The July 2025 Australian Labour Market for Migrants report from Jobs and Skills Australia, highlights ongoing changes in Australia’s labour market, with implications for both migrant workers and the VET sector. Overall, employment growth remains positive, particularly in Health Care and Social Assistance, Education and Training, and Public Administration. These sectors saw the largest increases in job numbers, while Manufacturing and Agriculture experienced the biggest declines. Technicians and Trades Workers, Community and Personal Service Workers, and Professionals recorded strong job growth, underscoring the continued demand for skilled VET graduates.
Unemployment remains relatively low nationwide at 4.1%, though conditions vary by state. At the same time, the share of employment in higher-skilled occupational groups, such as Professionals and Trades Workers, has increased in most states, pointing to a labour market that is becoming more dependent on skilled workers.
Migrants make up a significant share of the workforce, particularly in Victoria, New South Wales, and the ACT, where around 30% of workers are from non-English-speaking backgrounds. However, newly arrived migrants often face higher unemployment rates due to limited English proficiency, lack of local work experience, and challenges in qualification recognition. VET providers (and their English language partners) have a key role to play in supporting this cohort through targeted English language training, job readiness programs, and pathways that recognise prior learning or qualifications.
While there is strong demand for skilled workers, internet vacancy data shows that job advertisements have declined across all occupation groups over the year to May 2025. Notably, vacancies for Hospitality Workers, Food Preparation Assistants, and Engineers dropped sharply. Despite this overall decline, there were pockets of growth, including in Construction Trades and Horticultural occupations.
The report includes a ‘Hot Topic on Temporary Skilled Migration’ section which sheds light on where employers are sponsoring overseas workers to fill persistent shortages, many of which fall within VET-aligned occupations. For example, the construction sector saw rising numbers of TSS (Temporary Skill Shortage) visas granted to workers from the Philippines, particularly in trades like glazing, painting, and welding. The health sector also continues to rely on overseas-trained Registered Nurses, especially in aged care and mental health, while engineering remains reliant on skilled migrants from India, the UK, and the Philippines.
In summary, this report provides valuable insights for VET professionals on both the domestic and migrant dimensions of the labour market. It confirms growing demand for skilled workers, it highlights gaps that migrants often fill, and underlines the need to support new arrivals with accessible, high-quality training.
