“On the back of devastating data showing inflation running rampant across the economy, new data shows that critical jobs are not being filled despite a record migration surge” said Saxon Davidson, Research Fellow at the Institute of Public Affairs.
Today, new Job Vacancies data from the Australian Bureau of Statistics for the month of August 2026 revealed that 325,000 jobs remain unfilled, decreasing by only 0.9 per cent from May 2026. The data also revealed:
- Job vacancies have been at or over 325,000 for more than five years and are currently 79 per cent higher than the pre-pandemic average of 181,200.
- 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 82 per cent above pre-pandemic levels, at 22,200 job vacancies.
- Worker shortages in the construction sector are 20.5 per cent above pre-pandemic levels, at 20,000 job vacancies.
Chart: Job vacancy time series (Source: Australian Bureau of Statistics)
“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.
- Worker shortages in all states and territories except the ACT are higher than pre-pandemic levels.
- The Northern Territory’s worker shortage levels are double what they were before the pandemic.
- Queensland’s worker shortage levels are 81 per cent above pre-pandemic levels.
- South Australia’s worker shortage levels are 70 per cent above pre-pandemic levels.
- Tasmania’s worker shortage levels are 59 per cent above pre pandemic levels.
- Western Australia’s worker shortage levels are 48 per cent above pre-pandemic levels.
- Victoria’s worker shortage levels are 30 per cent above pre-pandemic levels.
- New South Wales’ worker shortage levels are 22 per cent above pre-pandemic levels.
- The ACT’s worker shortage levels are 8 per cent lower than 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.
“Less than half of the migrants who enter Australia on the skilled visa program are actually skilled, removing any possibility that the Albanese government’s mass migration program is actually designed to make a tangible difference to Australia’s debilitating worker shortage crisis.”
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 65 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 75 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 simply for working. This is why a quarter of pensioners work in New Zealand, compared to just three per cent in Australia.
“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 continuing 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.
