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2.1 The health care and social assistance and construction industries will drive workforce growth

Over the next three years, around 392,000 new workers are expected to enter the Victorian labour market.4 This includes 168,000 workers in new jobs and 224,000 workers to replace retiring workers.5 These new workers will be in addition to the 3.7 million workers already in Victoria.6

Around 315,000 new workers are expected in metropolitan Melbourne and 77,000 in regional Victoria over the next three years. The State of the Victorian Labour Market Report and Employment Projections Dashboard, which accompany this Skills Plan, contain more detailed analysis of employment trends.

The health care and social assistance industry employs the most workers in Victoria and is expected to account for 86,500 new workers, almost a quarter of new worker growth over 2024-27.

Construction is the next highest growth industry, with 68,600 new workers. This accounts for more than one in six new workers, well above its share of current employment, and represents a notable increase in its relative importance within the job market.

Over the next 10 years, 1,421,000 new workers are expected to enter the Victorian labour market. Workers in construction and related industries will remain in high demand to deliver the government’s housing and broader infrastructure agenda. The Best Start, Best Life reforms will also support workforce growth across the health care and social assistance and education and training industries.

Some of the largest growing occupations in the next ten years include ageing and disability carers, construction managers, and carpenters and joiners.

The demand for new workers can be met through education and training (with the Victorian TAFE Network leading the way), investment in training by employers, strategic use of overseas migration and supporting more people into work.

Health care and social assistance and construction are expected to be the highest growth industries over the next three to 10 years3

Figure 1

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New workers expected by industry and occupations most in demand, 2024 to 2027

Across the 19 industries, around 392,000 new workers are expected to enter the Victorian labour market over the next three years.

IndustryEmployment in 2024New workers in 2024-27Occupations in demand
Health care and social assistance574,50086,500

Ageing and disability carers

Registered nurses

Receptionists

Nursing support and personal care workers

Child carers/early childhood educators

Construction367,20068,600

Construction managers

Carpenters and joiners

Electricians

Plumbers

Building and plumbing labourers

Professional, scientific and technical services375,30042,600

Software and applications programmers

Accountants

ICT managers

Civil engineering professionals

Solicitors

Education and training306,00031,900

Primary school teachers

Secondary school teachers

Education aides

Private tutors and teachers

University lecturers and tutors

Retail trade362,50023,000

Sales assistants (general)

Retail managers

Storepersons

Motor vehicle and vehicle parts salespersons

Checkout operators and office cashiers

Transport, postal and warehousing191,00022,300

Truck drivers

Automobile drivers

Storepersons

Delivery drivers

Forklift drivers

Public administration and safety181,90017,500

Security officers and guards

Police

General clerks

Other information and organisation professionals

Inspectors and regulatory officers

Manufacturing260,20017,200

Production managers

Cabinetmakers

Product assemblers

Structural steel and welding trades workers

Packers

Accommodation and food services231,30016,300

Sales assistants (general)

Waiters

Chefs

Kitchenhands

Cafe and restaurant managers

Financial and insurance services159,60014,900

Financial investment advisers and managers

Financial brokers

Bank workers

Credit and loans officers

Software and applications programmers

Administrative and support services112,40010,100

Commercial cleaners

Domestic cleaners

Human resource professionals

Gardeners

General clerks

Agriculture, forestry and fishing81,0007,500

Livestock farmers

Crop farmers

Mixed crop and livestock farmers

Crop farm workers

Livestock farm workers

Other services131,0007,400

Hairdressers

Motor mechanics

Ministers of religion

Beauty therapists

General clerks

Rental, hiring and real estate services60,0006,900

General clerks

Other hospitality, retail and services managers

Land economists and valuers

Accountants

Real estate sales agents

Wholesale trade102,1006,800

Importers, exporters and wholesalers

Storepersons

Advertising and sales managers

Sales representatives

Sales assistants (general)

Arts and recreation services71,3004,300

Visual arts and crafts professionals

Music professionals

Livestock farm workers

Other specialist managers

Sports coaches, instructors and officials

Electricity, gas, water and waste services45,0004,300

Truck drivers

Other information and organisation professionals

Electrical engineers

Recycling and rubbish collectors

Other specialist managers

Information media and telecommunications57,0002,900

Film, television, radio and stage directors

Journalists and other writers

ICT managers

Artistic directors, and media producers and presenters

Advertising and sales managers

Mining9,2001,000

Truck drivers

Geologists and geophysicists

Metal fitters and machinists

Production managers

Bookkeepers

All industries3,678,600392,200

Ageing and disability carers

Sales assistants (general)

Registered nurses

General clerks

Construction managers

Note: Occupations in demand are the top five ANZSCO four-digit occupations in each industry with the highest number of new workers expected between 2024 and 2027. New workers expected represents employment growth plus workers needed to replace retirements. Occupations that require VET qualifications are supported by government-subsidised training and fee-for-service training. For more detail, see the Employment Projections Dashboard. The number of early childhood (pre-primary school) teachers does not reflect recent changes to the rollout schedule of the Best Start, Best Life reforms announced as part of the 2024/25 Victorian Budget.

Source: DJSIR and VSA modelling, 2024.

Updated