Joint Media Release: Councils face critical skills shortages as workforce pressures intensify: national report

A new national report has revealed widespread and persistent workforce shortages across Australia’s local government sector, with critical vacancies in engineering, planning and building professions threatening councils’ ability to deliver essential community services and national productivity targets.

Local government is one of Australia’s largest employment sectors, with 218,000 people employed across 538 councils – a sector that experienced an average of 2.2 percent annual growth between 2018 and 2025.

The Australian Local Government Association (ALGA) and Public Skills Australia launched the Local Government Skills Audit and Review of the Uptake and Utility of the LGA Local Government Training Package National Report today at ALGA’s National General Assembly in Canberra.

The report, developed through extensive consultation across the local government sector, draws on insights from 280 councils and seven state and territory local government associations.

It finds occupational shortages remain one of the most significant constraints facing councils, with 83 per cent reporting persistent vacancies. Shortages are most acute in specialist professions including engineers, building surveyors and town planners, with rural and remote councils disproportionately affected.

Public Skills Australia’s Director of Workforce Strategy and Insights, Adam Halliwell, said the project provided valuable insights into the workforce challenges and opportunities facing the sector.

“Local government employs more than 400 different occupations, demonstrating the array of services provided by councils and the broad skills and capabilities required for this important workforce,” Mr Halliwell said.

“With the expansion of these services, it’s vital that local councils have access to quality vocational education and training opportunities to continually upskill their workforces now and into the future.”

ALGA President Mayor Matt Burnett said councils were facing growing challenges attracting and retaining the skilled workers needed to meet increasing community expectations and responsibilities.

“Local government is on the frontline of delivering the services Australians rely on every day, from maintaining roads and community facilities to supporting housing growth, disaster resilience and environmental management,” Mayor Burnett said.

“To deliver these services effectively, councils need access to a skilled and capable workforce. Yet many councils, particularly in regional, rural and remote communities, are struggling to fill critical positions.”

“The shortage of engineers, planners and other specialist professionals is creating real challenges for councils and the communities they serve. These are the people who help deliver housing developments, maintain essential infrastructure and support local economic growth.”

The report highlights the increasingly complex operating environment facing councils, driven by rising community expectations, rapid digital transformation, expanding regulatory requirements, increased responsibilities in disaster preparedness and recovery, and changing workforce demographics.

It also confirms the importance of vocational education and training (VET) as a key pathway for developing local government skills, particularly for compliance and safety-critical roles.

However, councils continue to face challenges accessing and resourcing appropriate training opportunities.

Mayor Burnett said stronger investment in workforce development would be critical to ensuring councils can plan for challenges such as housing supply and infrastructure delivery needs.

“Local government employs people across more than 400 occupations and is often one of the largest employers in regional Australia,” he said.

“Building a sustainable local government workforce is not just a council issue. It is essential to the long-term prosperity, resilience and liveability of communities across the country.”

The project produced eight reports, comprising a national report and seven state and territory reports, including the Northern Territory.

More information and copies of the reports are available from Public Skills Australia at www.publicskillsaustralia.org.au/lgsa.