Regional Australia facing shortage of workers

While unemployment in regional Australia has fallen to 3.8%, job vacancies have ballooned, highlighted a report by the Regional Australia Institute. 

The number of workers employed in regional Australia last December was just 1% more than in December 2020, while the number of job ads had ballooned by 36%. 

“The overall driver of these low unemployment numbers and rapid increase in job advertising is because the total size of the employment pool has been so diminished by the closing of international borders,” said Kim Houghton, chief economist at the Regional Australia Institute.

The lower unemployment figures indicate a positive outcome for regions, which have experienced  “stubbornly high” unemployment rates, like New South Wales and Victoria, said Houghton. 

However, for many inland locations with unemployment rates under 2%, this can prove “chronically low” as employers are left without a pool of people they can hire from, he said.

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With the unemployment figure below 3.8%, regional Australia has already hit the national target of an unemployment rate below 4%, which was announced by Australian Prime Minister Scott Morrison earlier this month.