ACT government offers grants to help employers plug skill shortages, attract staff to Canberra

The government said it would prioritise applications from industry sectors that can show high growth potential and a strong possible contribution to the ACT's post-COVID economic recovery, with total funding of $172,000 available.

Businesses can apply for grants between $1000 and $9999 who can also provide a cash contribution to efforts to attract skilled workers.

Teams of businesses who can show they are collaborating to attract skilled workers can apply for grants between $10,000 and $50,000 matched dollar-for-dollar with the businesses' contribution.

Business Minister Tara Cheyne said the grants could cover marketing campaigns, industry recruitment strategies and research into what skill shortages ACT employers face.

Chief Minister Andrew Barr said the workforce attraction cooperative grants would help support projects to attract skilled workers to the territory.

"Businesses are responsible for developing and recruiting the workforce they need to reopen and grow. This grant is designed to harness the impact of businesses working together to find the staff they need," Mr Barr said.

Applications for the grants will close in February 2022.

Canberra Business Chamber chief executive Graham Catt welcomed the grants but said the government needed to invest in a long-term skills and workforce strategy.

"We need a clear plan that sets out how we'll address these challenges through policy and investment over the next five to 10 years. We think it's also the right time to consider how Canberra's value proposition is marketed nationally, and internationally," Mr Catt said.

"It's critical that the plan is developed through genuine collaboration between government, industry and the education sector. Until we start to think and plan strategically for the long term, our struggle with the challenges of finding skilled worker will continue to be a barrier to business growth and the ACT economy."

Master Builders ACT chief executive Michael Hopkins said the ACT economy would suffer without a workforce attraction plan, substantial increase in funding for apprenticeships and training and private sector engagement.

"The mismatch between people looking for work and job vacancies exists because the ACT as failed to invest appropriately in skills and training, leading to a perfect storm for both workers and employers," Mr Hopkins said.

The ACT unemployment rate was the highest in Australia, figures from the Australian Bureau of Statistics showed last week.

But economists have said the figure was driven by a drop in employment and a rebound in the participation rate, which meant more people in the region were actively looking for work.

Speaking before the release of the unemployment figures last week, Mr Barr said the ACT would be a good place to be an employee during the post-lockdown recovery, with skills shortages driving up wages.

Mr Barr said the share of total economic output going towards wages had been declining for four decades, which had driven up inequality, but the market would force this to change in the post-lockdown era.

"We're going to see employees be able to earn more. We're seeing it in hospitality already, and I think a lot of jobs that were seen as quite dispensable or low paying or low skilled are going to be seen as indispensable, get more pay and an even stronger desire from employers to retain their staff and to attract new ones," he said.

Wages in the ACT's private sector grew 2.1 per cent in the year to June, while public sector wages grew 1.1 per cent in the same period. The territory's wages growth was the second highest in Australia, but average adult weekly earnings in the ACT remain the nation's highest.

Prime Minister Scott Morrison on Wednesday said there would be strong jobs growth in the lead up to Christmas as companies moved to hire new workers.

"With even fewer restrictions and the threat of lockdown fading, there's never been a better time for businesses to hire as more people get out and about shopping, travelling, eating and enjoying themselves this festive season," Mr Morrison said.

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