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Australia's labour market is facing significant recruitment challenges, with a decline in the likelihood of filling vacancies and a shortage of skilled workers.

Technicians and Trades Workers occupations are among the most affected, with persistent skills shortages over time. Regional areas are experiencing more acute recruitment challenges than capital cities, with a

higher concentration of job vacancies in engineering and medical professions. The vacancy rates for Registered Nurses and Motor Mechanics are also high in many regional areas.

To address the skills shortage, Jobs and Skills Australia has conducted a preliminary analysis of the underlying drivers of skills shortage for the top 20 occupations in demand.

The study found that seven occupations have a shortage primarily driven by a lack of people with essential technical skills. Employers also consider non-technical qualities important in some cases,

and willingness to apply for vacancies under current conditions is also a factor. The domestic skills system plays a critical role in addressing these shortages, and it is essential to provide the right training to meet the demand for skilled workers.

Discover the Top 20 Occupations in Demand Across Australia

No.	Occupation	IVI job ads*
1	Registered Nurses	8,377
2	Software and Applications Programmers	6,269
3	Aged and Disabled Carers	4,642
4	Child Carers	4,277
5	Construction Managers	4,230
6	Motor Mechanics	3,924
7	Retail Managers	3,777
8	Chefs	3,725
9	Generalist Medical Practitioners	3,352
10	Metal Fitters and Machinists	3,137
11	ICT Business and Systems Analysts	3,053
12	Civil Engineering Professionals	2,871
13	Electricians	2,839
14	Early Childhood (Pre-primary School) Teachers	2,493
15	Contract, Program and Project Administrators	2,392
16	Advertising and Marketing Professionals	2,265
17	Physiotherapists	1,262
18	Gardeners	1,015
19	Mining Engineers	957
20	Database and Systems Administrators, and ICT Security Specialists	942

Notes: IVI data are October to December 2022 monthly average

Source: National Skills Commission, Skills Priority List, 2022; National Skills Commission, Employment outlook Industry and occupation trends over the five years to November 2026, 2022; JSA, Internet Vacancy Index, December 2022

In conclusion, the current labour market situation in Australia poses significant challenges for both employers and job seekers. The shortage of skilled workers and the decline in filling vacancies require immediate action.

Jobs and Skills Australia's analysis highlights the importance of addressing the skills gap and the domestic skills system's crucial role in this regard.

Employers must adopt strategies to attract and retain skilled workers, and job seekers need to upskill to meet the changing demands of the labour market.

Find Quarterly Australia's Labour Market and much more here:

Labour Market Update | Jobs and Skills Australia

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