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The 2023 SPL shows that 36% of occupations were in national shortage (332 out of 916),
about 5 percentage points higher than 2022 (31% of occupations)4. The rise in shortages in
2023 from 2022 reflects the cumulative impacts of recruitment challenges stemming from a
persistently tight labour market, which began tightening from late 2021.
Inputs (both quantitative and qualitative) used to determine the 2023 SPL ratings were
primarily, though not entirely, gathered during the 2022-23 financial year. Similar inputs used
to determine the 2022 SPL ratings were primarily gathered during the 2021-22 financial year.
As a result of this approach, the 2023 SPL inputs reflect a slightly tighter overall labour
market than was the case for the 2022 SPL inputs (where some of the COVID-19 influences
on the labour market, particularly in the first half of 2021-22, had a minor impact).
The cumulative effect of supply side constraints over the past 12 to 24 months that can lead
to backlogs in consumer demand, wait lists for services and the like. Unsurprisingly this
cumulative effect on the ability of businesses to deliver the goods and services that
consumers are demanding has been more readily observed, particularly in stakeholder
feedback, throughout the 2023 SPL assessments than was the case in 2022.
Taken together these two factors help to illustrate why the number of occupations assessed
as being in shortage in 2023 has increased (when compared to 2022). Data over more recent
months has suggested slight improvements in both fill rates and the number of applicants per
vacancy, suggesting that the period captured over the 2023 assessment period was
essentially a ‘peak’ in labour market tightness. The large rise in occupations in shortage from
2021 to 2022 (19% in 2021 compared to 31% in 2022), was due to the subdued labour
market conditions during the COVID-19 pandemic followed by labour market tightening post
lockdowns and easing restrictions.
Comparisons with the 2022 SPL show that there were 66 occupations newly in shortage in
2023; they were not in shortage in 2022. Most of the new shortages were concentrated
among high-skilled Professionals.5
There were also 266 occupations (or 29%) that were in shortage in both 2022 and 2023
SPLs. Among these 47% were Professionals occupations, mostly related to health,
engineering, information communication technology (ICT) and science roles. Another 33%
were Technician and Trades Workers occupations.6
Across all three SPLs published from 2021 to 2023, 138 occupations were in shortage each
year. For these occupations Professionals occupations made up 40% (55 out of 138), while
Technician and Trades Workers roles comprised 49% (67 out of 138).7
There were 8 occupations where the shortages were confined to regional areas only.8 Half of
these were Professionals occupations. Reflecting the unique labour market characteristics
that are observed in each state and territory, there were additional occupations in shortage
or regional shortage that were not the case at the national level.