About $200 million has been lost to the Launceston economy as a result of vacant jobs in the region, according to a new study.
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The study undertaken by Everybody's Home, revealed the connection between increased rents, low vacancy rates and unfilled job vacancies in Launceston was having on the regions economy.
Executive Officer of the Launceston Chamber of Commerce, William Cassidy, said a number of industries were struggling to find new staff.
Mr Cassidy said hospitality, tourism, health and community services were all industries that were being impacted by job vacancies and that the median employee age was increasing.
"I've heard from a number of different members that they've tried to recruit staff from the mainland but unfortunately there is just nowhere for new arrivals out of state to live.
"There's significant shortage of homes suitable for potential skilled migration., particularly if they want to bring a family with them.
Mr Cassidy said some Launceston businesses were temporarily shortening their hours or shutting their doors as a result of job vacancies.
He also said that housing and accommodation were starting points if Launceston were to receive an uptake in jobs.
"Whether that means more medium density or high density developments, or a reconsideration of what residential properties are being used for...it's crucial that we get housing fixed.
Mr Cassidy said he believed Launceston would see more population migration to the region if housing costs were lower.
Nick Prokopiec, Chief Executive of Searson Buck Group, a specialised recruitment agency, said he was seeing an increase in job vacancies in a number of different industries.
Mr Prokopiec said housing affordability and rental availability was a real challenge in attracting new workers and that people who were relocating to Tasmania, needed to secure work or accommodation very early.
"We do definitely have a challenge in regards to the number of workers as for the available jobs that we have. We have got to be more innovative in our sourcing techniques now to support our clients so it will become more difficult," he said.
Mr Prokopiec said Tasmania needed to look at the skilled migrant workforce, mature age workers, and the youth to fill the job vacancy rates.
"We do need to focus on those three target markets and that will be part of their solution to fill some of this workforce shortage or job demand shortage," he said.
Kate Colvin, national spokesperson for the Everybody's Home campaign said the inability to find a rental and eye watering rent increases for the few places available was deterring people from taking up jobs in regional communities.
"Employers tell us constantly that prospective employees tell them they can't move to the community if they can't find a place to live.
"Expanding social and affordable housing by building an additional 25,000 new dwellings per year would give people on modest incomes more choice. It would relieve serious pressure on our housing system and give regional communities the chance to flourish economically," she said.
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According to the study, since March 2020, the number of job vacancies in Launceston and North-eastern Tasmania have more than doubled from 382 to 876 and that the availability of affordable housing was undermining the ability of businesses in the regions to attract workers.
The report revealed that job vacancies had cost Launceston $200 million per year, or $3.8 million per week, a figure based on previous estimates that cost vacancies at three times an employee's salary.
According to the report, tents have increased in Launceston and Northeast Tasmania by 21 per cent since March 2020, with median rents up $80 per week.
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