A surge in employment reported today highlights the need to address Australia’s skill shortage urgently.

“Employment bounced back strongly in February, rising by 116,000 people, and hours worked grew by 53 million hours, following declines in December and January,” ACCI chief executive officer Andrew McKellar said.

“More than two-thirds of the new jobs created in January were full-time. Employers who had been recruiting in earnest in January have been able to tackle the backlog of vacant positions.

The labour market remains tight, with unemployment dropping back to its August 2023 level of 3.7 per cent.

“Job vacancies remain at almost double their pre-COVID levels, with employers continuing their struggle to find people with the right skills to fill unfilled positions,” Mr McKellar said.

“The return to work in February is welcome and highlights the continuing need to address skills shortages and ensure that employers have access to employees with the necessary training and experience to fill vacant positions.”