Australia’s occupation shortages fall to 27% in 2026, JSA data shows

The share of occupations facing skills shortages in Australia has fallen to 27% in 2026, down from 36% in 2023, as labour market pressures ease across several sectors, according to the latest Occupation Shortage List released by Jobs and Skills Australia (JSA).

Of the 279 occupations assessed, the proportion experiencing shortages declined by nine percentage points over the three-year period. 

The findings highlight easing recruitment pressures across the labour market, although shortages persist in several occupational groups.

Health, engineering and ICT shortages ease

Around half of the occupations no longer in shortage in 2026 were in health, engineering, science and information and communications technology (ICT), with the remainder spread across other occupational groups.

Skill Level 3 occupations continued to record the highest prevalence of shortages. However, the share of these roles in shortage declined from 49% in 2023 to 42% in 2026.

These occupations include many trade and technician roles that typically require a Certificate III or IV qualification, with vocational education and training (VET), including apprenticeships, serving as a key pathway into employment.

Government points to skills and training investments

The Australian Government attributed the decline to investments in skills development and workforce participation, including the Free TAFE programme and the Key Apprenticeship Program.

Free TAFE aims to reduce financial barriers to vocational qualifications in critical industries, while the Key Apprenticeship Program provides incentive payments to apprentices and employers in housing construction and clean energy trades.

Minister for Skills and Training Andrew Giles said, “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.”

He added, “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.”

Minister for Employment and Workplace Relations Amanda Rishworth said the continued decline reflected the value of expanding opportunities for workforce participation.

“The ongoing reduction in shortages demonstrates the value of investing in more opportunities for people to participate in the workforce,” Rishworth said.

“Fewer occupations in shortage means a more resilient economy, stronger businesses and better outcomes for workers and communities across Australia.”

Persistent workforce gaps remain

Despite the overall decline, JSA's 2026 Occupation Shortage Drivers analysis examines the factors contributing to ongoing shortages, including gaps in training, candidate suitability and employee retention.

Acting Commissioner of Jobs and Skills Australia Trevor Gauld said the findings could help identify areas requiring further intervention.

“These results highlight where labour market pressures are easing and where targeted action is still needed to address persistent workforce shortages,” Gauld said.

“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.”

The updated Occupation Shortage List and accompanying analysis provide employers, policymakers and training providers with evidence to guide workforce planning and skills development across Australia.