Revealed: The industry sectors facing the most significant skills shortages in 2022

Eleven of Australia’s 20 largest employment sectors are facing a skills shortage in 2022, the National Skills Commission (NSC) says, underscoring the challenges facing businesses looking to build their workforce — or maintain the staff they already have.

In its annual Skills Priority List, released Thursday, the NSC found 286 out of 914 assessable occupations, or 31%, have experienced worker shortages this year.

Those findings represent a significant uptick from 2021, when 153 out of 799 assessed occupations, or 19%, faced a worker shortfall.

Of the 20 largest employment sectors, the occupations facing labour shortages include:

• Retail manager (general);
• Primary school teacher;
• Secondary school teacher;
• Truck driver (general);
• Aged or disabled carer;
• Electrician (general);
• Child care worker;
• Carpenter;
• Program or project administrator;
• Chef; and
• Motor mechanic (general).

Australia’s small business environment has been defined by those workforce shortages in 2022, and those deficits are demonstrated in both decades-low unemployment rates and extraordinarily high job vacancy numbers.

But the NSC data details how multiple factors — including pandemic-era border closures which suppressed immigration rates, an ageing population in need of healthcare and support services, worker burnout, and extreme construction demand — may have drained the pool of available labour.

The proportion of occupations in the health professionals category facing worker shortages has risen 47% in 2022, the NSC says, with the number of applicants deemed ‘suitable’ for vacant roles dropping from 2.8 in 2021 to just 1.5 in 2022.

All six occupations in the registered nurse subcategory are facing shortages, the report says.

The exhaustion of providing care through the pandemic may have pushed some workers out of the sector.

“The impacts of redeployment and burn out could be lingering and/or ongoing”, the report notes, given the successive waves of COVID-19 infection applying pressure to the healthcare workforce.

Echoing the concerns of builders and homeowners alike, the number of technicians and trades workers occupations facing worker shortages grew to 47% in 2022, up from 42% in 2021.

The proportion of occupations under the labourers banner facing worker shortfalls has also exploded: from 0% in 2021, 26% of occupation titles under that category are now reporting shortages.

The national teacher shortage is also laid bare in the report.

While the number of university graduates deemed suitable for primary and secondary school teaching roles has been deemed adequate to meet demand, the number of suitable applicants per vacancy has plummeted from 3.8 in 2021 to just 1.8 in 2022.

The “true” supply of teachers may be impacted by “remuneration and perceptions of remuneration [and] impacts on wellbeing and mental health”, suggesting qualified graduates may be deterred by the pay and conditions on offer for entry-level teaching positions.

Skills Minister calls on employers to do more

The report arrives one day before Minister for Skills and Training Brendan O’Connor convenes with state and territory ministers to coordinate a response to growing skill deficits.

Speaking on Today Thursday morning, O’Connor said much of the focus is on expediting the approval of skilled visa applications to clear a backlog of would-be workers hoping to enter Australia.

“We inherited a situation where we have had congested, constipated processes when it comes to skilled migration pathways,” he said.

Some of that work is already underway, O’Connor added, referring to the Albanese government’s Jobs and Skills Summit commitment to boost the 2022 permanent migration intake from 160,000 to 195,000, and its plan to expand the number of fee-free TAFE places.

Industry groups have also spoken out.

In light of the NSC report, the Australian Chamber of Commerce and Industry has called on the federal government to change the rules for the 100,000 international graduates currently in Australia, expanding the ways in which they can work.

The Australian Computer Society CEO Chris Vein, whose organisation has long shared its concerns over shortfalls in Australia’s IT and tech workforce, today reiterated his calls for “increased funding for reskilling, diversity programs, and support for workers and employers looking to boost their digital skills”.

But O’Connor said the shortage cannot be solved by government intervention on immigration and training alone, calling on employers to open up skills pathways for workers themselves.

“And I also think that employers need to do more,” he told ABC’s News Breakfast.

“Some employers do remarkably well investing in skills, and it’s good for their companies when they do so. I think some employers could do better than they do now.”

The NSC data also highlights another way businesses could vie for talent: offering higher wages in their job ads.

Just 0.4% of employers with unfilled vacancies said they would consider changing the remuneration for their open roles.

By comparison, 6% said they would consider giving up on filling the role entirely, and 7% would contemplate restructuring their organisation.