Key Takeaways:
- Jobs and Skills Australia’s Occupation Shortage List identifies occupations in shortage nationally and across states and territories.
- The Occupation Shortage List replaces the former Skills Priority List as Australia’s current annual shortage assessment.
- Persistent shortages remain strongest in Technicians and Trades Workers and Professional occupations, especially in trades, health, education and engineering.
- The Australian occupation shortage list shows that shortages can stem from training gaps, suitability issues, retention challenges and mixed workforce pressures.
- RTOs can use shortage data to review training priorities, align courses with workforce demand and strengthen industry engagement.
Jobs and Skills Australia’s 2025 Occupation Shortage List gives RTOs a current view of where workforce shortages are occurring and why they remain difficult to resolve. With shortages affecting major sectors such as health, care, education, construction and trades, the report offers practical insight into the labour market pressures shaping training demand across Australia.
For RTOs, the Australian occupation shortage list can support more informed planning around course delivery, qualification demand and industry engagement. This blog explores how the list works, what the 2025 findings reveal about persistent shortages and shortage drivers, and how training providers can use these insights to align programs with current and emerging workforce needs.
Understanding the Occupation Shortage List
The Occupation Shortage List is Jobs and Skills Australia’s annual assessment of labour market shortages across Australia. It identifies occupations in shortage nationally and across states and territories, using the Australian and New Zealand Standard Classification of Occupations (ANZSCO) to assess workforce demand at a detailed occupational level.
The Australian occupation shortage list draws on several evidence sources and assessment methods to determine whether an occupation is in shortage, including:
- Labour market data and statistical analysis
- Employer research on recruitment experiences
- Stakeholder engagement and industry consultation
- Analysis of shortage drivers, such as long or short training gaps, suitability gaps, retention challenges and uncertain or mixed factors
The Occupation Shortage List replaces the former Skills Priority List, which was previously used to assess occupation shortages and skills needs. For RTOs, the occupation shortage list in Australia provides useful evidence for understanding training demand, planning course offerings and aligning delivery with current workforce needs.
The State of the Labour Market in 2025
Australia’s labour market remains active in 2025, but workforce pressures are more complex than headline employment figures suggest. Jobs and Skills Australia reported 14.7 million employed persons in May 2025, while around 897,000 workers were underemployed. This indicates that many Australians are participating in work, but some still need more hours or better-matched employment opportunities.
The 2025 labour market is shaped by several connected pressures:
- Persistent occupation shortages across key industries
- Uneven workforce participation across different cohorts and regions
- Underemployment despite strong overall employment
- Training pipelines that may not be keeping pace with demand
- Retention challenges in sectors where employers frequently need to replace staff
Taken together, these conditions show a labour market where employment remains strong, but skills alignment continues to be uneven. Underemployment, persistent shortages and workforce retention issues point to ongoing pressure in how workers are matched to available roles across industries and regions.
Key Findings from the 2025 Report
The 2025 Occupation Shortage List shows that Australia’s workforce shortages are not limited to temporary recruitment difficulty. Many shortages now reflect deeper structural issues, including training pipeline constraints, skills mismatch, retention challenges and demand growing faster than the supply of suitable workers.
Persistent Labour Market Shortages
Jobs and Skills Australia defines persistent shortages as occupations that have been in shortage for five or more years. In the 2025 analysis, 139 occupations were in persistent shortage from 2021 to 2025, showing that many workforce gaps have remained unresolved across several years.
These persistent shortages were concentrated in:
| Occupation Group | Occupations in Persistent Shortage |
| Technicians and Trades Workers | 71 occupations, 51% |
| Professionals | 52 occupations, 37% |
| Community and Personal Service Workers | 7 occupations, 5% |
| Machinery Operators and Drivers | 7 occupations, 5% |
| Managers | 2 occupations, 1% |
This indicates ongoing shortage pressure in areas such as construction, engineering, automotive trades, health, early childhood education, science and other skilled professional fields. For RTOs, this makes the occupation shortage list in Australia a useful reference for identifying where training demand may remain strong over the longer term.
More Complex Shortage Drivers
The Australian occupation shortage list also provides more context on why shortages occur. Rather than treating every shortage the same way, Jobs and Skills Australia identifies different shortage drivers that can point to different workforce and training issues:
- Long training gaps, where occupations require Certificate III or higher qualifications and there are too few qualified applicants.
- Short training gaps, where there are too few applicants, but the required training pathway is shorter.
- Suitability gaps, where qualified applicants exist but may not have the employability skills, experience or job readiness employers expect.
- Retention gaps, where employers struggle to keep workers due to factors such as job quality, pay, workplace culture or working conditions.
- Uncertain or mixed drivers, where shortages may be caused by several overlapping factors rather than one clear issue.
These drivers show that occupation shortages are not always solved by increasing enrolments alone. Some require stronger training pathways, while others need better work placement opportunities, employability skills development, employer engagement or retention strategies.
Large Employing Occupations Still Face Shortage Pressure
The data shows that shortages are not limited to niche or highly specialised roles. Several large employing occupations remain affected, meaning workforce shortages can have broader impacts across essential services, infrastructure, business operations and community support.
Key examples include:
- Aged and Disabled Carers: One of the largest employing occupations affected by shortage pressures, with demand linked to population ageing, disability support needs and the growth of the care economy.
- Registered Nurses: A major health workforce occupation where demand remains high and training, placement and retention pressures continue to affect supply.
- Truck Drivers: A large employing occupation affected by workforce demand across transport, logistics and supply chains.
- Primary and Secondary School Teachers: Key education roles where shortages can affect access to learning and broader community outcomes.
- Electricians, Carpenters and Plumbers: Trade occupations with strong links to housing, infrastructure and clean energy projects.
These shortages matter because large employing occupations influence many parts of the economy. When employers struggle to fill these roles, the impact can extend beyond individual businesses and affect service delivery, project timelines and workforce productivity.
Skill Shortages in Major Occupation Groups
Professional Occupations
Professionals remain a major source of persistent workforce shortages. In the 2025 analysis, Jobs and Skills Australia found that 52 of the 139 occupations in persistent shortage were in the Professionals group, with pressure concentrated in health, education, engineering and science-related fields.
- Persistent Shortages: Professionals accounted for 37% of persistent shortages, showing that many workforce gaps in this group have continued across several years.
- Health and Education Demand: Shortages remain visible in roles such as registered nurses, general practitioners, psychologists, physiotherapists, pharmacists and teachers, where long qualification pathways, registration and workplace readiness can slow workforce supply.
- Suitability Gaps: Some professional shortages, particularly in engineering, are linked to suitability gaps where qualified applicants may still need stronger experience, employability skills or job readiness.
Technicians and Trades Workers
Technicians and Trades Workers represent the largest share of persistent shortages in the 2025 Occupation Shortage List. Jobs and Skills Australia found that 71 of the 139 occupations in persistent shortage were in this group, reflecting ongoing pressure across construction, engineering, automotive and related trades.
- Largest Shortage Group: Technicians and Trades Workers accounted for 51% of persistent shortages, making this the most affected major occupation group in the 2025 analysis.
- Training Pipeline Constraints: Many trade roles rely on apprenticeships, supervised practice and VET pathways, so supply cannot respond quickly when demand rises.
- Infrastructure and Clean Energy Demand: Occupations such as electricians, carpenters, plumbers, motor mechanics and metal fitters remain important to housing, infrastructure and clean energy projects, making trade training capacity a key issue for RTOs.
Community and Personal Service Workers
Community and Personal Service Workers continue to face shortages across care, health support and early childhood-related roles. While this group accounts for a smaller share of persistent shortages, the affected occupations are closely tied to essential services.
- Care Workforce Demand: Demand remains strong in aged care, disability support, early childhood education and health support, including roles such as aged and disabled carers, child carers, nursing support workers and personal care workers.
- Retention Challenges: Shortages in this group can reflect retention issues as well as training supply, with pay, working conditions, workplace culture and job demands affecting whether workers stay.
- Workforce Planning Needs: Addressing these shortages may require stronger training pathways, practical learner preparation and closer attention to employer expectations in care-sector roles.
Where We Are in 2026
While the 2025 Occupation Shortage List gives RTOs the annual view of occupations in shortage, the March 2026 Occupation Shortage Report provides a more recent snapshot of employer recruitment conditions. The report draws on the Survey of Employers who have Recently Advertised, which looks at how employers are filling advertised vacancies and whether applicants are qualified and suitable for the roles available.
The March 2026 quarterly report shows that recruitment pressure is still a live issue, but the story is more nuanced than ‘there are not enough workers.’ For RTOs, the key takeaways are:
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Employers are finding vacancies harder to fill.
The national vacancy fill rate fell compared with the previous quarter and the same time last year, showing that advertised roles are not always translating into successful hires.
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Qualified applicants remain a concern.
Employers still need candidates who meet qualification, licensing or technical requirements, especially in industries that rely on formal training pathways.
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Suitability still matters.
Suitable applicants increased slightly, but employers still need people who can meet practical workplace expectations, not just minimum application requirements.
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Regional recruitment remains tougher.
Regional areas recorded lower fill rates and fewer total, qualified and suitable applicants than metropolitan areas, making local workforce demand an important consideration.
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VET-connected roles need close attention.
Skill Level 3 occupations recorded the lowest fill rate across all skill levels, while groups such as Technicians and Trades Workers, Professionals, Machinery Operators and Drivers, and Labourers continued to show recruitment pressure.
What the 2026 Data Means for RTOs
The latest occupation shortage data gives RTOs a practical prompt to review whether course planning, training delivery and employer engagement are aligned with workforce needs in 2026.
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Review course priorities.
Use the 2025 Occupation Shortage List alongside the March 2026 quarterly report to identify where recruitment pressure is continuing and where current or future training demand may be strongest.
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Look beyond national trends.
Regional results show why RTOs should consider local employer demand, trainer availability, learner interest, placement access and delivery feasibility before changing course priorities.
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Ask employers sharper questions.
Use shortage data to guide conversations about qualification requirements, practical skill gaps, workplace readiness, placement barriers and the capabilities applicants are missing.
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Strengthen learner readiness.
If employers are struggling to find qualified and suitable applicants, practical training, assessment preparation, foundation skills support, placement readiness and employability skills become even more important.
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Balance opportunity with capacity.
Shortage data can point to demand, but RTOs still need to consider compliance obligations, trainer and assessor availability, industry currency, resource quality and genuine learner demand.
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Treat 2026 data as a planning signal.
The 2026 Q1 report suggests workforce pressure remains uneven across industries and regions, so RTOs should review shortage data alongside employer feedback and learner outcomes.
Frequently Asked Questions
What is the difference between the Occupation Shortage List and general job vacancy data?
The Occupation Shortage List looks beyond job ad numbers to assess whether employers can find suitable workers for specific occupations. General vacancy data shows demand, while the OSL adds context around applicant suitability, training pathways, employer feedback and location-based shortages.
How often is the Australian occupation shortage list updated?
Jobs and Skills Australia updates the Occupation Shortage List annually, with quarterly updates. RTOs should use it as a strong evidence base, alongside local employer consultation, enrolment trends, funding updates and state or territory workforce priorities.
Why do some occupations stay in shortage for several years?
Persistent shortages usually reflect structural issues, not short-term recruitment difficulty. Common drivers include long qualification pathways, limited placement capacity, low retention, changing industry demand, regional access issues and employer expectations that do not match the available workforce.
Does an occupation shortage always mean an RTO should add that course to scope?
Not necessarily. A shortage can suggest demand, but RTOs should also consider trainer availability, placement access, resource requirements, local employer need, funding options and compliance obligations before adding a qualification or unit to scope.
How can RTOs use occupation shortage data for industry engagement?
RTOs can use occupation shortage data to guide more targeted employer conversations. Instead of asking broad questions about skills needs, providers can discuss specific shortage occupations, practical skill gaps, placement expectations, learner readiness and current training pathways.
Turning Shortage Insights into Smarter Training Decisions
The 2025 Occupation Shortage List shows that Australia’s workforce challenges are shaped by more than job vacancies alone. Persistent shortages, training gaps, suitability issues and retention pressures all influence how industries access the skilled workers they need.
For RTOs, these insights can support more targeted planning across course delivery, resource selection, employer engagement and future training priorities. By reviewing shortage data alongside industry consultation and learner demand, providers can make better-informed decisions about where their training programs can support Australia’s current and emerging workforce needs.
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