On 15 October 2024, Jobs and Skills Australia (JSA) released an interim report for the Regional, Rural and Remote Jobs and Skills Roadmap. This report builds on insights from the 2023 Annual Jobs and Skills Report, which proposed 14 opportunities, including this Roadmap.
The interim report focuses on the unique experiences and perspectives of Australians who live and work outside major metropolitan areas. It looks at the trends shaping the Australian labour market from a workforce and skills-needs perspective in regional, rural and remote Australia.
Considerations include:
- ageing populations and the rising demand for care and support services
- an increased use of digital and advanced technologies
- the net zero transformation roll out across the broader economy
- high unemployment, limited job opportunities, lower education levels and difficulties attracting suitable workers
- gender segregation
- decreased remote education opportunities
Labour Market Trends and Challenges in Regional Australia
Australia’s labour market remains relatively strong despite a recent slowdown in economic activity. Regional and remote areas face unique challenges that could disproportionately affect their workforce. One of the most significant issues is the impact of decarbonisation on regions with a high concentration of workers in transitioning sectors. As Australia moves towards a net-zero future, many regional communities, particularly those dependent on industries like mining and fossil fuels, will feel the effects more acutely.
Policymakers are increasingly focused on understanding how well different regions can adapt to these economic transitions. The recent strength in the labour market has enabled more people in cohorts that traditionally face barriers to employment to find work. A rise in the unemployment rate and a slight decline in hours worked suggest some signs of labour market slack are emerging. Employees in regional and remote areas face additional difficulties, such as low and irregular pay, which can significantly impact financial security and hinder long-term life planning.
Regional Recruitment Experiences and Skills Shortages
Regional Australia continues to face significant challenges in attracting qualified candidates for available jobs. Compared to capital cities, regional areas have lower numbers of applicants per vacancy, fewer qualified applicants, and lower job fill rates. These difficulties highlight the ongoing struggle to meet labour demand in rural and remote regions.
Despite a national decline in labour demand, as indicated by JSA’s Internet Vacancy Index and Recruitment Experiences and Outcomes Survey (REOS), Inner Regional Australia reported a higher recruitment rate than major cities. In the June quarter of 2024, Inner Regional areas achieved a recruitment rate of 52%, compared to 43% in Australia’s major cities.
The Regional Skills System
Universities headquartered in regional areas experience higher student attrition rates compared to the national average, further compounding the challenge of building a skilled workforce in these regions. The Australian Universities Accord has highlighted the need to increase tertiary education in remote and regional communities if Australia is to meet its future skill requirements. The Accord set a national target: by 2050, at least 80% of the working-age population should hold a tertiary qualification, up from 60% in 2023.
Roadmap Objectives
The interim report outlines the objectives of the upcoming Roadmap, which will:
- Identify the drivers and pressures on regional labour markets
- Assess the current performance of the regional skills system
- Identify changes to the regional skills system resulting from current reform processes and their likely impact
- Identify the residual challenges and explore potential remedies for discussion with key stakeholders and policymakers
Why the Roadmap Matters: Practical Outcomes for Industry
The insights from this interim report provide a foundation for shaping tailored strategies that address the unique workforce needs of regional, rural, and remote areas. This roadmap is being shaped by a wide array of inputs from regional stakeholders, including local governments, educational institutions, and industry groups. These contributions ensure that the final recommendations will be well aligned with the real-time demands of Australia’s rural and remote communities.
For stakeholders in these regions, the Roadmap’s findings are an opportunity to tackle challenges head-on by improving access to education, supporting workforce transitions, and engaging in regional economic development. Policymakers and industry leaders are encouraged to leverage the Roadmap’s insights to build more resilient and adaptive labour markets.
What’s Next? Continuing Advocacy and Action
As the Roadmap continues to develop, regional industries and policymakers will have opportunities to collaborate on solutions tailored to their unique needs. Engagement with local stakeholders will be essential to ensure that these strategies meet the real-time demands of the workforce.
To meet the growing needs of Australia’s regional labour market, the final roadmap will offer detailed recommendations for addressing skills shortages, fostering economic resilience, and supporting future workforce transitions. SaCSA will continue to advocate for additional reforms and support that will benefit regional industries, ensuring that future policies help mitigate the challenges outlined in the interim report.