Australian Labour Shortage: How Regional Manufacturing Companies Attract a Blue-Collar Workforce

Australiaโ€™s current unemployment rate is 4.0 percent as of May 2024, yet many industries โ€“ including the manufacturing industry โ€“ are struggling to find staff.

According to the governmentโ€™s Skills Priority List, machinery operators and drivers are some of the most sought-after employees in Australia, representing the need for migrants to help ease Australian labour shortage. 

To combat this, the federal government has announced changes to migrant caps with a particular focus on regional areas. On a state level, some governments are providing financial incentives to encourage the urban workforce to move to regional areas. Yet, even when employees are willing to move, individuals are struggling to find accommodation.

Construction Australian labour shortage

Key Takeaways

  • Australia’s manufacturing sector is grappling with a labor shortage, despite a low 4.0% unemployment rate.

  • Government actions include raising migration caps and offering financial incentives to move workers to regional areas.

  • Visas like the 491 and 494 are aimed at attracting skilled workers to regional areas, offering residency and work opportunities.


  • Workforce Australia provides crucial support for job seekers and employers in regional areas through its app and website.

  • Dayjob Recruitment plays a key role in connecting skilled migrants with regional manufacturing companies in need of workers.

Increasing the Workforce in Australia: Addressing the Australian Labour Shortage

The federal government has recently taken steps to help regional areas attract skilled workers.

At the Jobs and Skills Summit held in September 2022, the Labor government announced a 35,000-person increase to the migration cap, lifting it from 160,000 to 195,000 for the 2022-23 fiscal year. This move aims to address widespread workforce shortages across various sectors including many trade jobs in Australia. Prime Minister Anthony Albanese emphasized the need for both an increase in migration intakes and a focus on the make-up of the migration system to ensure it meets Australia’s long-term needs.

Permanent Migration

To support this initiative, the Labor government has outlined plans to promote permanent migration for skilled visa holders through Workforce Australia online. This includes improving employment and workplace relations to help alleviate the Australian labour shortage. The increase in the migrant cap is particularly set to benefit regional areas, with a significant lift in the quota of regional visas.

Expedite Visa Processes

Additionally, the government has committed to an investment of $36.1 million to expedite visa processing and resolve backlogs, which has been a critical issue hindering the effectiveness of the migration system. These measures are part of a broader strategy to ensure that Australia’s immigration system supports nation-building and addresses immediate and future workforce needsโ€‹.

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The 491 Visa

491 visa

With the increasing emphasis on employment and workplace relations in regional areas, this visa serves as a bridge for skilled professionals. The Workforce Australia website and the Workforce Australia app are potential platforms where applicants might find relevant job search results, especially in the increasing demand for stone industry jobs in Australia. This aids their job search in regional Australia and for workers looking for their next job.

  • Duration: The Subclass 491 visa allows holders to stay in Australia for up to 5 years. During this time, visa holders can utilize platforms like the Workforce Australia app for job searches and updates on employment and workplace relations.

  • Cost: The primary application fee for the Subclass 491 visa is AUD 4,045. Additional charges include AUD 2,025 for each adult family member and AUD 1,010 for those under 18. If an adult family member has limited English proficiency, an extra fee of AUD 4,890, known as the second installment charge, may apply.

  • Processing Times: Processing times for the 491 visa can be checked using the visa processing time guide tool on the Services Australia website. This tool provides a general guide based on recently decided applicationsโ€‹.

Benefits

  • Stay in Australia for 5 years.

  • Live, work, and study in designated regional areas.

  • Travel to and from Australia multiple times while the visa is valid.

  • Eligibility to apply for permanent residence after 3 years from the time the visa is grantedโ€‹.

Eligibility

To be eligible for the Subclass 491 visa, applicants must:

  • Be nominated by a state or territory government agency or sponsored by an eligible relative.

  • Have an occupation listed on a relevant skilled occupation list.

  • Possess a suitable skills assessment for the chosen occupation.

  • Be invited to apply.

  • Satisfy the points testโ€‹โ€‹.

Additional Information

The Workforce Australia app and website are useful platforms for visa holders to search for jobs and stay informed about employment opportunities and workplace relations in regional Australiaโ€‹.

visa and passport

Subclass 494 Visa

The Subclass 494 Visa, also known as the Skilled Employer Sponsored Regional (Provisional) visa, is designed for skilled workers who are nominated by an employer in a designated regional area of Australia. This visa aims to address skill shortages and promote regional development by allowing skilled professionals to live and work in regional Australia.

  • Duration: The Subclass 494 visa allows holders to stay in Australia for up to 5 years. During this time, they can live, work, and study in designated regional areas. The visa also allows multiple entries and exits from Australia during its validity period.

  • Cost: The primary application fee for the Subclass 494 visa is AUD 4,045. Additional charges include AUD 2,025 for each adult family member and AUD 1,010 for each child under 18. If an adult family member has limited English proficiency, an additional fee of AUD 4,890 may apply.

  • Processing Times: Processing times for the 494 visa are variable and can be checked using the visa processing time guide tool provided on the Department of Home Affairs website. This tool provides estimated processing times based on recent applicationsโ€‹.

Benefits

  • Stay in Australia for 5 years.

  • Live, work, and study in designated regional areas.

  • Travel to and from Australia multiple times while the visa is valid.

  • Eligibility to apply for permanent residence after 3 years from the time the visa is granted.

  • Access to Medicare, Australia’s public health care system.

  • Flexibility to move between different regional areas.

Eligibility

To be eligible for the Subclass 494 visa, applicants must:

  • Be nominated by an approved Australian employer for a job in a designated regional area.

  • Have a relevant skills assessment for the nominated occupation.

  • Meet the English language proficiency requirements.

  • Satisfy the health and character requirements.

  • Have at least three years of relevant work experience in their nominated occupationโ€‹.

Pathway to Permanent Residency

After holding the Subclass 494 visa for three years, visa holders may be eligible to apply for the Permanent Residence (Skilled Regional) visa (subclass 191), provided they have met the following conditions:

  • Lived and worked in a designated regional area for at least three years.
  • Earned a minimum taxable income of AUD 53,900 per year for three consecutive yearsโ€‹.

migration

Subclass 186 Visa

The Subclass 186 Visa, also known as the Employer Nomination Scheme (ENS) visa, is designed for skilled workers nominated by their employers to live and work in Australia permanently. This visa aims to fill job vacancies that cannot be met by the local workforce and supports the employer’s need for skilled professionals.

Streams

The ENS visa has three streams:

1. Temporary Residence Transition (TRT) Stream

  • For applicants who have worked with their nominating employer for at least three years on a Temporary Skill Shortage (TSS) visa (subclass 482) or for two years on a 457 visa before 18 April 2017.

  • The occupation must be on the Medium and Long-term Strategic Skills List (MLTSSL).

  • Must meet age, English language, health, and character requirementsโ€‹.

2. Direct Entry (DE) Stream

  • For applicants who have not worked in Australia or have worked for a shorter period.

  • The occupation must be on the MLTSSL.

  • Requires a positive skills assessment and at least three years of relevant work experience.

  • Must meet age, English language, health, and character requirementsโ€‹.

3. Labour Agreement Stream

  • For applicants sponsored by an employer under a labour agreement.

  • The nomination and visa application must comply with the terms of the labour agreementโ€‹.

Eligibility Requirements

  • Age: Must be under 45 years old, with certain exemptions for high-income earners and specific roles such as academic or medical professionals in regional areasโ€‹.

  • English Language Proficiency: Must meet competent English requirements. This is waived for passport holders from certain English-speaking countries.

  • Skills and Experience: Requires a positive skills assessment and relevant work experience for the nominated occupation.

  • Health and Character: Must satisfy health and character criteria.

Cost

The application fee for the main applicant is AUD 4,240. Additional fees apply for family members and for those with limited English proficiencyโ€‹.

Benefits

  • Permanent residency in Australia.

  • Ability to include immediate family members in the application.

  • Access to Medicare.

  • Opportunity to apply for Australian citizenship when eligible.

  • Flexibility to work and study in Australia.

  • Ability to sponsor eligible relatives for permanent residenceโ€‹ (Hannan Tew Immigration Lawyers)โ€‹โ€‹ (Study in Australia)โ€‹โ€‹ (Australia Migrate)โ€‹.

Application Process

  1. Nomination by Employer: The employer must submit a nomination application and demonstrate the genuine need for the position.

  2. Visa Application: The applicant submits a visa application once the nomination is approved. Both applications can be lodged concurrently or within six months of the nomination approvalโ€‹ (Hannan Tew Immigration Lawyers)โ€‹โ€‹ (Study in Australia)โ€‹.

visa application

Subclass 187 Visa

The Subclass 187 Visa, also known as the Regional Sponsored Migration Scheme (RSMS) visa, is a permanent residency visa for skilled workers who are nominated by an employer in a designated regional area of Australia. It is designed to support regional development and address skill shortages in regional areasโ€‹.

Key Differences in Subclasses 186 and 187

Both Subclass 186 and 187 visas share key similarities in their processes; however, there are important differences that should be considered to ensure a smooth application process for Subclass 187. Refer to the table below to see the main distinctions between these two visas.

AspectSubclass 186 (ENS) VisaSubclass 187 (RSMS) Visa
Regional RequirementNo regional requirement; applicable Australia-wideMust be in a designated regional area of Australia
Streams AvailableTRT Stream, DE Stream, Labour Agreement StreamTRT Stream, DE Stream, Labour Agreement Stream
Nomination and SponsorshipNomination can be for any location in AustraliaNomination must be for a position in a designated regional area
Nomination Application RequirementsPosition must be genuine and meet market salary ratesPosition must be genuine, available for at least two years, and meet regional requirements
Processing TimesVaries; generally faster than 187 visa due to lack of regional verificationTypically longer due to regional verification; ranges from 11 to 19 months
Eligible OccupationsOccupation must be on the MLTSSLOccupation must be on the MLTSSL and meet regional criteria
Employer RequirementsEmployer must demonstrate a genuine need and ability to pay market salary ratesEmployer must demonstrate the position is in a regional area and necessary for regional development
Applicant RequirementsMust meet age, English language, health, and character requirementsSame as 186 but with additional regional context verification
Application ProcessNomination and visa application can be lodged concurrentlySame as 186, but with additional regional verification
Family InclusionImmediate family members can be includedImmediate family members can be included
Permanent Residency PathwayGrants permanent residency directlyGrants permanent residency directly
English Language RequirementCompetent English required; exemptions for certain passport holdersCompetent English required; exemptions for certain passport holders
Health and Character RequirementsMust meet standard Australian health and character requirementsMust meet standard Australian health and character requirements
CostAUD 4,240 for the primary applicant, additional fees for family members and those with limited English proficiencyโ€‹.AUD 4,045 for the primary applicant, additional fees for family members and those with limited English proficiencyโ€‹.

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Conclusion

In light of Australia’s current labour shortage, particularly in the manufacturing sector, the government’s initiatives to increase the migration cap and promote regional visas are commendable steps toward addressing the issue. The introduction of visas like the 491 and 494 not only provides a platform for skilled workers to find jobs in regional Australia but also offers employers a structured job plan to attract and retain talent.

With the free service provided by Workforce Australia, both employers and job seekers can navigate the employment landscape more efficiently. The emphasis on regional employment ensures that job seekers have a broader location range to choose from, enhancing their chances of finding suitable employment. Furthermore, the flexibility in work hours, as promoted by various job listings, ensures a balance between professional and personal life. While challenges persist, the combined efforts of the government and platforms like Workforce Australia are paving the way for a more robust and diverse workforce in the country.

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FAQs

What jobs are in shortage in Australia?

In Australia, several jobs are currently in shortage, including Civil Engineers, Plumbers, IT Security Specialists, Logistics and Supply Chain Managers, and Welders. These roles are highly sought after across various industries, reflecting the demand for skilled professionals to design, develop, manage, and ensure the smooth operation of essential servicesโ€‹โ€‹.

Which job is in high demand in Australia?

High-demand jobs in Australia span across fields such as healthcare, IT, engineering, and trades. Notably, Registered Nurses, Childcare Workers, Project Managers, Dentists, Hospitality Managers, Construction Managers, HVAC Mechanics/Technicians, Chefs, Human Resource Managers, and Aged and Disability Support Workers are among the most in-demand professions. These roles cater to a wide range of societal needs and industry requirements, from healthcare and hospitality to construction and HR managementโ€‹.

What is the hardest job to get in Australia?

While specific data on the “hardest” job to get in Australia wasn’t directly found, highly specialized roles requiring extensive education, experience, or certifications could be considered challenging to enter. Jobs like Financial Controllers, Senior Change Managers, Senior Analysts in Operational Risk, Cyber Security Engineers, and Strategy Analysts require a high level of expertise, making positions in these fields competitive and potentially hard to secure without the necessary qualifications and experienceโ€‹โ€‹.

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