Western Australia still faces a crippling skills shortage despite Perth being reclassified a regional city to allow it access to a greater pool of migrant workers, the state government and industry have warned.

Immigration Minister Chris Bowen yesterday announced Perth would be added to a list of regional employment hardship areas, alongside cities in the Pilbara and Kimberley, under the Regional Sponsorship Migration Scheme.

However, the city will be forced to fight for a share of the 16,000 visas offered across the entire country under the program. There is no guarantee how many new workers Perth will gain through the measure.

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