The latest employment data from Jobs and Skills Australia, March 2025 Labour Market Update, is good news for VET graduates and the RTOs who train them.
The update found that the Australian labour market remained resilient despite a slight rise in unemployment to 4.1 per cent. Recruitment activity declined compared to previous quarters, and job advertisements continued a downward trend, although they are still above pre-COVID levels.
Employment increased in most jurisdictions, with South Australia and Victoria showing the strongest gains, and pleasingly, youth employment outcomes also improved slightly.
Crucially for the VET sector, employment growth over the past year has been strongest in occupations which typically require VET qualifications. Skill Level 3 occupations (which require Certificate IV qualifications and Certificate III qualifications which include two years on-the-job training) recorded the largest annual growth (+77,200 jobs), followed by Skill Level 1 (jobs requiring degrees +75,600 jobs) and Skill Level 4 (jobs requiring Certificates II and shorter duration Certificate III qualifications +63,700 jobs).
Industry-level analysis shows that the main drivers of employment growth were:
- Health Care and Social Assistance
- Education and Training, and
At the occupational level – Community and Personal Service Workers (+71,700 jobs) and Technicians and Trades Workers (+49,400), two major VET-relevant occupational groups – also experienced substantial growth.
Finally, while employers are increasingly able to fill vacancies, especially in metropolitan areas, recruitment difficulties remain in sectors like manufacturing, retail, and professional services. The accommodation and food services (hospitality) industry stands out for its high recruitment rate and relatively low recruitment difficulty, offering opportunities for entry-level and VET-trained workers.
Overall, these trends point to a sustained and growing demand for VET graduates and reinforce the need for responsive, high-quality VET closely aligned to industry needs.
