Australia’s Job Market Poised for Significant Transformation Driven by Healthcare and Social Assistance
Australia’s employment landscape is on the cusp of a profound transformation, with the healthcare and social assistance sector set to emerge as the dominant force, projected to encompass over one-fifth of all jobs nationwide by 2035. This significant shift is detailed in the comprehensive 2025 Jobs and Skills Report, a forward-looking analysis by Jobs and Skills Australia (JSA) in partnership with Victoria University.
The report, meticulously crafted using extensive economic and demographic data, paints a picture of substantial employment growth across the nation. Over the next five years, leading up to May 2030, Australia’s workforce is expected to expand by 6.5%, translating to approximately 961,000 new positions. Looking further ahead, the growth trajectory extends over a full decade, with total employment anticipated to rise by 13.3% by May 2035, adding nearly two million individuals to the employed population.
Healthcare and Social Assistance: The Engine of Growth
Leading this surge in employment is the healthcare and social assistance industry. This sector is not only expected to generate the largest number of new roles but also to significantly increase its overall share of the national job market. Projections indicate its contribution to total employment will climb from 16.1% in 2025 to an impressive 17.5% by 2035. This represents the most pronounced expansion of any industry. Over the coming decade, this vital sector is poised to create an estimated 541,900 new job opportunities.
Key Industries Driving Employment Expansion
The report identifies several key industries that will contribute significantly to Australia’s job growth in the coming decade.
- Healthcare and Social Assistance: This sector is set to be the primary driver of new jobs, with a projected employment growth rate of 22.9% and an addition of 541,900 employed persons.
- Professional, Scientific and Technical Services: Following healthcare, this industry is anticipated to experience robust growth, adding 250,100 new jobs, representing a 10.1% increase.
- Construction: The construction sector is also expected to see considerable expansion, with an 11.9% growth rate and an estimated 160,900 new jobs.
- Education and Training: This essential sector is projected to grow by 12.4%, contributing 157,700 new positions to the workforce.
- Retail Trade: While its share of total employment may see a slight decrease, the retail trade sector will remain a substantial employer, expected to add 93,100 jobs, reflecting a 6.9% growth rate.
The Rise of Highly Skilled Professionals
This pronounced shift towards specialized, service-based fields is directly fueling an escalating demand for highly skilled professionals. The JSA report forecasts that all major occupation groups will see an increase in employment over the next decade. However, the most substantial growth is expected to be concentrated within the professional category, which is projected to absorb nearly 850,000 new positions.
Within this broad professional group, specific occupations are highlighted for their significant projected employment share by 2035. The top three are anticipated to be:
- Registered Nurses: These frontline healthcare professionals will continue to be in high demand.
- Accountants: Essential for financial management across all sectors.
- Software and Application Programmers: Crucial for the ongoing digital transformation of industries.
Educational Attainment: A Growing Imperative
The increasing demand for highly skilled professionals underscores the escalating importance of higher education. The JSA report projects that a significant majority of all new jobs created – specifically 54.3% – will necessitate a bachelor’s degree or a higher qualification. This finding is further reinforced by recent data from the 2024 Graduate Outcomes Survey (GOS). This survey indicates that international students pursuing studies in healthcare-related fields are currently achieving the highest success rates in securing employment in Australia, at both undergraduate and postgraduate levels.
Geographic Distribution of Job Growth
Job growth is not confined to specific regions; indeed, every state and territory across Australia is forecast to experience an increase in employment opportunities. However, Victoria is anticipated to lead the nation in this expansion, with a projected growth of 15.3% and the addition of nearly 580,000 new jobs by 2035. New South Wales is set to follow closely, with an estimated 576,800 new jobs. Queensland and Western Australia are also predicted to witness robust employment growth, with projected increases of 13.3% and 13.6%, respectively.
