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For the first time in five years, software engineers are no longer in short supply in Australia. New data from Jobs and Skills Australia (JSA) reveals that nationwide skill shortages are easing across most professions, marking a significant shift in the labor market landscape.
The Jobs and Skills Australia (JSA) Occupational Shortage List 2025 shows that just under a third of all roles are in national shortage—293 out of 1,022 listed occupations. This represents a decrease from 36 percent in 2023 and 33 percent in 2024. According to the report, 29 jobs are newly in shortage, while 69 have moved off the list compared to last year.
The Tech Skills Gap Eases
The data indicates that the tech talent gap may finally be narrowing, with several IT roles no longer listed as being in shortage. Most notably, the role of software engineer, which has been in shortage every year since the JSA study began in 2021, is now adequately filled across all states and territories in Australia.
Other technology roles that are no longer in shortage include developer programmer, ICT quality assurance engineer, and penetration tester. However, several cybersecurity-related roles remain in shortage. Cybersecurity governance, risk and compliance specialists are now in shortage everywhere except the Northern Territory, after previously being short only in New South Wales and Victoria last year.
Cybersecurity engineers and cybersecurity operations coordinators continue to be in shortage nationwide, as are software testers. JSA began consultations mid-last year on whether to add a range of cybersecurity-related jobs to the skilled migration visa list. It is estimated that 85,000 dedicated cybersecurity roles will need to be filled by 2030 to meet the evolving demands of the sector, with just over 125,000 people employed in the sector as of last year.
Why the Shortages Exist
JSA identified the main causes of ongoing shortages as insufficiently qualified applicants, gaps in employability skills and experience, and low pay or poor working conditions in some industries. The majority of roles no longer in shortage come from the ‘professionals’ group, particularly in business, finance, engineering, and ICT roles.
“The results for these roles are consistent with various sectors in the labor market that are integrating artificial intelligence technology,” the JSA report said. “The finance and technology sectors, especially, have progressed more in digital skills development, including generative AI tools, with emphasis on ensuring workers can effectively operate in AI-augmented roles.”
According to the JSA data, nearly half of all trade roles, and two in five ‘professional’ occupations are now in shortage, primarily in health, education, and construction. The data also shows that roles with greater gender balance or stronger representation of women, older workers, First Nations people, and people with disabilities are far less likely to face shortages than male-dominated trades.
Implications and Future Outlook
The easing of shortages in the tech sector, particularly for software engineers, could have significant implications for Australia’s digital economy. As the demand for tech talent stabilizes, companies may find it easier to innovate and expand their operations without the constraints of a limited talent pool.
However, the persistent shortage in cybersecurity roles highlights a critical area that requires immediate attention. With the increasing frequency and sophistication of cyber threats, the need for skilled cybersecurity professionals is more urgent than ever. Addressing this shortage will be crucial for safeguarding Australia’s digital infrastructure.
Looking ahead, the focus will likely shift towards enhancing training and development programs to bridge the skills gap in sectors still experiencing shortages. Policymakers and industry leaders may need to collaborate on initiatives that promote skill development and improve working conditions to attract more talent to these critical areas.
As Australia continues to navigate the complexities of its labor market, the insights from the JSA report will be invaluable for shaping strategies that ensure a balanced and robust workforce capable of meeting the nation’s evolving needs.
