Employers in Australia expect the skills shortage to hit harder this year, according to a report by Robert Half International Inc. The report found that 70% of employers expect the financial impact of the skills shortage to increase this year, and 83% say competition for qualified finance, business support and technology talent increased over the past year.

Meanwhile, 44% of Australian employers believe the skills shortage is the most significant challenge they will face. For chief information officers it was even more, with 52% saying the talent shortage is their primary staffing challenge.

Robert Half also found that 83% of employers say competition for qualified talent has increased in the past year with specialised talent being in especially short supply. Only 2% of employers believe competition for talent has decreased.

“With business confidence soaring despite whispers of a potential recession in Australia, the skills shortage for finance, technology and business support talent continues to plague the labour market, causing financial impacts on businesses at a time where the focus on cost management has heightened,” said Nicole Gorton, director, Robert Half.

The notion that the skills shortage would ease after the pandemic has not proven to be the case, at least not yet, Gorton said.

“Though some companies are reverting to hiring freezes or reducing their headcount, finding the right skilled talent remains essential at a time when companies are actioning their growth initiatives for the new year,” she said.

Robert Half’s survey took place in November and included 300 hiring managers. Among them were 100 CFOs and 100 CIOs.