A lack of housing is holding back the Clutha district as its employers cry out for more workers, Mayor Bryan Cadogan says.
''Our district's economy is not reaching its potential,'' he said.
Mr Cadogan was the driving force behind a speed-dating-style job fair held in Dunedin this month.
The fair was aimed at luring university graduates and high school leavers from outside the district to work in the Clutha.
Many of those who accept jobs in the area might find themselves having to commute.
Encouraging them to move to Balclutha was not a focus, partly because of the housing shortage, Mr Cadogan said.
''We're not specifically trying one way or the other [to encourage employees to move].''
Mr Cadogan said he was confident jobs would be filled as the opportunities were presented to prospective employees but said people would be left to sort out their living arrangements.
It was up to the individual to decide if they wanted to move to Balclutha or commute every day.
One of the key issues for the council to address in its 10-year plan was population growth.
Mr Cadogan said residential sites around the district would be opened soon.
The opportunity for regeneration had not existed for some time.
Many of the Clutha district's major employers were struggling to find workers with industry-specific skills.
''The major employers are ... screaming out for workers and they need the skills,'' Mr Cadogan said.
Employers were looking for qualified engineers, carpenters, plumbers and computer operators that were specific to the industry, Mr Cadogan said.
While his first obligation was to secure jobs for residents in the Clutha, its employers could not find the skill sets they required.
''It's a New Zealand-wide phenomenon that there is a skill shortage,'' he said.
''We're trying to be proactive and be the one that is out there actually doing something about it [with the job fair].''
A Ready Steady Work programme had been set up in Balclutha for unemployed youth already living in the area.
Clutha Development executive officer Linda Moore said there was a need to encourage people to move to Balclutha but her organisation's main focus was facilitating the job fair.
''We want to try to encourage people to live here but to do that we have to have housing available for them,'' she said.
She said she was investigating what housing options were available.
Mrs Moore met Finegand and Telford Rural Polytechnic executives last month about the housing market but did not have any solutions, she said.
