Jobs and Skills Australia (JSA) has released the much-anticipated 2024 Occupation Shortage List (OSL), previously known as the Skills Priority List. The OSL provides a detailed overview of the occupations currently facing the most severe shortages across Australia, where employers are struggling to fill vacancies despite extensive recruitment efforts. The list underscores the continued challenges in meeting the demands of the nation’s labour market, with some of the most crucial sectors being hit the hardest.
Top 20 Occupations Facing Critical Shortages
The 2024 OSL identifies the top 20 occupations facing the greatest shortages by overall employment size. These roles are critical to the country’s economy and well-being, and the shortages in these areas represent a significant hurdle to Australia’s workforce development:
- Aged or Disabled Carer
- Primary School Teacher
- Secondary School Teacher
- Truck Driver (General)
- Electrician (General)
- Child Care Worker
- Sales and Marketing Manager
- Carpenter
- Chef
- Motor Mechanic (General)
- Solicitor
- Fitter (General)
- Construction Project Manager
- Software Engineer
- Hairdresser
- General Practitioner
- Project Builder
- Developer Programmer
- Metal Fabricator
- Personal Care Assistant
These occupations reflect a wide range of industries, from healthcare and education to construction, IT, and legal services. The shortages in these fields are not only affecting businesses and service providers but are also impacting broader societal needs, such as healthcare for an ageing population, education for future generations, and the maintenance of essential infrastructure.
33% of Occupations in Shortage: A Slight Improvement but Serious Gaps Remain
While the latest data reveals that 33% of occupations (303 out of 916) are currently in national shortage, this marks a slight improvement from 36% in 2023. Jobs and Skills Australia attributes this modest decrease to an overall softening of the labour market. However, despite this improvement, significant gaps remain, particularly in the top 20 occupations, which are some of the most employed roles in the country.
The slight reduction in shortages doesn’t negate the severity of the issue. For instance, the demand for aged or disabled carers, primary and secondary school teachers, and truck drivers is higher than ever. These are critical roles that ensure the health, education, and logistics systems in Australia remain functional. The ongoing shortages in these sectors are creating bottlenecks in service delivery and increasing pressure on existing workers, who are often overburdened due to understaffing.
The Role of Gender Imbalance in Workforce Shortages
One of the more striking findings from the OSL is the impact of gender imbalance in occupations that are facing shortages. The majority of the top 20 occupations are highly gendered, meaning that either men or women dominate the workforce in those fields. For example, women make up an overwhelming 76.7% of aged and disabled carers, and 96.8% of childcare workers are also female. On the other hand, 99% of carpenters and a significant portion of truck drivers are men.
This lack of gender diversity in certain occupations may be contributing to the shortages. Jobs and Skills Australia’s report suggests that addressing gender imbalances in the workforce could be a viable long-term strategy for mitigating these shortages. Encouraging greater gender diversity in traditionally male- or female-dominated fields could help alleviate the labour supply issues plaguing these sectors.
Interestingly, only two occupations in the top 20 showed anything approaching gender parity: solicitors (45.8% men, 54.2% women) and general practitioners (52.3% men, 47.7% women). These two roles, while still facing shortages, appear to have benefited from a more balanced workforce, reinforcing the idea that greater diversity could be key to solving broader labour market issues.
Age Inclusiveness as a Solution to Shortages
Another important factor highlighted by the OSL is the role of age inclusiveness in alleviating workforce shortages. The analysis found that occupations with a higher proportion of mature-aged workers (defined as those aged 50 or older) are less likely to experience shortages. In fact, only 19% of occupations with at least 30% mature-aged workers are currently in shortage, compared to 44% of occupations where older workers represent less than 10% of the workforce.
Given Australia’s ageing population, embracing age inclusiveness in recruitment and retention strategies may help reduce shortages in key sectors. Employers are encouraged to adopt practices that support older workers, such as flexible working arrangements and targeted training programs that enable mature-aged employees to continue contributing effectively to the workforce.
Recruitment Strategies and Stubborn Shortages
One surprising finding from the 2024 OSL is that many employers are not adjusting their recruitment strategies, despite persistent difficulties in filling vacancies. The report found that 73% of employers continue to advertise for positions in the same places and using the same methods, even when vacancies go unfilled for extended periods. Only 1% of employers have adjusted pay as a means of attracting new talent, pointing to a reluctance to use financial incentives to address shortages.
This lack of adaptability in recruitment practices may be exacerbating the problem. Employers need to explore a wider range of recruitment strategies, including expanding the scope of their advertising, offering more competitive pay and benefits, and providing additional support for training and development.
The Importance of the Occupation Shortage List for Policy and Training Funding
The OSL plays a vital role in shaping the training funding and policies needed to address Australia’s evolving labour market needs. The data and insights provided by the OSL inform government and industry leaders about where to allocate resources and which occupations require immediate attention in terms of training and workforce development.
The shortages identified in the 2024 OSL should prompt immediate action. For example, increased funding and support for training programs for aged and disabled carers, electricians, and educators could help fill critical gaps in the workforce. Additionally, promoting gender diversity and age inclusiveness in key sectors could help mitigate future shortages and create a more resilient labour market.
Updates to the Occupation Shortage List Tool
Jobs and Skills Australia has made several updates to the OSL online tool to enhance its accessibility and usability. One notable improvement is the addition of a metropolitan shortage rating, which provides a clearer picture of shortages not only at the national level but also across regions and states/territories. This geographic breakdown allows policymakers and employers to target resources where they are needed most.
Additionally, the tool now includes a skill level filter, which makes it easier for users to find relevant occupations based on specific skill requirements. These updates are designed to help employers, job seekers, and policymakers make more informed decisions about labour market trends and opportunities.
The Path Forward: Addressing Australia’s Labour Market Challenges
The 2024 Occupation Shortage List serves as a critical reminder that while Australia’s labour market may be softening slightly, significant challenges remain in key sectors. Addressing these shortages will require a coordinated effort from government, industry, and training providers.
To ensure a sustainable and resilient workforce, Australia must invest in training and development, promote diversity and inclusiveness in the workforce, and encourage employers to adopt more flexible and innovative recruitment strategies. The insights provided by the OSL are invaluable in shaping the policies and funding allocations needed to address the country’s labour market needs and secure its economic future.
By tackling these challenges head-on, Australia can build a stronger, more inclusive workforce that meets the demands of a rapidly changing economy.
