WA’s housing shortage is having a direct impact on regional businesses, with almost three quarters identifying housing as a barrier to attracting and retaining workers.
CCIWA’s Regional Pulse report for the June quarter has found 73% of business in regional areas said a lack of housing was making it harder to attract and keep staff.
Of those, 50% said they were currently experiencing staff challenges caused by housing availability compared to 33% of businesses in metropolitan Perth, while 23% said they expected the housing shortage to bite in the future.
CCIWA Chief Economist, Aaron Morey, said housing supply is an issue across the country, but is particularly stark in regional WA.
“When you consider the size and remoteness of WA, having suitable housing close to where people work is absolutely vital,” he said.
“The Kimberley is the hardest hit, with 94% of businesses saying housing was impacting their ability to attract and keep workers, followed by the Pilbara (74%), Goldfields-Esperance (59%) Wheatbelt (50%) and Great Southern (48%).”
Regional businesses also reported the cost of labour has continued to climb, with three in four (76%) saying wages costs have gone up in the three months since March.
The Kimberley (82%) and South-West (81%) reported the largest number of businesses experiencing increased wage costs.
Mr Morey said wages across WA have increased significantly in recent years, meaning more businesses are now paying payroll tax.
“It’s a double-whammy for these regional businesses – they’re paying more for wages, which then increases their payroll tax liability,” he said.
“It’s no surprise that reducing payroll tax has emerged as the number one issue for businesses across the state heading into the state election in nine months.”
Two in three (66%) regional businesses said they were struggling to fill a skilled occupation this quarter, up one percentage point since March.
Skills shortages were most acute in the Kimberley (94%), Wheatbelt (70%) and South West (70%) regions.
Overall business confidence in regional WA has slipped slightly, with 29% of regional businesses expecting conditions to improve in the short term, down five percentage points since March.
“Businesses in the Great Southern, Kimberley and Goldfields-Esperance regions were the most optimistic about economic conditions for the next quarter, whereas businesses in the Wheatbelt were less optimistic,” Mr Morey said.
Wheatbelt Business Network Chief Executive, Rik Soderlund, said the decline in business confidence in the Wheatbelt region as serious concern.
“Seasonal conditions have undoubtedly played a part, but the uncertainty surrounding the live sheep export ban has significantly exacerbated the situation,” he said.
“This policy threatens not just the agricultural sector but the entire regional economy, creating a ripple effect that impacts local businesses, employment, and community services.”
Businesses in regional WA were significantly less optimistic about the three-month outlook than those in metropolitan Perth.
