Hunter businesses are continuing to battle skills shortages, with many employers struggling to find workers with the experience needed to fill critical roles.

New research from Business NSW has revealed almost three in four Hunter businesses are experiencing skills shortages, leaving some businesses at risk of losing customers and growth opportunities.

Business Hunter CEO Bob Hawes said the findings reflected what employers across the region had been saying for some time.

“These findings are consistent with what businesses across the Hunter have been telling us for some time,” Mr Hawes said.

“While employment levels remain strong, many employers are continuing to struggle to find workers with the specific skills and experience they need.”

The 2026 State of Skills report found 75.4 per cent of Hunter businesses are facing skills shortages, slightly above the NSW average of 73.6 per cent.

Although the figure is lower than the post-COVID peak recorded in 2022, it remains well above the levels reported before the pandemic, highlighting what Business Hunter says is an increasingly entrenched problem.

Mr Hawes said the issue was no longer simply about finding workers.

“The challenge is no longer simply a shortage of workers,” he said.

“Increasingly, it is a mismatch between the skills available in the labour market and the skills employers are seeking, particularly in industries experiencing growth and transformation.”

Competition for skilled employees is also increasing.

More than one-third of Hunter businesses surveyed said they had lost suitable applicants to other employers during recruitment, well above the statewide average.

“Businesses and recruiters tell us many roles with particular skills and experience requirements are being filled through headhunting and poaching, rather than by drawing on the pool of unemployed or other applicants responding to job ads,” Mr Hawes said.

“This is not sustainable if we want to grow key industries.”

Employers also identified low interest from applicants, salary expectations and limited availability of workers as key recruitment challenges.

Housing affordability is emerging as another concern, with the number of Hunter businesses citing access to affordable housing as a barrier to recruitment almost doubling since 2024.

Business NSW is calling for a $200 million investment in apprenticeships, reforms to regional skills programs and greater incentives for older Australians to remain in the workforce.

Mr Hawes said addressing the skills gap would be vital as the Hunter’s economy continued to evolve.

“Hunter businesses are investing, expanding and creating jobs, but difficulties filling vacancies in critical occupations is constraining productivity, limiting business growth and placing additional pressure on existing staff,” he said.

“If we can better connect people seeking work with the skills businesses are demanding, we can help address shortages while supporting economic growth across the Hunter.”