Understanding Australia’s Skilled Migrant Shortages in 2025

Understanding Australia’s Skilled Migrant Shortages in 2025

Australia is grappling with widespread skilled labour shortages, a challenge highlighted by the 2023 Skills Priority List, where 36% of assessed occupations were in national shortage.

These shortages, particularly evident in trades, health care, ICT, and engineering, have persisted for years and are especially pronounced in regional areas. The Skilled Occupation List (SOL) for 2024/25 identifies critical occupations needed to fill gaps in key sectors, guiding skilled migration policies and workforce planning efforts.

Table of Contents

  1. Key Categories Impacted by Skills Shortages
  2. Persistent and Emerging Shortages
  3. The Skilled Occupation List (SOL) for 2024/25
  4. Contributing Factors to Skills Shortages
  5. Typology of Skills Shortages
  6. Opportunities for Skilled Migrants
  7. Implications for Employers and Policymakers

 

Key Categories Impacted by Skills Shortages

Technicians and Trades Workers
In 2023, half of the occupations in this category were assessed as being in shortage, including trade essential roles like electricians, carpenters, and plumbers. These positions are vital to infrastructure development and the housing sector. Shortages are most acute in regional areas, where demand outpaces the availability of skilled workers. For example, Queensland’s construction boom has driven significant demand for tradespeople, further straining supply.

Professionals
Health professionals, ICT specialists, and engineers are among the 48% of professional roles facing shortages. Registered nurses, physiotherapists, and occupational therapists are in high demand due to an ageing population and increased healthcare needs. Engineers, particularly civil and structural, are critical for infrastructure projects, while ICT roles like software developers and cybersecurity specialists are pivotal for Australia’s digital transformation.

Community and Personal Service Workers
Shortages in this category increased to 24% in 2023. Aged care and disability support roles face significant gaps due to burnout and limited career advancement opportunities. For instance, aged care worker vacancies have grown as Australia’s senior population increases, with demand far outstripping supply.

Regional Areas
Labour shortages are more severe in regional and remote areas. In the Northern Territory, 55% of employers reported location as a major barrier to filling vacancies, while 40% of employers in very remote areas noted that candidates declined offers due to the location. Western Australia faces similar challenges, with regional employers struggling to attract workers for mining, agriculture, and construction projects.

Persistent and Emerging Shortages

Persistent shortages remain a significant issue, affecting 29% of occupations assessed since 2021. For example, 67 technician and trade roles, including electricians and mechanics, and 55 professional roles, such as nurses and engineers, have faced ongoing shortages. Emerging shortages in 2023 added 66 new occupations to the list, such as taxation accountants, solicitors, and biomedical engineers. These roles often reflect shifts in economic needs and recruitment difficulties, including fewer qualified applicants.

The Skilled Occupation List (SOL) for 2024/25

The 2024/25 SOL provides a roadmap for addressing workforce gaps through skilled migration. It includes roles across various sectors, prioritising occupations that are critical to economic growth and societal needs. Migration pathways like the Subclass 189 (Skilled Independent), Subclass 190 (Skilled Nominated), and Subclass 491 (Skilled Regional Provisional) visas aim to fill these gaps efficiently.

Key roles on the SOL include:

  • Health and Community Services: Registered nurses, midwives, and aged care workers are critical to addressing growing healthcare demands.
  • Engineering and Construction: Civil engineers, quantity surveyors, and electricians are essential for infrastructure and housing projects.
  • ICT and Technology: Software engineers, ICT security specialists, and telecommunications engineers play a pivotal role in Australia’s digital economy.
  • Trades and Technicians: Carpenters, plumbers, and welders are vital for the booming construction industry.

Contributing Factors to Skills Shortages

Training and Education Gaps
Many high-demand roles require extensive training or qualifications, such as bachelor degrees or apprenticeships. For example, becoming a registered nurse takes years of study and clinical experience, creating a “longer training gap” that delays workforce entry.

Low Retention Rates
High turnover rates exacerbate shortages in roles like aged care workers and chefs. Factors include burnout, low wages, and limited career advancement opportunities. For example, the aged care sector faces a 25% annual attrition rate, making retention a critical issue.

Geographic Disparities
Regional areas are disproportionately affected due to their remoteness. Over 80% of employers in very remote areas cite location as a major barrier to recruitment, while 40% report that location was a key reason candidates declined offers.

Wage Growth Insufficiency
Despite conventional economics suggesting that wage increases can attract more workers, only 1% of employers adjusted wages in response to shortages in 2023, up from 0.4% in 2022. Wage growth remains limited, hindering the ability to resolve labour market imbalances.

Gender Imbalances
Occupations with strong gender imbalances, such as male-dominated trades and female-dominated care roles, are more likely to experience shortages. Addressing these imbalances is critical for reducing skills gaps in these sectors.

Typology of Skills Shortages

Jobs and Skills Australia identifies four types of shortages:

Longer Training Gap: Occupations requiring years of training, such as registered nurses and electricians, where workforce entry is delayed by lengthy qualification processes.
Shorter Training Gap: Roles like retail managers, where targeted short-term training could rapidly address shortages.
Suitability Gap: Occupations like civil engineers and construction managers, where qualified applicants lack essential employability skills or experience.
Retention Gap: High turnover roles, such as aged care workers and chefs, where low retention rates exacerbate shortages despite adequate training.

Opportunities for Skilled Migrants

Australia relies heavily on skilled migration to address workforce shortages. The Skilled Occupation List (SOL) offers pathways for migrants to contribute to high-demand industries. Benefits include job security, regional incentives, and opportunities in sectors with persistent demand, such as healthcare, engineering, and ICT. Migrants willing to work in regional areas can also access additional visa points and expedited processing.

Implications for Employers and Policymakers

Employers must invest in training programs, improve job conditions, and offer competitive wages to attract and retain skilled workers. Partnerships with educational institutions and government initiatives can also bridge training gaps.
Policymakers should expand training pathways, increase funding for apprenticeships, and streamline migration processes to address systemic barriers. The SOL should be updated regularly to reflect real-time labour market needs.
Education and Training Providers should focus on vocational training and apprenticeships to address skills gaps quickly, particularly in trades and regional areas.

Summary

Australia’s skilled labour shortages present both challenges and opportunities. Persistent gaps in critical roles highlight the need for a coordinated effort between employers, policymakers, and educators. Skilled migrants have a unique opportunity to contribute to the economy while securing rewarding careers. Addressing these shortages requires a multifaceted approach, including enhanced training, targeted migration policies, and improved working conditions. With strategic action, Australia can build a resilient and future-ready workforce.

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