Across the Northern Territory, skills shortages are no longer an occasional inconvenience for employers. They are now a structural economic problem – and one that is quietly holding the Territory back.
Latest data from the Australian Bureau of Statistics shows more than 5,000 unfilled positions in the NT, with approximately 85 per cent of those vacancies in the private sector. This represents lost output, delayed projects and unrealised economic potential.
At the same time, the Federal Government, through Jobs and Skills Australia, is examining how Australia’s skills system should evolve, including how skills are developed, recognised and matched to the needs of the economy.
For the Northern Territory, this discussion is critical.
Regions ultimately succeed or struggle based on whether they have enough people to do the work and the right skills to remain competitive. When workforce settings are aligned with economic needs, productivity improves, investment follows and living standards rise. When they are not, growth stalls.
Across construction, health, education, hospitality, professional services and the trades, NT businesses report the same challenges. Projects are delayed. Growth plans are postponed. Costs increase as employers compete for scarce skills or rely on overtime, contractors and short-term fixes simply to stay operational.
In a small economy, these effects compound quickly.
Skills shortages also have broader consequences. They place sustained pressure on existing workers, driving burnout and higher turnover. Wage growth can outpace productivity, contributing to inflation and higher prices. Service quality declines, and communities feel the impact.
This challenge is intensifying nationally. As baby boomers retire in large numbers, all regions of Australia are adjusting to major labour market change. For the NT, with its smaller and more mobile workforce, the effects are more immediate and more pronounced.
Migration has always been central to the Territory’s workforce and economic development. The NT’s vibrant multicultural community is not just a social strength, it is an economic one. Skilled migrants support essential services, enable businesses to operate and contribute directly to productivity and population stability.
However, migration settings must work for regional economies. Pathways that are slow, uncertain or overly complex undermine the very benefits migration is intended to deliver, particularly for small and medium-sized employers.
Importantly, this is no longer simply a matter of filling vacancies. Whole economies are now competing for labour.
When regions get their settings right, the benefits extend well beyond business. Stronger economies deliver higher living standards, and the taxes raised help fund health, education and other community services. Get the settings wrong, and it becomes an exercise in frustration, plenty of effort, but little progress.
Business owners and managers must play an active role in shaping future workforce policy. Those at the coalface understand what skills are needed, where systems fail and what incentives actually work. Policymakers need that input if reforms are to succeed.
DMBG believes the Northern Territory offers Australians career opportunities and lifestyle benefits that few regions can match. But belief alone is not enough. We must tell that story clearly, reduce barriers and be prepared to compete hard for talent.
The future prosperity of the Territory – and the wellbeing of its communities – depends on getting this right.
