By Natalie Apostolou

The most recent quarterly Labour Market Updates from Jobs and Skills Australia reveals persistent skills shortages in the regions, with medical, technology, and hospitality fields under intense pressure.

Business NSW Executive Director, Regional NSW, and The Visitor Economy, Paula Martin says one of the challenges with skills shortages is that educational institutions in the regions aren’t necessarily offering the courses needed to bridge gaps.  For example, not every regional education institution offers nursing and not every region offers aged care.

“We've got an inconsistency of educational pathways for our regional people, which drives them away from the region. So that's why continued investments need to be made into educational institutions by vocational and tertiary levels, to be able to continue to be that attractive destination for the populations to move there,” she notes.

Martin adds that education is one of the larger elements that need to be factored in when calling for a migration shift.  “Fundamentally you want to go and live somewhere that's got lots of opportunity for you, your kids, your parents, you want to offer opportunity. It's not just about lifestyle. It's not about slowing down. It's about being able to access education, medical care, aged care, retail, tourism experience, so it's a holistic view of regional city development.”

Earlier this year, the federal government set up a 12-month Skills Agreement for 180,000 fee-free TAFE and VET places. Regional and rural areas have experienced more than 48,000 enrolments since January 2023. And the federal government recently committed to regional education with $66.9 million to establish 20 further university study hubs across regional Australia. 

Research from the Regional Australia Institute (RAI) forecast that if regional Australians had a comparable share of bachelor-level qualifications as metropolitan residents, there would be 461,000 more graduates living and working in regional areas, collectively earning about $26 billion each year. With indicators suggesting a looming recession, businesses and regional industries such as farming and manufacturing cannot wait for a new crop of educated workers to hit the market.

Campaign aims to lure urbanites to the regions

The RAI has mounted a significant campaign to lure educated city dwellers to regional areas to fill the 91,000 jobs that are sitting vacant.

It says filling these vacant jobs would supply the economy with an instant economic boost of more than $1.2 billion.

“This year, regional migration is up 17% and it’s continuing to grow as the economic downturn prompts Australians to search for a more affordable lifestyle,” said RAI chief executive Liz Ritchie.

She cautions however that while demand for workers in regional areas is at an unprecedented high, these regions remain stifled by affordable and available housing, and need services to support population growth.

City workers keen to relocate

A study by the RAI found that nearly half of city workers would move to regional Australia if offered a better salary.

RAI research revealed that more than a million urban workers were dissatisfied with their jobs. More than half of Sydneysiders (54%) and Melbournians (53%) surveyed said their pay packet wasn’t enough to keep up with inflation, while 60% of workers in Brisbane said their salary wasn’t enough to keep up with the rising cost of living. Sydneysiders and younger Australians aged 18-34 were the most likely to move to a regional area, with 93% saying it’s something they would consider. 

Two in five unhappy workers claimed they’d shift to regional Australia for a financial incentive such as a recruitment bonus or relocation payment.

The RAI has aligned with industry bodies, large and small businesses, recruiters, and local governments in a national campaign to promote regional opportunities.  The ‘Move to More’ project was originally launched in 2019 but has now been amplified to meet demand for workers.

Martin adds that regional businesses are capable of growth and contributing to the economy, but are not being supported by what makes a great city tick, which is transport, housing, education, and entertainment.

“It's a great campaign to highlight to everyone that regional Australia needs to be taken seriously,” she says.