Labour market needs of metropolitan Melbourne (2023 to 2026)
The strong demand for workers in metropolitan Melbourne continues
For the first time, the number of new workers expected for metropolitan Melbourne is segmented into six sub-regions. Metropolitan Melbourne is expected to account for 78.6% of new workers (or 277,000) in Victoria by 2026. Relative to its share of current employment (77.9%), metropolitan Melbourne is expected to account for a slightly higher proportion of new workers.
Around two-thirds (65.3%) of new workers expected (or 180,500) will require higher-order skills.
The inner metropolitan (30.4%), southern metropolitan (16.6%), and eastern metropolitan (16.1%) regions will account for the highest proportion of new workers expected in metropolitan Melbourne over the next three years (Figure 2.5).
Figure 2.5: New workers expected across metropolitan Melbourne (2023 to 2026)
Across metropolitan Melbourne, health care and social assistance (60,700), education and training (39,300), and professional, scientific and technical services (31,600) expect the highest number of new workers by 2026 (Figure 2.6).
Figure 2.6: New workers expected in metropolitan Melbourne by industry (2023 to 2026)
These trends are broadly similar across most of the metropolitan regions, with health care and social assistance accounting for the highest proportion of new workers expected by 2026. The exception is inner metropolitan Melbourne, where professional, scientific and technical services had the highest proportion of new workers expected. In general, this is a relatively higher proportion of new workers expected in professional, scientific and technical services in the inner metropolitan regions due to businesses preferring locations with access to a broad and highly-skilled labour force and opportunities for business-to-business interactions. In contrast, the other metropolitan regions expect relatively higher proportions in construction, due to these businesses preferring lower value employment lands that are closer to their residential customer base, and manufacturing, due to cheaper industrial land for space and access to transport links for trade (Table B1 in Appendix B).
The occupational profile for new workers expected is also broadly similar across each of the metropolitan regions, with professionals being the most common occupation at the broad ANZSCO 1-digit level. This is particularly the case for the inner metropolitan regions, where there is an even higher proportion of professionals (around four in 10 new workers expected) compared to the other metropolitan regions (around three in 10). Further, non-inner metropolitan regions have a relatively higher proportion of machinery operators and drivers, particularly in the western metropolitan region (Table B2 in Appendix B).
At a more detailed occupational level, ageing and disability carers, general clerks, and registered nurses will be among the top five occupations in demand across all metropolitan regions.
Updated