Massive Hiring Wave in Australia Expected as per Australia’s Labor Market Report 2025

The Australian Government has released its much-anticipated Labour Market Report for 2025, detailing employment trends, skill shortages, and high-demand occupations crucial for overseas skilled workers. As Australia continues to maintain a strong but evolving economy, certain sectors are experiencing significant job growth, while others are seeing a decline.

For skilled migrants seeking opportunities in Australia, understanding these labour market dynamics is essential for securing employment and obtaining the right work visa. This report released in 2025 provides insights into which industries are booming, which occupations are in high demand, and the migration pathways available for skilled professionals.

Booming Industries: Where Are the Jobs?

The latest employment data from the Australian Bureau of Statistics (ABS) shows that Australia’s labour market remains resilient but is undergoing changes across various industries. The sectors experiencing the largest employment increases over the past year include:

1. 1. Health Care and Social Assistance (+70,200 jobs)
   2. Education and Training (+54,900 jobs)
   3. Accommodation and Food Services (+42,700 jobs)
   4. Electricity, Gas, Water and Waste Services (+8.0% growth rate)
   5. Rental, Hiring and Real Estate Services (+6.1% growth rate)

These industries are projected to continue growing in 2025, making them key areas for skilled migrants seeking employment in Australia.

On the flip side, certain industries have experienced job losses, with Manufacturing (-16,400 jobs), Financial and Insurance Services (-7,800 jobs), and Professional, Scientific and Technical Services (-7,200 jobs) facing declines. This indicates that while some traditional white-collar roles are shrinking, demand is shifting towards sectors requiring hands-on and service-oriented expertise.

High-Demand Occupations for Skilled Migrants

The Australian Government’s Occupation Shortage List (OSL) identifies professions that are currently facing national skill shortages. As of 2025, the most in-demand occupations for skilled migrants include:

1# Engineering Professionals (Critical Shortage)

• • Civil Engineers (shortage in all states and territories)
  • Electrical Engineers
  • Mechanical and Production Engineers
  • Mining Engineers
  • Reliability Engineers and Logistics Engineers (emerging fields).

2# Healthcare and Social Assistance

• • Registered Nurses and Midwives
  • Aged Care and Disability Support Workers
  • Medical Practitioners (General Practitioners, Surgeons, Specialists)
  • Psychologists and Counsellors.

3# Education and Training

• • Early Childhood Teachers
  • Secondary School Teachers (Math, Science, Special Education)
  • Vocational Education Trainers (Trades and Technology)

4# Trades and Technicians

• • Electricians and Plumbers
  • Construction Workers (Carpenters, Welders, Roofers)
  • Automotive Technicians and Mechanics.

5# Hospitality and Tourism

• • Chefs and Cooks
  • Hotel and Accommodation Managers
  • Event Planners and Tourism Operators.

These occupations are vital for Australia’s continued economic stability, and migrants with relevant qualifications and experience are encouraged to explore work visa options.

Regional Demand: Where Should Skilled Workers Move?

Australia’s employment trends vary by state and territory, meaning that certain areas have a higher demand for skilled workers. According to the report:

• Australian Capital Territory (ACT) has the highest employment share in Managers, Professionals, and Technicians & Trades Workers (61.0%).
• Victoria and New South Wales (NSW) follow closely with over 54% of employment in these high-demand occupations.
• Queensland and Northern Territory showed little or no employment growth in key skilled sectors.
• Western Australia (WA) and South Australia (SA) are seeing gradual increases in skilled employment, particularly in healthcare and construction.

For migrants, targeting ACT, Victoria, and NSW for high-skilled jobs, or WA and SA for trade and technical roles, may provide better opportunities.

Unemployment and Migrant Employment Trends

While the national unemployment rate remains at a manageable 4.0%, it has slightly increased from 3.9% in 2023. The ACT recorded the lowest unemployment rate at 3.2%, whereas Victoria and Northern Territory had the highest at 4.4%.

For migrants, employment rates vary depending on their country of origin and length of stay in Australia:

• Recent migrants face higher unemployment rates due to factors such as English proficiency and lack of Australian work experience.
• Migrants from North-West Europe have the lowest unemployment rate at 3.0%, while those from North Africa and the Middle East face higher rates (6.9%).

This reinforces the importance of skills assessments, networking, and job readiness programs for newcomers seeking work in Australia.

Impact on Work Visas: How Can Migrants Secure a Job?

With labour shortages in key sectors, the Australian Government continues to streamline work visa pathways for skilled professionals. Some of the most relevant work visas for 2025 include:

1# Temporary Skill Shortage (TSS) Visa (Subclass 482)

• • Best for engineers, healthcare workers, and tradespeople.
  • Requires employer sponsorship.
  • Leads to permanent residency through employer nomination.

2# Skilled Nominated Visa (Subclass 190)

• • For skilled migrants nominated by an Australian state or territory.
  • Permanent residency pathway.

3# Skilled Work Regional (Provisional) Visa (Subclass 491)

• • For skilled workers willing to live and work in regional Australia.
  • Priority processing for high-demand occupations.

4# Global Talent Visa (Subclass 858)

• • Targets highly skilled professionals in fields like engineering, technology, and healthcare.
  • Provides a fast-track to permanent residency.

For migrants, aligning skills with Australia’s occupation shortage list and applying for the right visa increases the chances of successfully securing employment and residency.

Report: https://www.jobsandskills.gov.au/publications/australian-labour-market-migrants-january-2025, https://www.jobsandskills.gov.au/research/emerging-roles.

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