The 2025 Occupation Shortage List (OSL) reveals a notable easing in labour market pressures, with 29% of occupations currently in shortage – down from 36% in 2023 and 33% in 2024. This improvement is attributed to a rise in qualified applicants, higher vacancy fill rates, reduced recruitment difficulty, and softer demand. However, significant gaps persist, particularly in trade roles and professional occupations within health, education, and construction. These shortages are especially concerning in industries experiencing below-average productivity growth, highlighting the need for targeted workforce solutions.
The data also underscores the positive impact of diversity, equity and inclusion showing that occupations with gender balance and greater inclusion of women, older workers, First Nations people, and people with disability are less likely to face shortages; however, male-dominated roles, especially in the trades, remain persistently difficult to fill.
The accompanying Occupation Shortage Drivers (OSD) report identifies the main causes of shortages, with the leading factor being a lack of qualified applicants, especially in health, teaching, and construction. Even among qualified candidates, employers report deficits in employability skills and experience, particularly in engineering, science, and management. Additionally, low pay, poor working conditions, and retention challenges are identified as driving shortages in care and service roles.
