Jobs and Skills Australia has released its 2026 Jobs and Skills Report, pathways to success. It finds that Australia’s labour market remains strong, although almost 3 in 10 occupations are still in shortage in 2025.
The report brings together evidence on jobs, skills and workforce participation. It is designed to help governments, employers, education providers and individuals make better decisions about future workforce needs.
Key findings
- Labour market remains strong: Workforce participation remains around record highs. The unemployment rate stayed at or below 4.5% from December 2021 to July 2026, representing the longest period at or below this level since the 1970s.
- Skills shortages continue: The proportion of occupations experiencing skills shortages declined from 36% in 2023 to 29% in 2025. Despite this improvement, almost three in ten occupations remained in shortage in 2025.
- Opportunities to better use existing skills: About 33% of women and 27% of men work in occupations below their skill potential. This highlights opportunities to improve skills utilisation and workforce participation.
- Growing demand for broader capabilities: References to critical thinking and problem-solving in construction trade job advertisements have more than tripled over the past decade. Employers increasingly value these capabilities alongside technical skills.
Click here: Jobs and Skills Report 2026
