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2026 Targeted Workforce Update
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High Load, Short Supply

2026 Targeted Workforce Update
PSO’s workforce update for the energy sector

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Why it matters

Workforce shortages are increasing pressure on the energy transition and other major projects. Demand for skilled workers continues to rise while supply remains constrained. Governments can respond through coordinated action on licensing, training and investment settings that support workforce growth.

What’s changed since the last report

Demand has risen across energy, housing, defence, data centres and other sectors. Apprentice commencements are not keeping pace with projected workforce demand, while business confidence remains mixed. Together, these trends strengthen the case for coordinated, evidence-based action.

What you said

“The biggest inhibitors to growth over the next 12 months are workforce availability, regulatory complexity, and delivery uncertainty arising from concurrent major projects. Together, these factors reduce schedule certainty and limit the ability to grow the business sustainably.”

Why it matters

Capacity is becoming a critical constraint as training demand grows. Many providers already operate at or above capacity, while apprentice commencements have slowed. Training providers, industry and government can strengthen the workforce pipeline by better aligning training pathways, delivery capacity and industry demand.

What’s changed since the last report

72% of training providers report operating at or above capacity for electrotechnology students. 66% expect enrolments to grow over the next 12 months, and 76% expect growth over five years. Yet 40% have no plans to expand their physical or digital training infrastructure.

What you said

“The biggest challenge is that training and workforce systems are still trying to catch up with the pace of the energy transition. … Greater alignment is needed between government, industry, and training providers so workforce planning translates into practical, funded, accessible training pathways.”

Why it matters

Employers are recruiting, but many roles remain unfilled. Competition for skilled workers is increasing, and long-running vacancies are making it harder to grow. Employers can strengthen their workforce pipeline by investing in apprenticeships, retaining experienced workers and planning earlier for future demand.

What’s changed since the last report

Two-thirds of employers recruited in the past 12 months, yet 55% still have vacancies that have been open for more than six months. Most employers expect tradesperson and apprentice numbers to stay steady or fall over the next year.

What you said

“The biggest inhibitors to growth over the next 12 months are workforce availability, regulatory complexity, and delivery uncertainty arising from concurrent major projects. Together, these factors reduce schedule certainty and limit the ability to grow the business sustainably.”

Why it matters

Shared workforce barriers need a coordinated industry response. Demand is growing across sectors, while licensing, training capacity and regional delivery continue to constrain workforce supply. Industry associations can align advocacy around reforms that no single organisation can deliver alone.

What’s changed since the last report

Energy, housing, defence, data centres and other sectors are competing for the same skilled workforce. Apprentice commencements are not keeping pace with projected demand, while business confidence remains mixed. These pressures make coordinated advocacy more urgent.

What you said

“The most significant systemic opportunity is to implement a national occupational licensing framework for high-risk trades, supported by nationally consistent training outcomes and effective compliance. This would reduce fragmentation, remove barriers to interstate mobility … and allow the workforce to respond more rapidly to demand created by electrification and the energy transition.”

Emerging Issues

New and emerging issues are adding pressure to Australia’s energy workforce and could affect how we attract, train and retain skilled workers.

Estimated Energy Trades Workforce for Data Centres

Construction and operations roles, 2024 vs 2030

Data centre growth could require 13,000 more energy trades workers

By 2030, data centre construction and operations could require an additional 13,000 energy trades workers. Rising electricity demand could add further pressure by increasing the workforce needed to build and maintain generation, transmission and distribution infrastructure.

 

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Comparison of workforce to vacancies

Share of the national electrician workforce against vacancies per 1,000 employees

More than 110 licences create barriers to workforce mobility

Australia has more than 110 electrical licences. Different categories, fees and application requirements increase the cost and complexity of moving workers between jurisdictions. A nationally consistent approach could improve mobility and productivity while maintaining safety and competency standards.

 

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Potential commencements under Middle East impact scenario, Australia

Quarterly electrician commencements, actual and modelled scenario

Middle East and fuel costs

Conflict in the Middle East is increasing fuel and material costs for Australian businesses. Higher costs could reduce investment in apprenticeships, training and upskilling—adding further pressure to an already constrained workforce pipeline.

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Business confidence 2021 – 2025

POSITIVE — above 100 NEGATIVE — below 100

Apprentice commencements tend to fall when economic conditions weaken

Confidence within the utilities sector has been particularly volatile since 2021, closely correlated with apprenticeship commencements and broader workforce investment. Industry associations play a key role in representing sector sentiment to government, reinforcing the case for policy stability, and supporting members to sustain training and apprenticeship investment even through periods of economic uncertainty.

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The Four Cs framework

Australia’s energy transition depends on four workforce conditions

Capacity, capability, culture and confidence work together to shape workforce outcomes.

Do we have enough workers?

Australia will need substantially more energy trades workers as demand grows. When workforce supply falls behind, projects face delays and higher costs, while pressure builds on energy security, affordability and reliability. Growing the workforce pipeline and training capacity is critical to keeping the energy transition on track.

Do workers have the skills they need?

New technologies are changing the skills energy trades workers need. Foundational qualifications remain essential, but distributed energy resources, battery storage, electric vehicles and digital control systems increasingly require workers to combine electrical, digital and systems-based skills. Training needs to keep pace with how the work is changing.

Can the sector attract and retain a more diverse workforce?

Workplace culture shapes who enters the sector, who stays and who progresses. Women, First Nations people and culturally and linguistically diverse communities remain underrepresented across the workforce. Safer, more inclusive and flexible workplaces can broaden participation, improve retention and strengthen workforce resilience.

Is there enough certainty to invest and act?

Confidence shapes whether businesses invest, workers commit to career pathways and the training system can plan ahead. Uncertain market conditions, policy settings and commercial viability can slow workforce growth. Clear policy direction, stable investment signals and visible career pathways can reduce uncertainty and support coordinated action.

See what the transition means on the ground and why local skills, workforce capacity and training matter.

Industry Snapshots

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Energy trades workers needed by 2030

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Energy trades commencements in 2025

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Energy trades workforce
in 2025

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Surveyed businesses reporting skills shortages

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Training providers operating at or above capacity

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Employers still carrying vacancies despite recruiting

Project Updates

Apprenticeships

Electrician Workforce Capacity Study

Understand what is limiting apprenticeship growth and how employers can help expand Australia’s future electrical workforce.

Explore the research

Skills Research

Foundations for Literacy and Numeracy

Explore the literacy and numeracy foundations apprentices need to succeed in electrotechnology training and their careers.

Read the research

Workforce Research

Productivity and Skills

Explore how skills shortages are affecting productivity in Australia’s energy sector and why building workforce capability is critical to meeting future demand.

Explore the research

Industry Insights

VET Blueprint: Diagnosing System Pressure Points

Discover the pressures facing Australia’s energy VET system and the opportunities to strengthen training capacity, industry connections and the future training workforce.

View the findings

Workforce Planning

High Load, Short Supply

Explore the workforce and skills challenges shaping Australia’s energy transition and the actions needed to build workforce capacity.

Read the Workforce Plan

Policy

Electrifying the Future

Explore PSO’s policy recommendations for growing Australia’s skilled energy workforce and supporting the transition to a more electrified economy.

Read the report

Other Reports

Electrician Workforce Capacity Study

Why more apprentices are essential and who holds the keys to growth.

Download
Foundation for Energy: Literacy and Numeracy for Energy Jobs

How closing a numeracy skills gap can help grow Australia’s energy apprenticeship pipeline

Download