In this policy update, we highlight important reports and initiatives that were announced in February and March 2026 that influence the Arts, Personal Services, Retail, Tourism, Hospitality and Vocational Education and Training (VET) sectors, as well as the broader economic landscape.
Productivity Commission – Report on Government Services 2026 – Childcare, education and training (part B)
On 11 February, the Productivity Commission released the Report on Government Services 2026 – Childcare, education and training. The report shows that in 2025, 62.6% of Australians aged 15–24 participated in education and training. This includes 81.1% of those aged 15–19 and 45% of those aged 20–24. In comparison, participation among people aged 25–64 was 8%.
The report states that the sector aims to deliver education and training that equips learners with the knowledge, skills and competencies needed for a productive and rewarding life.
Key insights include:
- In 2025, 65.8% of people aged 20–64 held a qualification at Certificate III level or above.
- Government-funded VET qualification completions have increased over the past four years. In 2024, around 354,700 qualifications were completed.
- Student satisfaction has remained stable, while employer satisfaction has declined:
- 5% of government-funded VET completers (aged 15–64) were satisfied with the quality of their training in 2024, unchanged from 2020.
- Employer satisfaction with VET engagement was 66.4% in 2023, down from 69.2% in 2019.
- A higher proportion of learners achieved their main reason for training and reported improved employment or further study outcomes.
Access the full report here
Closing the Gap – Commonwealth Annual Report 2025, Commonwealth Implementation Plan 2026
On 12 February, the Prime Minister released the Closing the Gap 2025 Annual Report and 2026 Implementation Plan. The report assesses progress against the 2025 Implementation Plan and outlines the Commonwealth’s priorities for the year ahead.
Key 2025 delivery and outcomes highlights include:
- The Remote Jobs and Economic Development Program supported around 1,700 new jobs.
- 37% of Launch into Work participants are First Nations people, with 79% moving into employment immediately after completing the program.
- Workforce Australia supported almost 8,000 First Nations participants into employment.
- 9,139 First Nations students enrolled in Free TAFE, representing 5.7% of total enrolments.
- The Indigenous Languages and Arts Program funded 29 community-based language conservation and revitalisation activities.
Key priorities for 2026 include:
- $31 million through the TAFE Technology Fund to support mobile VET delivery in remote First Nations communities.
- $5 million over four years to develop accredited teaching credentials and support First Nations participation.
- Expansion of the Remote Jobs and Economic Development Program, with $290 million to create an additional 3,000 jobs, contributing to 6,000 new jobs by 2030.
- Continued rollout of the Remote Australia Employment Service to improve employment outcomes and services.
Access the full report here
Heartland – A Plan for Regional NSW Arts, Culture and Creative Industries
On 17 February, the NSW Government released Heartland – A Plan for Regional NSW Arts, Culture and Creative Industries, the first dedicated regional arts plan in New South Wales. A key focus of the plan is establishing a stronger support framework for Regional Arts Development Organisations.
The plan highlights the importance of regional NSW to the state’s creative economy. Regional areas are home to nearly 40% of the population, with 6% identifying as Aboriginal and Torres Strait Islander. The regional creative sector employs 52,520 people, representing 14% of the state’s creative workforce, and contributes more than $6.2 billion in cultural tourism spend.
The plan outlines the following priorities:
- Elevate the profile and economic contribution of First Nations arts and cultural practitioners and Aboriginal-led organisations, guided by Closing the Gap Priority Reforms.
- Strengthen capacity and investment in regional arts and culture, improve connections across networks, and support new partnership and philanthropic models.
- Increase collaboration across NSW Government, local councils, universities and VET providers, including the development of creative spaces and hubs.
- Expand career pathway opportunities for creative workers, volunteers and young people to support workforce retention and skills development.
- Improve access to arts and culture across regional NSW by supporting cross-regional, national and international touring.
- Raise the profile of regional arts and cultural production through improved coordination across the state.
- Grow arts and cultural tourism to attract new audiences, strengthen partnerships and support a sustainable regional ecosystem.
Read the full plan here
TiCSA – Tourism Barometer – December Quarter 2025
On 4 March, TiCSA released its Tourism Barometer for the December Quarter 2025. The report indicates that South Australia’s tourism sector ended 2025 on a more positive note, with strong rebounds in both Business Activity and Business Outlook following declines in the June and September quarters due to natural disasters.
Despite this improvement, the index remained below the neutral level, where it has sat in six of the past seven quarters.
Key employment and wages insights include:
- Most tourism businesses reported no change in employment levels.
- Following the Algal Bloom, there was an increase in businesses reporting employment growth in the June and September quarters.
- In the December quarter, fewer respondents reported an increase in their wage bill, suggesting wage inflation may be moderating after strong post-COVID growth.
- ABS Labour Force data shows employment in South Australia’s accommodation and food services industry increased by 3,700 people to 66,400 in the November quarter 2025.
- Employment in the sector grew by 14.7% over the year, surpassing the previous peak recorded in November quarter 2022.
- This growth was likely supported by the Reserve Bank of Australia reducing interest rates three times during 2025.
Access the full report here
NSW Visitor Experiences: State of Play
On 6 March, Destination NSW released NSW Visitor Experiences: State of Play, which provides insights into the experiences shaping tourism demand across the state.
The research supports the NSW tourism industry to identify areas of demand and explore practical opportunities for collaboration with industry providers.
The findings are presented across 10 reports, covering: Aboriginal experiences, agritourism, aquatic and coastal experiences, arts and culture, journeys, luxury and wellness, nature-based experiences, outdoor activities, social impact tourism and urban tourism.
Access the research here
JSA – Regional Labour Market Indicator Results – December 2025
On 2 February, JSA released the Regional Labour Market Indicator (RLMI) Results for December 2025. The report highlights that labour market challenges remain more pronounced in regional and remote areas.
The findings show that regional and remote areas are more likely to experience weaker labour market conditions than major cities, underscoring the ongoing challenges for employers and job seekers outside metropolitan areas.
Key findings include:
- 17 of 37 SA4 regions in regional areas were rated ‘below average’ or ‘poor’ in December 2025, while all six remote regions were rated ‘poor’.
- In contrast, 32 of 44 SA4 regions in major cities were rated ‘strong’ or ‘above average’.
The December release also introduces a combined rating for Northern Australia. This reflects cross-border labour market dynamics and provides a more integrated evidence base to support jobs and skills planning across jurisdictions.
Access the full report here
JSA – Vacancy Report – January 2026
On 18 February, JSA released its Vacancy Report for January 2026. The report is based on a monthly data series measuring online job advertisements across SEEK, CareerOne and Workforce Australia.
Key insights include:
- Job advertisements increased by 3.6% nationally in January, continuing recent month-to-month fluctuations and suggesting a possible slowdown in the downward trend observed from June 2022 to early 2025.
- Advertisement levels remain elevated, with around 30% more job ads compared to the 2019 monthly average.
- Over the year to January 2026, job advertisements decreased slightly by 0.9% but remain high by historical standards.
- Recruitment activity increased across seven states and territories over the month.
- Job advertisements rose across all Skill Level groups.
- Advertisements also increased across all Major Occupation groups.
- Recruitment activity remained concentrated in metropolitan areas, with 69.1% of job ads located in capital cities.
The report also includes a spotlight on Northern Australia.
Access the full report here
JSA – Recruitment Experiences and Outlook Survey Spotlight – Successful Recruitment Methods
On 26 February, JSA released a Recruitment Experiences and Outlook Survey (REOS) spotlight on successful recruitment methods. The report shows that recruitment practices in Australia continue to evolve, with employers using a mix of formal and informal approaches to attract talent.
Key findings include:
- Online job boards remain the most widely used and most effective method, with more than half of employers using them and 40% reporting a successful hire through this channel.
- Most employers use a single recruitment method, while those experiencing recruitment difficulty are more likely to adopt multiple methods to expand their applicant pool.
- Informal methods, such as word of mouth and direct approaches from job seekers, continue to deliver strong results across occupations and regions.
- Recruitment approaches vary by skill level. Higher-skilled roles are more likely to be advertised online and require multiple methods, while lower-skilled roles are often filled through informal or low-cost channels.
- Recruitment patterns differ by industry and location, with metropolitan employers favouring online methods and regional employers relying more on social media and personal networks.
- Job seekers benefit from using multiple job search strategies, including proactive approaches outside traditional application processes.
Relevance to SaCSA sectors:
- Accommodation and Food Services and Arts and Recreation Services, rely heavily on word of mouth and social media, with lower use of online job boards.
- These sectors report relatively low recruitment difficulty, suggesting that informal, locally focused methods remain effective in attracting workers.
Access the full spotlight here
JSA – International Labour Market Update – February 2026
On 27 February, JSA released its International Labour Market Update for February 2026. The report provides key labour market data and insights on skill shortages across Australia and selected international markets.
Key insights include:
- The OECD reported a softening in global labour market conditions in 2025.
- Job openings per unemployed person continued to decline across major economies, including the United States, United Kingdom, Germany, Canada and Japan, falling below 2019 levels.
- The United Nations reported that global labour markets remained stable in 2025.
- The global unemployment rate held steady at around 5% and is projected to decline slightly to 4.9% in 2026.
- The International Labour Organization (ILO) noted that slower growth in the global labour force is contributing to stable unemployment rates.
- The ILO projects global labour force participation will decline by 0.2 percentage points per year, reaching 60.5% by 2027.
Access the full report here
We encourage our stakeholders to delve deeper into these reports and strategies to understand their potential impact and leverage them in planning and decision-making. As always, we remain committed to supporting a vibrant and sustainable workforce across all industries.
Author: Shane Kocass, Policy and Government Relations Adviser at SaCSA, analyses government policies, fosters meaningful engagement with government stakeholders, and assists in navigating the complex policy landscape to drive impactful outcomes.