Summary of the Australian Labour Market Update for Migrants – July 2025

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Key Findings at a Glance

  1. Strong employment growth continues, with unemployment at 3.8% (down from 4.2% in 2024)
  2. Migrant workers fill critical gaps in healthcare, construction, and technology
  3. Regional areas show strongest demand for skilled migrants
  4. Wage growth stabilises at 4.1% annually
  5. New visa pathways prove effective in addressing skills shortages

Labour Market Overview

Australia’s labour market remains tight in July 2025, with job vacancies still elevated at 1.8 vacancies per unemployed person. The participation rate holds steady at 66.7%, slightly above pre-pandemic levels.

Migrant workers account for:

  • 28% of total employment growth in past year
  • 65% of new healthcare workers
  • 42% of construction workforce
  • 38% of IT professionals

Top Industries Hiring Migrants

  1. Healthcare & Social Assistance (42,000 vacancies)
    • Critical needs: Aged care nurses, GPs, disability support workers
    • Median wage: $85,000
  2. Construction (31,500 vacancies)
    • Critical needs: Civil engineers, electricians, project managers
    • Median wage: $92,000
  3. Professional Services (28,200 vacancies)
    • Critical needs: Software developers, data scientists, accountants
    • Median wage: $105,000
  4. Accommodation & Food Services (24,700 vacancies)
    • Critical needs: Chefs, restaurant managers
    • Median wage: $62,000

Regional vs Metropolitan Trends

Regional areas show stronger demand:

  • 58% of job vacancies are outside major cities
  • Fastest growing regions:
    1. Sunshine Coast (QLD)
    2. Geelong (VIC)
    3. Newcastle (NSW)
    4. Greater Hobart (TAS)

Top regional occupations:

  • Registered Nurses
  • Electricians
  • Agricultural Technicians
  • Early Childhood Educators

Regional vs Metropolitan Trends

The new Skills in Demand visa (introduced 2024) accounts for:

  • 32% of permanent skilled migration
  • 45% of regional migration

Processing times have improved:

  • Temporary Skill Shortage visa: 42 days (down from 68 days in 2024)
  • Employer Nomination Scheme: 85 days (down from 112 days)

Wage & Conditions Analysis

Migrant workers earn:

  • 7% less than Australian-born workers on average
  • But this gap narrows to 2% after 5 years residence

Best paying sectors for migrants:

  1. Mining ($125,000 median)
  2. Financial Services ($110,000)
  3. Professional Services ($105,000)

Challenges Identified

  1. Underemployment remains at 6.4% for recent migrants
  2. Recognition of overseas qualifications still causes delays

Policy Recommendations

  1. Expand the Overseas Skills Recognition Program
  2. Increase funding for migrant settlement services
  3. Develop regional infrastructure plans to support migrant workers
  4. Strengthen anti-exploitation measures in temporary visa programs

Future Outlook

Labour shortages expected to persist in:

  • Healthcare (particularly aged care)
  • Renewable energy sectors
  • Advanced manufacturing

The report concludes that migrants will continue playing a vital role in Australia’s labour market, with skilled migration remaining essential for economic growth.

References: https://www.jobsandskills.gov.au/publications/australian-labour-market-migrants-july-2025

Australian Labour Market for Migrants – July 2025 | Jobs and Skills Australia