Key Takeaways:
- Regional vacancy fill rates continue to sit below metro areas, reinforcing the nationwide need for targeted workforce planning.
- Structural barriers like smaller labour pools and limited training access intensify the shortages identified on the occupation shortage list in regional Australia.
- Trades, healthcare, agriculture, and education remain key occupations in demand across Australia, with shortages affecting infrastructure, services, and supply chains.
- The regional Mismatch Index shows reveals an oversupply in clerical roles but acute demand for technical and care-based occupations, highlighting the need for VET solutions.
- Vocational education and training providers play a critical role in strengthening regional workforces by contextualising training programs and partnering with local employers.
Regional Australia continues to bear the brunt of national skills shortages. According to Jobs and Skills Australia’s Occupation Shortage Report for June 2025, vacancy fill rates remain lower in regional areas compared to metropolitan centres. Employers outside the cities face smaller applicant pools, fewer qualified candidates, and tougher competition for talent—all of which place additional pressure on regional economies and communities.
In this blog, we’ll break down the regional findings of the 2025 Occupation Shortage List, explore which industries are most affected, and examine why shortages persist in trades, healthcare, and agriculture. We’ll also look at how these trends shape workforce planning and outline the role of vocational education and training providers in strengthening regional workforces.
Vacancy Fill Rates: A Persistent Regional Gap
Nationally, the vacancy fill rate climbed to 70.6% in June 2025, but regional employers trailed behind at just 65.8%. Metropolitan employers fared better, filling 72.2% of advertised roles. While the gap narrowed marginally compared to the previous quarter, it still highlights the persistent structural issue.
| Regional Areas | Metro Areas | |
| Applicants per Vacancy | 16.3 | 32.7 |
| Qualified Applicants per Vacancy | 5.4 | 11.2 |
| Suitable Applicants per Vacancy | 3.0 | 4.9 |
These figure highlight why regional employers often face prolonged delays in recruitment delay, higher staff turnover, and greater reliance on underqualified workers. For RTOs, this data demonstrates why strategic, targeted training pathways are essential to reduce these gaps and strengthen regional workforces.
Why Regional Employers Struggle More
Shortages on the Occupation Shortage List are magnified in regional settings due to unique structural challenges not experienced in metropolitan areas. The biggest barriers include:
- Smaller Labour Pools: With fewer residents, employers must compete for limited candidates.
- Access to Training: Many learners face travel costs or lack of local delivery options, making vocational education and training less accessible.
- Industry Dependence: Regional economies rely heavily on trades, agriculture, and healthcare, all of which are occupations in demand in Australia.
- Retention Problems: Staff often relocate back to metro areas for career progression, leaving employers to re-advertise roles.
For RTOs, these factors confirm why regional shortages cannot be resolved merely by increasing enrolments. Instead, long-term workforce planning is needed to grow, retain, and support talent pipelines within communities.
Occupations in Demand Across the Regions
Breaking down the Occupation Shortage List by major group clarifies which regional employers face the greatest workforce strain.
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Technicians and Trades Workers
National Fill Rate: 57.0%
In regional towns, shortages are particularly evident in construction, electrical, and mechanical roles, leading to project delays, infrastructure bottlenecks, and increased operational costs. These jobs remain a top occupation in demand in Australia, and trade training should be a priority for regional RTOs. -
Community and Personal Service Workers
National Fill Rate: 68.6%
Regional demand is amplified by ageing populations and limited healthcare infrastructure, and shortages are most severe in aged care, disability services, and childcare. For training providers, expanding qualifications in these areas directly supports both employment outcomes and community wellbeing. -
Labourers in Agriculture and Resources
National Fill Rate: 65.3%
Regional shortages significantly affect food production, supply chains, and exports. Employers often report seasonal recruitment crises, with few suitable applicants available. -
Professionals in Health and Education
National Fill Rate: 71.3%
There are persistent shortages in teaching, nursing, and allied health roles, with regional hospitals and schools consistently reporting difficulty attracting qualified professionals.
Together, these groups show that the occupation shortage list isn’t just about numbers but the sustainability of regional industries that underpin the national economy.
The Workforce Mismatch in Regional Context
Jobs and Skills Australia’s Mismatch Index measures how well applicant supply matches employer demand. While the national index dropped to 30% in 2024–25, mismatches remain pronounced in regional areas.
Examples of mismatch include:
- Excess applicants in clerical and administrative roles.
- Acute shortages in trades, healthcare, and community services.
- Lower transferability of skills in regional markets, where smaller pools amplify mismatches.
For training providers, this underscores that regional VET delivery must prioritise qualifications aligned with the Occupation Shortage List, rather than generic programs. Data-led workforce planning ensures RTOs channel resources into areas with the highest demand and absorption potential.
Training as a Regional Growth Strategy
Labour shortages are not only an employment issue; they are an economic one. When vacancies remain unfilled in healthcare, trades, or agriculture, regional growth slows, services decline, and investment opportunities are lost.
Training providers can act as key drivers of regional resilience by:
- Offering blended and block delivery to reduce travel barriers for learners
- Partnering with employers for integrated workplace training
- Creating career progression pathways to improve retention in regional jobs
- Contextualising programs for local industries (e.g., agricultural business skills, aged care specialisations)
When vocational education and training is designed around these strategies, it becomes a powerful tool for improving employability and strenghtening community development.
Looking Ahead: Why the 2025 Data Matters
Demographic and economic trends suggest that shortages in regional Australia are likely to deepen without intervention. Future drivers of demand include:
- Aging Demographic: More demand for aged care and disability support
- Infrastructure Projects: increasing need for construction and trades
- Agricultural Cycles: Ongoing seasonal shortages for labourers
- Health and Education Access: Long-term reliance on professionals willing to work outside cities
For RTOs, this means that aligning qualifications with the Occupation Shortage List is essential to ensure students train for high-demand, future-proof careers.
Frequently Asked Questions
Why do regional areas show lower vacancy fill rates than cities?
Regional employers face smaller talent pools, higher relocation rates, and reduced access to localised training, which limits the number of qualified and suitable applicants compared to metropolitan centres.
How can RTOs use the occupation shortage list to shape regional programs?
By aligning course offerings with the occupations most in demand in Australia—such as trades, healthcare, and agriculture—RTOs can deliver qualifications that match real workforce needs.
What role does workforce planning play in regional labour markets?
Workforce planning ensures training is targeted to industries critical to regional economies, helping reduce recruitment delays, improve retention, and build long-term resilience.
How can vocational education and training providers reduce barriers for regional learners?
Strategies include offering blended delivery, using block training models to minimise travel, embedding workplace training, and creating progression pathways that encourage learners to stay local.
What long-term factors will drive demand for regional occupations?
An ageing population, major infrastructure projects, seasonal agricultural cycles, and limited healthcare access will continue to drive demand across key industries on the occupation shortage list.
Conclusion: Strengthening Regional Australia Through Training
The 2025 Occupation Shortage Report reinforces what regional employers already know: filling vacancies is consistently more difficult outside metropolitan centres. But it also makes clear that training providers have an opportunity to be part of the solution.
By tailoring programs to the occupation shortage list, focusing delivery on the industries most critical to regional economies, and embedding strategies that reduce barriers for learners, RTOs directly strengthen local and regional workforces. In doing so, they not only boost graduate employability but also support the long-term resilience of Australia’s regional communities.
