“The Albanese government’s approach of using mass migration to address Australia’s worker shortage crisis has not only failed but is surely one of the worst cases of economic vandalism any federal government has presided over,” said Saxon Davidson, Research Fellow at the Institute of Public Affairs.
Today, the latest Australian Bureau of Statistics’ job vacancy data reveals that 326,700 jobs remain unfilled, and worker shortages are 44 per cent higher than before the start of the pandemic. The data also showed:
- Job vacancies have been over 325,000 for four and a half years straight and only decreased by 0.2 per cent between August and November 2025, to 326,700.
- The continued elevated level of worker shortages in the construction and manufacturing sectors is damaging the push to build more homes during the current housing shortage. Worker shortages in the manufacturing sector are 61 per cent above pre-pandemic levels, at 19,700 job vacancies.
- Worker shortages in the construction sector are 9 per cent above pre-pandemic levels, at 18,100 job vacancies.
- Worker shortages in all states and territories are higher than pre-pandemic levels. Queensland’s worker shortage levels are 83 per cent above pre-pandemic levels.
- The Northern Territory’s worker shortage levels are 79 per cent above pre-pandemic levels.
- South Australia’s worker shortage levels are 75 per cent above pre-pandemic levels.
“For more than three years, the Albanese government has used Australia’s worker shortage crisis to justify its record, out-of-control migration intake. Today’s data again reinforces that this approach has failed,” Mr Davidson said.
“Instead, this approach has exacerbated our housing shortage, become a primary cause of our prolonged per capita recession, and has damaged social cohesion – and Australian businesses still cannot find the workers they need.”
One key barrier to solving the worker shortage crisis is the fact that Australian pensioners and veterans still face an effective marginal tax rate of 66 per cent should they earn over $226 per week.
This occurs as a 50 per cent claw back is applied to their pension for every dollar earnt over $226, with normal tax rates on top. Similarly, students face an effective marginal tax rate of 76 per cent should they earn over $288 a week. It is locking these Australians out of work.
In New Zealand, pensioners who choose to work pay tax on their combined pension and income at a tax rate as low as 10.5 per cent, and their pension is not reduced for simply working. This is why a quarter of pensioners work in New Zealand, compared to just three per cent in Australia.
“IPA research has identified that the key reason why New Zealand did not have a worker shortage crisis during and following the pandemic is because its workers were not locked out of employment due to the tax and red tape barriers Australians face,” Mr Davidson said.
“If the federal government adopted the New Zealand model for our pensioners, veterans, and students, Australia could see 520,000 extra workers enter the labour force.”
“Rather than continue to rely on the lazy policy option of out-of-control migration, the federal government must implement genuine reforms to fix worker shortages by removing unfair barriers to employment that prevent willing Australians from working,” Mr Davidson said.
To download the IPA’s previous research click here.
