Occupations in shortage continue to drop
New data shows Australia’s occupations in shortage are continuing to ease, in a sign that the Albanese Government’s targeted investments in skills and workforce participation are strengthening the nation’s capability to meet current and future labour market needs. The Occupation Shortage List released by Jobs and Skills Australia (JSA) today shows of the 279 occupations assessed, there’s been a nine per cent decrease in skills shortages, down 36 per cent in 2023 to 27 per cent in 2026.
Approximately half of the occupations that are no longer in shortage in 2026 were in health, engineering, science and ICT roles, with the rest spread across the other groups. Shortages were most prevalent among Skill Level 3 occupations, however the percentage of those occupations in shortage has consistently declined over the past three years from 49 per cent in 2023 to 42 per cent in 2026.
Many trade and technician roles are Skill Level 3 occupations, which typically require a Certificate III or IV and utilise Vocational Education and Training (VET) as the primary pathway to the labour market, including through apprenticeships. These results emphasise the importance of the Albanese Government’s continued and targeted investments in ensuring Australians can get the skills they want, to do the jobs we need.
Free TAFE, which removes financial barriers to Australians accessing VET qualifications in critical industries, and the Key Apprenticeship Program, offering incentive payments to new apprentices and their employers in housing construction and clean energy trades, are among the measures being delivered by the Government. JSA’s release includes the 2026 Occupation Shortage Drivers analysis, exploring the factors contributing to shortages, including training, suitability and retention gaps.
An updated methodology report is also available, explaining how the list is developed and how data and stakeholder evidence inform the assessment process. The 2026 Occupation Shortage List and Drivers provide an updated picture of occupation shortages across Australia and can be found on the JSA website www.jobsandskills.gov.au/data/occupation-shortage Quotes attributable to Minister for Skills and Training, Andrew Giles: “When Labor came to office, we faced up to the result of a decade of Coalition government – skills shortages at a 50-year high – reflecting a failure to invest in the training opportunities Australians wanted and needed.
“Labor is bringing those skills shortages down. Occupations in shortage have dropped from 36 per cent in 2023 down to 27 per cent this year. That’s a nine per cent drop in three years.
“This is why our investments in Free TAFE and the Key Apprenticeship Program are so important – backing Australians, and ensuring every community has the skilled workers they need.” Quotes attributable to Minister for Employment and Workplace Relations, Amanda Rishworth: “The ongoing reduction in shortages demonstrates the value of investing in more opportunities for people to participate in the workforce.
“Fewer occupations in shortage means a more resilient economy, stronger businesses and better outcomes for workers and communities across Australia. “The continued decline in occupational shortages is welcome news for Australia. It shows that more people are finding pathways into jobs, while businesses are gaining better access to the skilled workforce they need to grow and succeed.” Quotes attributable to Acting Commissioner of Jobs and Skills Australia, Trevor Gauld: “These results highlight where labour market pressures are easing and where targeted action is still needed to address persistent workforce shortages.
“By providing timely evidence on occupation shortages, Jobs and Skills Australia is helping governments, employers and training providers make informed decisions about Australia's workforce needs.”