"Our businesses are experiencing some of the highest skills shortages that we have seen for some time, with over 47% of Western NSW businesses responding they have not been able to find suitably skilled people," said Business NSW's Vicki Seccombe, who represents Western NSW.

Ms Seccombe said in and around Orange there were shortages in fields including health and community services, trades and construction, agriculture, manufacturing and hospitality.

"The highest demand is around trades, so welders and fabricators, electricians, plumbers, fitters and boilermakers; plus chefs, cooks, and health workers are all highly sought-after," she said.

"These shortages mean that business faces a number of negative impacts, such as missing opportunities for new work, losing customers; it hinders growth and increases workloads for existing staff and the business owner."

Despite the shortages, Business NSW believes the state is "getting back on track".

For the first time in a year the quarterly Business Conditions Survey showed a bounce in business confidence.

The survey showed business perceptions about the performance of the NSW economy rebounded strongly from the record low reported in June, as uncertainty about the COVID pandemic swept the globe.

"The outlook has also improved, with businesses expecting further lifts in the economy for the remainder of 2020," said Ms Seccombe.

"In Western NSW, the pick up in the agricultural sector due to easing drought conditions and the increased tourism across the region have continued to bolster the local business outlook."

The survey also examined some of the factors common to businesses most affected by COVID.

"While business services, hospitality and tourism businesses are heavily impacted overall, business performance in these industries varies dramatically depending on location and type of customers serviced," Ms Seccombe said.

"While many businesses are about to enter a difficult period as support measures are tapered back, it's promising to see a strong foundation for recovery emerging in NSW and in particular, Western NSW."

Receive our free newsletters delivered to your inbox, as well as breaking news alerts. Sign up below ...