Warning: Skills Shortages Ahead

Australia’s skills shortages are no longer a future concern—they’re here. Across sectors like construction, healthcare, engineering, education, and digital technologies, employers are struggling to find workers with the right skills. For job seekers and career changers, this presents both a challenge and an opportunity.

In 2025, the ability to adapt and upskill is more important than ever. As businesses report growing difficulties in recruitment, individuals who pursue vocational education, reskilling or apprenticeships will be best positioned to fill these gaps—and future-proof their careers.

Which Industries Are Facing the Greatest Shortages?

According to the Jobs and Skills Australia Priority List, these sectors are experiencing critical shortages:

• Healthcare and aged care (nurses, disability support workers, aged care workers)
• Skilled trades (electricians, plumbers, carpenters, mechanics)
• Engineering (civil, mechanical, electrical)
• Education (early childhood educators, secondary school teachers)
• Technology (cyber security specialists, software developers, data analysts)

Shortages in these fields are often driven by long training lead times, ageing workforces, migration disruptions, and rapid demand growth.

What Employers Are Reporting

Recent research from the Australian Industry Group (Ai Group) shows that:

• Over 70% of businesses are currently experiencing skills shortages
• More than half report difficulty recruiting workers with essential qualifications
• Apprentice completions and trade training enrolments have not kept pace with industry needs

The most in-demand roles include electricians, metal fabricators, civil engineers, aged care workers, and IT specialists. In many cases, employers are turning to international recruitment or outsourcing just to keep up with operational demands.

Why It’s So Hard to Fill These Roles

In most cases, the issue isn’t that people aren’t willing to work—it’s that they lack the specific skills needed. Contributing factors include:

• Specialised training gaps: Long qualification times for roles like engineering, healthcare, and teaching
• Limited local training availability: Especially in regional or remote areas
• Low awareness: Many school leavers or career changers are unaware of pathways into critical occupations
• Wage competition: Skilled workers being poached by better-paying industries

In service sectors, such as IT and business, employers also report a shortage of workers with soft skills—like problem-solving, communication, and adaptability—that are essential in team-based or client-facing roles.

How Employers Are Responding

To combat shortages, employers are increasingly:

• Upskilling existing staff through in-house training or external courses
• Partnering with education providers to develop job-ready programs
• Offering apprenticeships and traineeships to build future talent pipelines
• Redesigning jobs to better match available skills in the labour market

Businesses that proactively invest in talent development are more likely to retain skilled staff and maintain productivity through challenging times.

How You Can Take Advantage of These Opportunities

If you’re entering the workforce, changing careers, or seeking advancement, this is a great time to gain in-demand skills. Start by exploring nationally recognised training options in areas with strong job growth:

• Building and Construction
• Aged and Disability Care
• Cyber Security and IT
• Early Childhood Education
• Engineering and Technical Trades

Many of these courses are government-subsidised or fee-free under national skills initiatives.

Looking Ahead: Education Is the Long-Term Solution

In the words of Ai Group Chief Executive Innes Willox: “Skills shortages are not a short-term issue. We need long-term workforce planning and collaboration between industry and education providers.”

This means a focus on practical, job-aligned training, and support for learners at all ages and career stages. Whether it’s through VET qualifications, short online courses, or formal apprenticeships, education is Australia’s best tool for building a stronger, more resilient workforce.