% of recruiting employers said staffing gaps had affected their current workforce.
Employers recruiting for high-skill roles and frontline service occupations were also significantly more likely to experience knock-on effects, underscoring the broader challenges in attracting and retaining skilled workers.
These results highlight the growing business costs of persistent recruitment difficulties, especially in critical sectors and regional areas.
For more insights, read the spotlight.
