Australia’s workforce is adapting, growing and creating new opportunities in the face of economic, technological and demographic change, according to the new Jobs and Skills Report.
Released today at the launch of the first Jobs and Skills Month, the report paints an encouraging picture of a labour market that has remained resilient through a period of significant transformation, with strong workforce participation, sustained employment growth and growing demand for higher-level skills across the economy.
These findings are among those highlighted in Pathways to Success – Jobs and Skills Report 2026, released by Jobs and Skills Australia (JSA) today as part of a detailed look at Australia’s current and future workforce landscape.
The report sets out opportunities to continue boosting Australia’s productivity, encouraging inclusive participation and reinforcing our resilience in a fast-changing world, including:
- The future workforce will be more highly skilled, with around 93 per cent of projected employment growth expected to occur in occupations requiring post-school qualifications;
- Artificial Intelligence (AI) is rapidly becoming mainstream among working-age Australians, with almost one in two Australians using AI tools as part of their daily lives;
- The report also found AI adoption is stronger by larger businesses, at 70 per cent compared to 31 per cent in smaller businesses, and stronger in metropolitan areas than Australia’s regions;
- To date AI’s impact in the labour market confirms JSA’s Capacity Study finding, that AI is more likely to augment than automate;
- AI adoption is spreading across the economy, with business and mining the highest adopters followed by health and education, retail and manufacturing; and
- A more connected jobs and skills system is helping to improve workforce planning, bringing together governments, employers, training providers and workers to better respond to labour market needs.
As the skills and capabilities Australians need to complete their jobs continue to change, greater emphasis and investment in lifelong learning will ensure the development and effective utilisation of skills over a person’s working life.
These findings highlight the importance of access to capital, digital infrastructure and workforce capability in the ability to adopt AI and benefit from technological change, as well as broader needs to invest in training opportunities for Australians.
There are of course challenges, as Australia continues to require additional workers in skilled trades, health care and other priority sectors to support housing delivery, infrastructure projects and the care economy.
The Albanese Labor Government has made significant investments in Australia’s VET system since coming to office, including in Free TAFE, a redesigned Skills for Education and Employment (SEE) program for expanding foundation skills, and the landmark $30 billion National Skills Agreement with states and territories.
The Jobs and Skills Report 2026 is now available on the Jobs and Skills Australia website.
Quotes attributable to Minister for Skills and Training, Andrew Giles:
“This report is a reminder that Australia’s greatest strength is its people and the work we are doing is turning the dial on prosperity for all.
“Thanks to investment in through the National Skills Agreement, Free TAFE and the SEE program, more Australians are gaining the training and qualifications they need to succeed.
“This critical work will be boosted by Jobs and Skills Month: connecting people to pathways.
“We’re building a more connected jobs and skills system that is helping Australians gain the skills they need and employers find the workers they rely on.”
Quotes attributable to Minister for Employment and Workplace Relations, Amanda Rishworth:
“The 2026 Jobs and Skills Report highlights the remarkable resilience of Australia’s labour market, with participation remaining at near record highs and outperforming all other advanced major economies.”
“Our future workforce needs to be adaptable as we see strong growth in the care and renewable energy sectors.”
“The past 30 years have seen unparalleled growth in the rates of participation of women in the job market and pleasingly, we are seeing the growing role of women in meeting workforce demand in sectors like construction and energy as female apprenticeship commencements and completions grow.”
