46.5% of Small Businesses Struggle to Find Skilled Workers

In the bustling world of Australian small business, success is often fueled by hard work, creativity, and skilled teams. But what happens when the skilled workers you need are in short supply? For many small business owners, the skilled worker shortage is no longer a distant issue—it’s a daily struggle, reshaping how they operate, grow, and plan for the future. 

What’s Driving the Skilled Worker Shortage? 

According to the 2024 State of Small Business Report, 22% of small businesses identified the skilled worker shortage as the most significant operational challenge of the year. While this marks some improvement from previous years, finding workers with the right expertise remains tough. 

• Industry Experience is Scarce: Almost half (46.5%) of business owners struggle to find workers with relevant experience. 

• High-Level Roles Go Unfilled: 29.3% report challenges filling skilled, senior-level positions. 

• Budget Constraints: Over 53% lack the resources to offer competitive wages or benefits, intensifying the difficulty of hiring. 

The Ripple Effects on Small Businesses 

The shortage of skilled workers doesn’t just affect hiring; it impacts the entire business, slowing growth and piling pressure on existing teams. 

• Limited Growth: Over one-third of small businesses report being unable to expand due to staffing shortages. This means missed opportunities and an inability to scale up to meet demand . 

• Increased Workloads: With fewer hands on deck, existing staff often take on additional responsibilities, leading to burnout and decreased productivity. 

• Fierce Competition: Businesses are also competing with larger corporations for talent, which often drives salary expectations beyond what small businesses can afford. 

What is the State of Small Business Report? 

Across September and October this year, Localsearch, in collaboration with Thrive PR & Communications, carried out our third annual State of Small Business Survey, reaching over 28,000 small and medium-sized businesses (SMBs) within our vast client network. Our mission was clear: to gain deeper insights into the everyday challenges that SMBs encounter. Whether it’s the ongoing skilled labor shortage, looming economic uncertainties, or cyber security, our goal was to understand the critical issues shaping their business landscape and how we can support their success.