​The skills shortage: A growing challenge for employers

The newly released Jobs and Skills Australia Report 2025 paints a clear picture: Australia’s labour market is facing persistent and systemic skills shortages. These shortages aren’tjust about high demand, they’re driven by structural mismatches, long training pipelines, and retention challenges.

According to the report, 139 occupations have been in persistent shortage for five years, with the majority in construction, engineering, health, and early childhood education. These shortages are impacting productivity, delaying projects, and increasing recruitment costs. 

Key drivers of the shortage

Jobs and Skills Australia categorises shortages into four main types:

Long training gaps: Roles like secondary school teachers and metal fitters require lengthy qualifications, slowing workforce entry.

Suitability gaps: Applicants may be qualified but lack experience or employability skills, especially in engineering and tech.

Retention gaps: High turnover in care, hospitality, and construction roles due to poor conditions and low pay.

Uncertain causes: Some shortages, like those for registered nurses, are driven by a mix of factors including burnout and systemic issues. 

Real-life example: Construction worker shortage threatens housing targets

An article by ABC News revealed that Australia’s ambitious goal to build 1.2 million new homes by 2029 is under serious threat due to a lack of skilled construction workers. The article talks about the importance of apprenticeships and retaining them. According to Master Builders Australia, the number of people completing construction apprenticeships dropped by 15% in 2023, with just over 21,400 completions. Even more concerning, apprenticeship commencements fell by 22%, down to just under 42,000 new starters.

What employers can do now

To stay competitive in this tight labour market, employers should consider:

1. Rethinking job design
   Improve working conditions, offer flexible hours, and provide clear career pathways to make roles more attractive.

2. Investing in training
   Support apprenticeships and offer mentorship programs to help new workers gain experience and confidence.

3. Broadening talent pools
   Consider hiring mature workers, migrants, and women in trades—groups that are often underrepresented but highly capable.

4. Partnering with education providers
   Collaborate with TAFEs and trade schools to co-design training programs and offer real-world placements.

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Inclusivity can reduce shortages

MTC FutureReady’ssmart paper –“Profit and Purpose: Why Inclusive Hiring Makes Good Business Sense” highlights a critical opportunity many employers are still overlooking: tapping into alternative talent pools, especially people with disability. Businesses that embrace disability-inclusive hiring often report higher retention, stronger morale, and improved productivity and innovation. Yet despite these benefitsand escalating labour shortagesmany employers continue to rely on traditional recruitment methods that unintentionally exclude capable candidates.

Another group often excluded from the workforce is parents, particularly mothers, who are eager to work but need flexibility. Offering part-time roles, flexible hours, or even a four-day work week could bring more boots on the ground almost immediately. There’s also untapped potential in migrant workers, many of whom bring valuable experience but face qualification and cultural barriers. By modernising hiring practices and removing unnecessary roadblocks, employers can unlock a broader, more resilient workforce.

Need help finding skilled tradies?

At MTC Recruitment, we specialise in connecting employers with qualified tradespeople across Greater Sydney. Whether you're building a team or filling urgent roles, we’re here to help. Get in touch today to find the right talent for your next project.