Australia has jobs. Australia has workers. Yet many Australian businesses still struggle to find people with the right skills. That may sound contradictory, but it reflects a deeper issue in the labour market. Skill shortages do not necessarily mean there are not enough people looking for work. It can mean there are not enough people with the required qualifications, experience or skills in the right occupation or location. While Australia’s overall skills shortage has eased from its recent peak, many shortages have proven persistent. Understanding why can help explain why skilled migration and international recruitment remain important parts of Australia’s workforce strategy.
The Shortage Is Easing, But It Has Not Disappeared
The latest annual data from Jobs and Skills Australia (JSA) provides some important context. In 2025, 29% of assessed occupations were in national shortage, down from 33% in 2024 and 36% in 2023. So, it would be misleading to say that every Australian industry is experiencing a skills shortage. However, 264 occupations remained in shortage in both 2024 and 2025, while 139 occupations have been classified as being in shortage for five consecutive years. This persistence is where the bigger challenge lies.
Why Do Skills Shortages Keep Happening?
1. Training Cannot Always Keep Up With Demand
Some occupations require years of education, training and practical experience before a worker can enter the workforce. JSA’s 2025 Occupation Shortage Drivers Report found that long training gaps are particularly relevant to occupations in health, education, construction and other technical and trade areas. In some cases, demand for workers is growing faster than the training system can produce qualified candidates.
2. Skills Do Not Always Match Available Jobs
Having a large pool of jobseekers does not necessarily solve a shortage if their skills do not match what employers need. JSA’s research identifies suitability gaps, where employers struggle to find applicants with the right combination of skills and experience. Engineering occupations are among those where this issue has been identified.
3. Some Workers Are Difficult to Attract and Retain
Pay, working conditions, workplace culture, location and career opportunities can all affect whether workers enter and remain in an occupation. JSA identified retention gaps as an important driver for large-employing occupations in care, personal care, construction and food.
4. Location Matters
A worker may be available somewhere in Australia without being available where the job is located. Regional Australia continues to experience greater recruitment difficulty than metropolitan areas. In the March quarter of 2026, the national vacancy fill rate was 68.2%, while regional areas continued to lag behind metropolitan areas. For employers in regional communities, finding suitably qualified workers can therefore be particularly challenging.
Which Industries Face the Biggest Shortages?
The shortages are spread across the economy, but several industries appear repeatedly in Australia’s shortage data.
1. Healthcare and Aged Care
Healthcare remains one of Australia’s most significant areas of workforce pressure. JSA’s shortage data continues to identify health professionals among undersupplied occupations, while health occupations feature prominently among those experiencing persistent shortages. An ageing population and growing demand for health and care services add to the challenge.
2. Construction and Skilled Trades
Construction is another major area of persistent shortage. JSA found that Technicians and Trades Workers accounted for 51% of occupations that remained in shortage from 2021 through 2025. Construction, engineering and automotive trades were particularly represented. Electricians, plumbers, structural steel and welding trades are among the types of occupations affected.
3. Education and Early Childhood
Education is also facing workforce pressure, particularly in areas requiring specialised qualifications. JSA’s research identifies education occupations among those affected by long training gaps, while early childhood teachers are cited as an example where demand is outpacing the supply of qualified workers.
4. Engineering and Clean Energy
Engineering shortages have also persisted in parts of the Australian economy. At the same time, Australia’s construction and clean energy transition is creating demand for specialised technical and trade skills. JSA identifies occupations supporting construction and clean energy generation among those experiencing persistent shortages.
5. Care, Hospitality and Food Trades
Some shortages are linked less to lengthy qualification pathways and more to attracting and retaining workers. Aged and disabled carers, personal care workers, cooks, bakers and pastrycooks are among the occupations identified by JSA in its analysis of retention-related shortages.
What Does This Mean for Australian Businesses & How PGS can Help
For employers, a skills shortage can mean longer recruitment periods, difficulty filling specialised roles and challenges in maintaining workforce capacity. The solution is not necessarily international recruitment alone. Training, apprenticeships, better workforce participation, retention strategies and improved job matching all have an important role to play. However, where local supply cannot meet demand, skilled migration can help businesses access qualified workers from overseas and complement Australia’s domestic workforce.
For businesses that have already explored local recruitment but continue to face critical skill gaps, international recruitment can become part of a broader workforce strategy. Perdaman Global Services (PGS) works with Australian employers and skilled professionals across international recruitment and migration. Its role can include helping employers identify suitable global talent and navigate the recruitment and migration requirements involved in bringing skilled workers to Australia. For businesses facing a persistent shortage, the objective is not simply to fill a vacancy. It is to find the skills needed to keep the workforce productive and support long-term growth.
Conclusion
Australia’s skills shortage is not one problem with one solution. The latest data shows that overall shortage pressures have eased, but many occupations continue to face persistent challenges because of training gaps, skills mismatches, retention difficulties and regional workforce constraints. Healthcare, construction and trades, education, engineering, care and selected food and hospitality occupations remain important areas of concern. As Australia’s workforce needs continue to evolve, combining domestic training and participation with targeted skilled migration can help ensure businesses have access to the people and skills they need.
REFERENCES
- Jobs and Skills Australia — 2025 Occupation Shortage List – Key Findings Report [Primary source for the 29% shortage figure, persistent shortages, occupation groups and industry-level findings]
- Jobs and Skills Australia — Occupation Shortage Drivers Report 2025 [Used for the analysis of training gaps, suitability gaps and retention gaps]
- Jobs and Skills Australia — Occupation Shortage data and methodology [Provides the official definition of an occupation in shortage and access to the Occupation Shortage List and supporting datasets]
- Jobs and Skills Australia — Occupation Shortage Report – March 2026 [Used for the latest recruitment and vacancy-fill information, including the 68.2% national fill rate and 55.5% fill rate for Skill Level 3 occupations]
- Jobs and Skills Australia — Hiring difficulties deepen in regional Australia [Used for the latest regional versus metropolitan recruitment context]
