Employment in Ballarat's sectors, including retail trade, manufacturing and accommodation and food services, decreased over a 12-month period from August 2020 to August 2021, the latest ABS Labour Force Survey data shows.

Adding to this staff shortage dilemma is the state government's COVID-19 isolation rule for close contacts which requires a mandatory seven-day quarantine for close contacts of positive cases even if they don't have the virus.

Earlier this week, Innovation, Medical Research and the Digital Economy Minister Jaala Pulford said it would be premature to wind back COVID-19 isolation rules for close contacts without the backing of medical experts.

Commerce Ballarat chief executive officer Jodie Gillett said staff shortages were currently right across the board in every sector.

"It's really hard to fill jobs at this time and then you add people who are isolating, and in many cases now with kids at school, it's often families isolating multiple times," Ms Gillett said.

"That's OK if you can work from home but if you can't and if you're a small business owner or running a small business, it's really difficult."

On Thursday, Ballarat recorded 225 coronavirus cases in the 24 hours to midnight, Wednesday. The city has increased from 1100 cases on Wednesday to 1130 on Thursday.

Ballarat's Basilio Sourdough owner and operator Giorgio Basilio was forced to close down his specialty bread business on Saturday after staff members tested positive to the virus.

He said prior to this, his offsider was a close contact to a positive case and was required to isolate for one week.

"So for one week about three to four weeks ago, I could only supply to major supermarkets without trying to supply to the smaller people just to keep the money coming," Mr Basilio said.

"Unfortunately that is the harsh reality at the moment."

Mr Basilio said closing for one week would economically impact his micro wholesale bakery.

Another hospitality venue owner, who contacted Commerce Ballarat on Wednesday, said they had to work a 12-hour day shift because other staff members had the virus.

Ms Gillett said this type of scenario was putting business owners under stress, along with the added pressure of debts that people were now having to pay.

She said there had been an increase in businesses accessing the state government's small businesses wellbeing project which offers free mental health and wellbeing support.

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"The Partners in Wellbeing program is only funded until the end of June at this stage. We are really hoping the state government will extend that program so we can continue to offer that mental health support," Ms Gillett said.

"We were hoping to see the requirement lessen but it's going up so there are a lot of businesses out there feeling a lot of pressure and they're exhausted. It's been a long couple of years.

"We are Certainly hearing of businesses that are having to reduce services or having difficulty filling shifts for manufacturing because of staff shortages so we really want them to be able to trade at the highest level possible and that's not the case at this stage in many instances."

Ms Gillett said it was great life was getting back to normal for the commuity.

"It's wonderful seeing people out and about doing what they do and enjoying each other's company and we want to see more of that, see people out there shopping, spending and enjoying if they can," she said.

For information on business support and the 'partners in wellbeing' program can visit http://www.commerceballarat.com.au/

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