Australia’s seasonally adjusted unemployment rate sits at 4.2% (August 2025), with participation at 66.8%. A decline in full-time roles signals a gradually softening market despite historically tight conditions. Meanwhile, the government’s Skills Priority List (OSL) shows machinery operators and drivers remain among the most sought-after workers, underscoring migration’s role in easing the labour gap.
To respond, the federal government has adjusted migrant caps with a sharper focus on regional placements, while several states offer incentives to encourage city workers to relocate. Yet even when candidates are willing to move, housing availability continues to be a major hurdle for regional employers and jobseekers. In this article, we outline what these trends mean for regional manufacturing and how businesses can attract, relocate, and retain blue-collar talent effectively.
Key Takeaways
- Australia’s unemployment rate is 4.2% (Aug 2025), but regional manufacturing still faces persistent skills gaps.
- The 2025–26 permanent Migration Program stays at 185,000, with a strong focus on skilled and regional pathways.
- Regional visas (491/494) continue to be core attraction tools, with PR through the 191 after 3 years (no set income minimum on the 191).
- Occupation Shortage List (OSL) (formerly Skills Priority List) identifies priority roles, guiding state nominations and employer strategy.
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.
Update (2025–26): The federal government has kept the permanent Migration Program at 185,000 places for 2025–26, with states and territories supporting a continued emphasis on skilled migration—critical for regional employers.
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.
New 482 (Skills in Demand) Visa — What Changed (Dec 2024)
Australia’s Skills in Demand (SID) visa (subclass 482) replaced the old TSS on 7 December 2024. It continues employer sponsorship for in-demand roles, with updated streams and indexed thresholds, and sits alongside 186 (ENS) PR and 494 → 191 regional PR pathways.
Key shifts (at a glance):
- TSS closed → all new employer-sponsored temporary hires use SID-482.
- Stream framework/thresholds refreshed and subject to regular indexation; always check current settings before nominating.
- Works in tandem with PR routes: transition options via 186 (nationwide) or 494 → 191 (regional).
Quick chooser (content matrix):
| Hiring need | Best starting visa | Typical PR path |
|---|---|---|
| Employer-sponsored, any location | SID-482 | 186 (ENS) |
| Employer-sponsored, regional role | 494 (Regional) | 191 PR after 3 years |
Tip: Cross-check occupation eligibility against the current lists (Home Affairs/JSA) before offering.
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 needs.
Working with Dayjob Recruitment
The 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 check Home Affairs’ Visa Processing Times tool for up-to-date medians by visa category. This tool provides a general guide based on recently decided applications.
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 the Permanent Residence (Skilled Regional) visa (subclass 191) after 3 years (note: there is no minimum income threshold for the 191 itself; applicants must still show evidence of taxable income and meet all 191 criteria).
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 test.
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 Australia.
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 applications.
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 the Permanent Residence (Skilled Regional) visa (subclass 191) after 3 years (note: there is no minimum income threshold for the 191 itself; applicants must still show evidence of taxable income and meet all 191 criteria).
- 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 occupation.
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 years.
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 Skills in Demand (SID) 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 requirements.
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 requirements.
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 agreement.
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 areas.
- 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 proficiency.
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 residence (Hannan Tew Immigration Lawyers) (Study in Australia) (Australia Migrate).
Application Process
- Nomination by Employer: The employer must submit a nomination application and demonstrate the genuine need for the position.
- 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 approval (Hannan Tew Immigration Lawyers) (Study in Australia).
Subclass 187 Visa (RSMS) — Closed to new applicants
Note: The RSMS (subclass 187) is closed to new applications. The Direct Entry stream closed on 15–16 Nov 2019, with only limited transitional cases remaining for previously lodged nominations/holders. New regional employer sponsorship is now via the subclass 494 (Skilled Employer Sponsored Regional – Provisional).
What to do instead (current pathways):
- Need employer-sponsored talent in the regions? Use subclass 494; after 3 years, eligible holders can transition to permanent residency via subclass 191 (no set minimum income on the 191 page; ATO notices required).
- Hiring outside designated regional areas or for permanent roles? Consider subclass 186 (ENS) if the role and candidate meet criteria (Use Home Affairs processing-time guidance). Reference SID-482 as the live temporary employer-sponsored route that sits alongside 186 (and 494 for regional)
- For temporary skilled roles nationwide: use the Skills in Demand (SID) visa – Skills in Demand (SID) visa (subclass 482), which replaced the old TSS on 7 Dec 2024.
Bottom line: Treat 187 as a legacy visa. Build your strategy around 494 → 191 for regional hires and 186/SID-482 where appropriate.
Are you a job seeker looking for your next big opportunity? Click below to see how we can assist you in finding the perfect role.
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.
Dayob recruitment has qualified and accredited staff willing to move interstate to regional areas. Reach out to find the candidate best
suited for your company. Contact us today!
Is your company ready to find the right talent?
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 services.
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 management.
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 experience.
Interested in how we can support your role as an employer? Click below to learn more.
