Skills gaps remain despite drop in roles with shortages

New government report shows fewer roles are in shortage of talent

Skills gaps remain despite drop in roles with shortages

Critical skills gaps remain in several of Australia's key areas despite an easing in talent shortages across the country, according to a new report from Jobs and Skills Australia (JSA).

The JSA's 2025 Occupation Shortage List showed that just 29% of occupations in the country are in shortage of talent, down from 33% in 2024.

"The improvement reflects more qualified applicants, higher vacancy fill rates, lower recruitment difficulty rates and softer demand," the JSA said on its website.

 

The report, which examined 1,022 occupations, found that 69 roles (7%) are no longer reporting shortages this year compared to last year.

However, 264 occupations (26%) are still in shortage, while 29 positions (3%) have newly emerged as areas with talent gaps since last year.

Nearly half of trade roles and two in five professional occupations are still in shortage, according to the JSA. These gaps have been reported in health, education, and construction.

"These gaps are weighing on industries that are also experiencing below-average productivity growth, underscoring the importance of workforce solutions for the wider economy," the JSA said.

 

Role of diversity

Meanwhile, the JSA also pointed out the role of diversity in filling Australia's workforce gaps.

Occupations with gender balance or greater inclusion of women, older workers, First Nations people, and people with disability are less likely to face shortages, according to the agency.

"In contrast, male-dominated roles, especially in the trades, remain persistently difficult to fill," it added.

The findings come despite easing trends in Australia's labour market.

According to the report, the monthly online job vacancies have been trending down, dropping by 6.7% from June 2024 to June 2025.

Recruitment difficulty rate also declined from 55% in June 2024 to 44% in June 2025.

Fill rates, from the government's Survey of Employers who have Recently Advertised, also went up to 70.0% in June 2025 from 68.7% in June 2024.

"This suggests that – consistent with the last two years – demand for skilled labour has eased and employers' ability to fill vacancies have improved," the report said.

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