Skills Shortages

A skill shortage exists when employers can’t fill vacancies in an occupation or in a specialisation of that occupation. For this definition to hold true, the vacancies must reflect current levels of pay and standard employment conditions and must exist in a geographical location that is reasonably easy to access. Skill shortages can occur for a variety of reasons.

  • Cyclical economic shifts: Australia is increasingly exposed to fluctuations in the global economy. As a result, the number of job openings shifts up or down.
  • Regional mismatches: Skilled personnel may be in short supply in a particular region.
  • Training levels: There may be a low number of qualified workers with specialized skills.
  • Labour market restructuring: The introduction of new technology, or changes to the structure of the economy can lead to rapid changes in the demand for an occupation, creating a sudden oversupply or shortfall of qualified people.

While demand for particular skills is useful to take into account, it is necessary to understand that the labour market can change quickly. If you decide to complete training or education, the skills in shortage today may not be in shortage when you have completed your course and are ready to look for a job.

Also, a skill shortage does not guarantee you a job in an occupation. Shortages that exist are sometimes in occupations or specializations that require a mix of specific skills and experience.