What started out as a joke has turned into a cry for help from a northern New South Wales bakery desperate to attract staff.

Kingscliff business owner Allan Morrison is offering a daily supply of sourdough bread to anyone who can secure him a baker.

The offer lasts for the rest of the year, but will be withdrawn if the prospective employee then leaves the job.

Mr Morrison said he had been looking for a baker for about six months, but so far he had only received applications from overseas or from people with no baking experience.

He said the situation was forcing his bakery to limit its opening hours, preventing it from expanding and putting more pressure on his existing staff.

The situation has come to a head because one of his bakers is planning to take leave to visit his family in Nepal.

"We are interested in using any means to try find a baker that might want to come and work for us," Mr Morrison said.

He said the lack of bakers was down to people retiring during COVID and the continuing absence of working holiday makers from overseas.

"We might have to up the offer to include doughnuts," he said.

'Devastating impact'

Business NSW said staff shortages were the worst seen in half a century.

A recent statewide study found 90 per cent of more than 600 surveyed business owners had unfilled vacancies.

Regional manager Jane Laverty said the situation was even more severe in the Northern Rivers, where many businesses were struggling to continue to operate.

"It's having a devastating impact on our businesses," she said.

"It's not just skilled people — it's that entry-level position that they're finding hard to fill, and that really concerns me.

"[The NSW government has] been throwing money at fee-free training — everything they can to provide people with the skills they need to take the job.

Ms Laverty said business operators were running themselves and their staff ragged.

"They're closing their businesses for one, two and three days in the week just to ensure they can look after the staff that they do have, and also look after themselves," she said.

Cherry Street Sports Club general manager Tere Sheehan said he could employ as many as 12 new staff tomorrow if the applicants were there.

The group, which operates bowling clubs in Ballina and Lennox Head, said the 90-strong team wasat risk of burning out after months of being understaffed.

Push for incentives

Mr Sheehan said the cost of living and accommodation were squeezing workers out of the region.

"We've had executive positions filled where they have started with our business and travelled into the area to work and they have had to leave the position because they have not been able to find anywhere to stay that is in their budget," he said.

Mr Sheehan said his business paid more than award wages and offered bonuses and other incentives, including four-day working weeks, to try to attract staff.

"We've got some of the best conditions probably in the area to work for our company, but it's still a struggle," he said.

Mr Sheehan said he would like to see government programs that encouraged people to return to the workforce, such as continuing to pay benefits into a housing trust for 12 months while allowing them to also earn a wage.

"To me it's simple," he said.

"Let's incentivise people to get back to work."