The Albanese Government’s vision is for a dynamic and inclusive labour market in which everyone has the opportunity for secure, fairly paid work and people, businesses and communities can be beneficiaries of change and thrive.

Today’s labour market is much more inclusive, flexible, services-oriented and productive than in previous eras, but there’s more work to do to achieve the government's vision and maximise Australia's potential.

Australia currently has an unemployment rate near historic lows and a participation rate around record highs, although labour market conditions are expected to soften over the coming year. Wage growth has started to pick up, inflation has started to moderate but is still too high, and workforce shortages are holding back businesses and our economy. While skill and worker shortages are easing for some sectors, long-term solutions will be needed to meet growing workforce demands in sectors such as care and support services.

Australia's economy and labour market will be shaped by five forces in the coming decades – population ageing, rising demand for quality care and support services, expanded use of digital and advanced technologies, climate change and the net zero transformation, and geopolitical risk and fragmentation. These forces are changing the composition of our industries, workforce needs, and the nature of work itself. Maximising the opportunities these shifts present, and ensuring all Australians can participate and benefit, will require a more productive, dynamic and resilient economy, with a bigger, better-skilled and more adaptable workforce.

This white paper provides a roadmap to position the Australian labour market for the future. It outlines the practical actions being taken and further reform directions required.

Five ambitious objectives contribute to achieving the Albanese Government’s vision:

1. Delivering sustained and inclusive full employment
2. Promoting job security and strong, sustainable wage growth
3. Reigniting productivity growth
4. Filling skills needs and building our future workforce
5. Overcoming barriers to employment and broadening opportunity