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Overview
Australia's Jobs and Skills Report 2025, released by Jobs and Skills Australia (JSA), outlines how the nation's workforce is evolving - and what that means for employers.
For organisations with a significant portion of their workforce on skilled visas, the report's findings are a roadmap for navigating change, closing capability gaps, and strengthening workforce resilience.
Skills Alignment Is the New Productivity Driver
JSA's key message is clear: productivity depends on how well
skills match job needs.
Persistent mismatches between training outcomes and employer
demand are holding back national productivity. Businesses that take
a proactive approach to workforce planning and training alignment
will have the edge.
"Making stronger connections between the skills that workers have and the skills required for jobs is central to economic growth."
Jobs and Skills Report 2025, Executive Summary
Structural Skill Shortages Persist
The report confirms that 139 occupations have been in ongoing shortage since 2021 - more than half in Technicians and Trades roles, and over one-third among Professionals in health, education, and engineering.
This reinforces the importance of workforce planning that integrates both training pipelines and migration pathways.
Top shortage areas for 2025 include:
- Health and aged care workers
- Engineers and technicians
- Educators and childcare professionals
- Construction and trades roles
- ICT and cybersecurity specialists
Migration Remains Central to Workforce Balance
Migration continues to play a vital role in meeting immediate workforce needs, particularly where training pathways are long or highly specialised.
The report highlights the need for closer alignment between migration policy and real-time workforce data, reflected in the ongoing evolution of the Skills in Demand (subclass 482) visa.
Employer takeaway:
Strategically use migration to fill high-demand roles - but plan
concurrently for domestic upskilling to ensure long-term
stability.
Digital, Data and AI Skills Are Now Core Business
JSA's recommendations heavily emphasise digital and AI
capability uplift across all sectors.
Employers should prioritise:
- Digital literacy across non-tech roles
- Data analysis and automation training
- AI governance and ethics awareness
This shift isn't limited to tech firms - it's relevant to every business operating in an increasingly digital economy.
Inclusion Equals Resilience
JSA's data shows that organisations with diverse and inclusive workforces experience fewer skill shortages and higher innovation.
Groups driving resilience include:
- First Nations workers
- People with disability
- Women in non-traditional roles
- Mature-aged and return-to-work employees
Employer takeaway:
Inclusive recruitment isn't just good for reputation - it's a proven productivity strategy.
Regional and Essential Services Under Pressure
Workforce gaps remain sharpest in regional Australia and essential services such as healthcare, education, and childcare.
Nearly 1 in 10 roles in these sectors remain vacant, often due to location challenges and retention pressures.
Employers can mitigate these issues through:
- Flexible work models or hybrid relocation
- Sponsorship programs for regional visas
- Enhanced employee support and settlement programs
Education and Training Drive Future Readiness
More than 90% of new jobs over the next decade will require post-school qualifications:
- 50%+ needing a university degree
- 40% requiring VET or apprenticeship pathways
Employers that invest in learning and development, or partner with registered training organisations (RTOs), will be better positioned to attract and retain talent.
Employer Action Plan
Focus Area |
Employer Action |
|
Workforce Planning |
Audit your current and future skill requirements using JSA's national data. |
|
Retention |
Improve job quality, progression, and culture to retain both local and sponsored workers. |
|
Digital Upskilling |
Embed digital and AI literacy programs for all employees. |
|
Migration Strategy |
Align recruitment with the updated Skills in Demand visa framework. |
|
Diversity & Inclusion |
Broaden recruitment and career pathways to underrepresented groups. |
In Summary
Australia's workforce is undergoing one of its most significant transitions in decades.
For employers - especially those managing large visa workforces - this is a strategic moment to:
- Build internal capability aligned with national skills priorities,
- Use migration as a targeted, not reactive, solution, and
- Invest in digital readiness and inclusion as key drivers of productivity.
Resilience, adaptability, and alignment - these are the new benchmarks for workforce competitiveness in 2025 and beyond.
Download the Jobs and Skills Report 2025 here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
