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Skills in demand for 2023
Knowing what skills will be in highest demand for the year ahead can help employers and employees alike prepare. For business leaders, advanced knowledge of the skills that will be in short supply can help you design strategies for attraction and retention and inform internal training efforts to ensure teams can be upskilled appropriately. For employees, this list can help guide future career ambitions and learning plans.
We update this list yearly in line with the latest recruitment trends to ensure you can navigate the market changes to remain competitive – whether you’re looking for a new job opportunity or to increase your workforce.
The factors driving demand
In 2022 we experienced the tightest labour market we’ve seen in over 40 years of recruiting in this region, and, at time of writing, unemployment rates remain at their lowest levels since the 1970s.
With borders open, increased skilled migrant quotas and streamlined Australian skilled migration program processes, we are seeing the shortages easing in some industries, but it will be some time yet before this is felt more broadly.
While it remains to be seen how the markets might react to the current economic volatility, the RBA is predicted to continue to increase rates over 2023 to address high inflation. A slowing of the economy in the context of continued skills shortages could prompt more people searching for new roles with higher salaries to maintain their current lifestyle or drive the opposite behaviour with workers wanting to stay put in fear of a recession.
Top five skills in demand
We’ve examined job market trends across the 27 industries and sectors we recruit within. Below are the top five most in-demand skills that companies need nationally. These are the skills that are in strongest demand relative to supply. We’ve focused on job titles to reveal the exact hard or technical skills at the top of the supply and demand imbalance. If you’re interested in the top soft skills in demand, we have also complied the seven job ready soft skills you need today.
1. Project Managers
Project Managers are in high demand across almost every industry. The reasons differ across sectors, but in large, this shortage continues as a direct reflection of the increasing volume and complexity of projects being undertaken by organisations. As businesses continue to roll out projects to capitalise on economic opportunities, adapt to changes in the regulatory environment, and embed agility or new technology into their operations, Project Managers lead the change and transformation program and guide a project’s output.
2. Early Childhood Teachers
There continues to be an acute shortage of Early Childhood Educators, which hasn’t changed since our last analysis of skills in demand. A shortage of qualified graduates and skilled migrants alongside increased accessibility of early childhood care through government initiatives and workers returning to the office has squeezed the industry. Some centres are reporting such significant staff shortages that they are closing their books to new clients or reducing hours of operation.
From Civil to Electrical and Grid – in engineering, you name it, it’s in short supply and in high demand. With both federal and state governments continuing to focus on infrastructure building hiring demand is high right across the nation. While engineering skills have been earmarked to increase on the skilled migration list, it can be incredibly difficult for overseas-trained Engineers to get their licence accredited in Australia. This slows the transition of the skills into the Australian market. A continued focus on decarbonisation and energy supply transformation projects, means that these skills will continue to be in high demand, in particular we’re seeing a call out for Transmission and Power System Engineers, especially in the country’s more rural regions.
4. Cyber Security
As data breaches and cyber hacks dominate headlines – cyber security is dominating the agenda in many boardrooms. This boom in the sector means that the skills needed have not yet caught up with the demand. Cyber Security experts are needed across the Public Sector, as well as in Finance and any industry where data protection is of immense importance. Penetration Testers are one of the key skills in specific demand as they enable the examination of IT infrastructure for any vulnerabilities.
5. Office Support
As more workers return to office buildings, we are seeing demand for Office Support roles pick up again. Receptionists, Office Managers, Personal and Executive Assistants are in high demand, with salaries also increasing across these roles.
Other skills in demand
Civil Project Engineers
Within Civil Construction, recruitment activity is high for Project Engineers with a Civil Engineering degree and previous experience as an Engineer in the construction of projects to the required specifications. Hiring demand for these skills is increasing across the country – especially for those with public sector and subdivision experience.
With organisations now particularly focused on budgeting and forecasting to remain agile in the current market, Business Analysts in high demand, especially in the tech industry. A Business Analyst has key responsibilities such as being able to analyse and monitor data and then use it to make informed decisions regarding business processes and where an organisation can improve.
Service Desk Analyst
Service Desk Analysts are a constant when it comes to in-demand jobs, as professionals are needed to be able to respond to a range of IT support requests, as well as running maintenance on workplace systems. As all business’ technological requirements continue to increase, the need for Service Desk Analysts will continue to grow.
Payroll is an area of continuous and extreme demand. While recruitment demand for many accountancy and finance skills fluctuates based on seasonal trends, payroll officers are required all year. When they recruit, employers look for Payroll Officers with relevant systems knowledge and experience working on implementations or improvements. They also look for proven experience working with a similar volume of employees, and an understanding of the relevant industry awards.
The legal sector is incredibly skill short currently and one of the most in demand occupations. There is an existing scarcity of lawyers with some post-qualification experience as they turn to inhouse, technology and consulting roles however the shortage has been further exacerbated by many heading overseas after years of being shut in Australia. Demand is strong for Lawyers of varying experience levels in most practice areas with Corporate Commercial Lawyers in particular demand. The focus on infrastructure means Construction and Infrastructure Lawyers are also needed.
Industrial Development Managers
With online retail continuing to drive the need for distribution centres and warehouses, and commercial property development continuing to drive strong growth, Industrial Development Managers will be in high demand.
Even with borders open, it will take a significant amount of time for the number of migrants taking up General Labourer jobs to increase, which means they will continue to be in short supply. There’s also a shortage of Electricians and Plumbers who have experience working on construction sites. In a market that has never been busier, employers are looking for reliable workers to fill the gaps.
Contact Centre Workers
Experienced Customer Service Representatives in Contact Centres are still highly sought after. Often being the first point of contact between an organisation and its customer, they are integral in building customer retention through dealing with queries effectively and with great communication skills.
Boilermakers, Fabricators and Welders
Boilermakers, Fabricators and Welders are needed in response to a shortage of candidates locally. Traditionally, international contractors helped meet staffing demand, but, as with all in-demand roles, it will take time for this skills shortage to ease. Ideally, employers require a candidate with a Certificate III in Engineering (fabrication trade), post apprenticeship experience and the ability to perform MIG and TIG fabrication.
Civil Designers with experience in structural and hydraulics engineering or residential subdivisions are continuing to experience high recruitment demand. Organisations require talent with experience using relevant software packages, especially Civil 3D and 12D, ideally coupled with a Bachelor of Engineering.
Demand is high for Forklift Operators to move bulk materials and goods in the warehouse and logistics sector. Ongoing labour shortages will keep job opportunities high for the foreseeable future.
Ticketed Crane Operators
Manufacturing and distribution companies face a shortage of trained, ticketed and skilled Crane Operators with a truck license. Candidates with these skills are essential to load and unload stock for delivery.
Accounts Receivable professionals are required to ensure all debtors ledgers are reduced. Strong communications skills and a drive to achieve KPIs are essential.
Recruitment demand has increased for technical Facilities Managers with an engineering or trade qualification in addition to a thorough understanding of mechanical and electrical services to reduce contractor spend. Jobs for Facilities Managers are becoming more strategic, with professionals called upon to navigate challenges and change constantly.
A shortage of experienced, licenced Truck Drivers exists nationally, from medium rigid licence through to heavy combination. Truck Drivers are sought for a range of roles, including multi-drop deliveries and longer haul. An exemplary driving history and reliability are essential.
Advice for employers
The skills shortage will start to ease, but it’s going to be a gradual process that will take time. So consider these actions.
- Your Employee Value Proposition (EVP) is one of your greatest tools in attraction and retaining the talent you need. Employee’s priorities have changed, with flexibility now the number one priority for workers in Australia, with compensation, security and work life balance rounding out the top five. Show up to the table with a value proposition that can be tailored to an individual’s needs and wants to gain the advantage.
- With flexible working being a big draw card, businesses should consider their spaces and their processes to ensure teams can work effectively in this new environment. Additionally, leaders need to be upskilled in managing and leading teams effectively in a flexible working environment.
- When resources are tight, consider where the best place is to direct those resources. Rather than chasing market share or new clients, now might be the time to double your focus on your most important clients or customers and ensure they are being properly serviced.
- Embed everyday learning. In a global report, upskilling was the fourth most important priority for employees. Businesses constantly need new skills, and employees are looking for career progression pathways. By offering an effective and measurable learning and development plan organisations can plan for the capabilities they need while delivering a potent retention strategy when further coupled with a transparent progression pathway. Employees who moved internally are 76 per cent more likely to stay with their current employer after two years.
Advice for employees
While there is still a skills shortage happening, it is starting to ease, and the economic headwinds are starting to feel blustery. If you’re thinking about your career trajectory, consider:
- What are your long-term career ambitions? While making quick moves to take advantage of higher remuneration can be tempting, consider if the move will help you achieve what you want. Before making any big moves, take a step back and reflect on your long-term goals and how this move could help or hinder your ability to achieve them.
- Improving your capabilities and what you can offer employers will help you stay on top of the CV pile. Work is changing at an increasingly rapid pace, so keep your technical skills sharp by adopting a continuous learning attitude and actively seek out skills to add to your repertoire.
- Don’t forget your soft skill development. When the market is tight, employers are accepting of the fact that they may need to do some on-the-job training if a potential employee demonstrates strength in their soft skills.
- There may be plenty of opportunity out there or you may have been attending interview after interview but try to not get complacent. Do the prep work before each interview, make sure you show up with your best foot forward and be an enthusiastic participant in the journey. Everyone, including you, values their time, don’t waste it.