Pathways to Success - Jobs and Skills Report 2026
Jobs and Skills Australia’s 2026 Jobs and Skills Report helps Australia better understand and prepare for changing workforce needs. As the definitive annual assessment of Australia's jobs and skills landscape, it brings together evidence on jobs, skills and workforce participation to support better decisions by governments, employers, education providers and individuals, and to help build a more productive, inclusive and resilient labour market.
Australia’s labour market is strong, providing a solid foundation for future change. Participation is around record highs and unemployment has remained at or below 4.5% since December 2021, the longest period since the 1970s.
The share of occupations facing skills shortages has fallen from 36% in 2023 to 29% in 2025 but almost 3 in 10 occupations remain in shortage.
33% of women and 27% of men work in occupations below their skill potential, highlighting a major opportunity to better use the skills Australia already has.
References to critical thinking and problem-solving in construction trade job advertisements have more than tripled over the past decade, showing that employers increasingly need broader capabilities alongside technical trade skills.