"As we continue to grow our economy, which is really positive, we must make sure we have the people to fill those jobs."
The shortage of people had led to the poaching of staff from others and delays in some construction work, she said.
The local tourism sector would also be hoping the Government would reduce the requirement for 10 days in MIQ for international visitors to get the tourism sector back to life, she said.
In addition, domestic tourists were also very important to the region, but the long Auckland lockdown had also had a big impact.
Usually half of all domestic visitors to Canterbury come from Auckland.
"This year we've obviously had significant challenges with Auckland being in lockdown for well over 100 days," Watson said.
"That has been horrific for those living in Auckland, and we've also felt the impact of that in Christchurch and Canterbury as we do rely heavily on domestic travel in this region."
However, there had been some real positives in 2021 for the Canterbury region, Watson said.
Retail spending had bounced back strongly, there had been great support for local business, and strong performance in key export industries including dairy, meat and manufacturing.