Corporate Housing News

Australian employers are delaying projects, scaling back services and pushing staff to capacity as persistent skill shortages collide with constrained access to overseas talent, new national research shows.

The findings, from one of the only employer-led surveys of its kind in Australia undertaken by The Employee Mobility Institute (TEMi) Immigration Advisory Group, reveal that workforce shortages are no longer a future risk, but an immediate operational issue across industries.

More than three in four employers (77.42%) say they simply cannot find the skills they need locally, while 64.52% report there are not enough candidates in the market to fill roles.

As a result, businesses are increasingly turning to skilled migration, not as a first option, but as a last resort.

“Employers are not looking offshore by preference, they are doing it because they have run out of local options,” said TEMi Immigration Liaison Officer Jamie Lingham.

From workforce gap to operational pressure

The consequences of those shortages are already being felt inside organisations.

Nearly half of employers (48.39%) report reduced service capacity, while 45.16% say existing staff are under increased workload pressure, raising concerns about burnout.

At the same time, 38.71% report delays or cancellations to projects, and a staggering 45.16% say they are unable to grow or take on new work.

The data paints a clear picture: workforce shortages are now constraining business performance, not just recruitment pipelines.

“This is no longer just a hiring challenge, it is an operational one” Mr Lingham said. “When employers cannot access the skills they need to meet demand, the impact flows directly through to service delivery, staff wellbeing and growth.”

Migration as a targeted solution

Despite ongoing public debate, the research shows employers are not broadly reliant on overseas labour.

Local hiring remains the dominant strategy, with 64.52% of organisations prioritising domestic recruitment and only turning to migration when those efforts fail. Only 3.23% say they primarily rely on overseas recruitment.

Even where migration is used, its footprint is relatively small: more than half of employers report overseas workers make up less than 10% of their workforce, and 34.38% say fewer than 5% of skilled roles are filled by overseas foreign nationals.

Instead, migration is being used in a highly targeted way, to fill critical gaps that cannot be addressed locally.

This is reflected in strong employer sentiment, with 86.2% agreeing that skilled migration complements, rather than replaces, local hiring.

A system under strain

While demand for skilled migration remains strong, employers say the system itself is adding to workforce pressures.

Three quarters (75.76%) identify visa processing times as a major challenge, alongside cost (54.55%) and administrative complexity (36.36%).

“According to Settlement Services International, skilled migrants contribute over $6bil to the country and immediately fill critical skills gaps for projects, many of which do not have the luxury of time to be completed” Mr Lingham said.

“The Department of Home Affairs needs to look at applications with a 3D lens, as opposed to being one-dimensional when managing processing priorities”.

At the same time, many organisations are adapting by turning to workers already in Australia, with 32.26% reporting increased reliance on onshore visa holders as a faster and more practical pathway.

Reliance set to continue

Looking ahead, employers expect little relief from workforce shortages.

Nearly seven in ten (69.70%) expect their reliance on employer-sponsored migration to remain steady, while more than a quarter (27.27%) anticipate it will increase. Only 3.03% expect this need to decline.

For many organisations, overseas workers are now embedded in day-to-day operations, with more than 75% describing them as essential or very important to their ability to function.

A structural workforce issue

The findings highlight a persistent gap between labour demand and local supply, particularly in specialist technical and operational roles.

“It was striking to see how consistently employers across industries reported the same issue: the skills they need are simply not available locally,” Mr Lingham said. “What that tells us is this is not cyclical, it’s structural and the training pipeline of local workers is drying up.”

About the research

The Employer Perspectives on Skilled Migration in Australia survey was conducted by The Employee Mobility Institute (TEMi) Immigration Advisory Group between February and March 2026, capturing responses from organisations across sectors including healthcare, technology, engineering and financial services.

The survey remains open as part of an ongoing national research initiative.

The 30-page Employer Perspectives on Skilled Migration in Australia Report (February-March) is available to download free at www.temitalent.com.au/resources.

Media contact

Jamie Lingham is available for interview, photo and vision opportunities.

Catherine Miller
Principal Consultant, Script PR
E: catherine@scriptpr.com.au
P: +61 422 071 256

ABOUT THE EMPLOYEE MOBILITY INSTITUTE (TEMi)

The Employee Mobility Institute (TEMi) is Australasia’s peak membership body for global workforce management and talent mobility professionals. Representing practitioners across Australia and New Zealand, TEMi is the professional home for HR and mobility leaders, tax and immigration specialists, relocation providers, and business executives committed to advancing workforce mobility in the region.

For more than a decade, TEMi has fostered professional growth and community connection through qualifications, development programs, mentoring, and networking. As the collective voice of the mobility profession, TEMi equips its members with the knowledge, relationships, and influence to anticipate disruption, shape organisational strategy, and elevate the impact of mobility in a globalised economy.

The Quest TEMi Australasian Workforce Management Awards are the region’s most prestigious recognition of excellence in talent mobility and workforce management. The program provides a powerful platform to showcase innovation, best practice, and people-first approaches to mobility, while honouring the outstanding individuals and organisations setting new benchmarks for the profession. Each year, the Awards attract entries from multinational corporations, local enterprises, and service providers across diverse industries — reflecting the breadth, influence, and impact of the mobility community in Australasia.

TEMi’s flagship Mobility Exchange Summit is Australasia’s premier retreat for mobility leaders, which provides an immersive environment for practitioners to explore emerging trends, strengthen professional connections, and gain the insight and confidence needed to navigate the shifting landscape of global talent and mobility.

ABOUT JAMIE LINGHAM

Jamie Lingham, the CEO of Absolute Immigration Group, which includes Absolute Immigration Australia, Absolute Immigration Legal, and Absolute Immigration New Zealand, has been appointed as TEMi Immigration Liaison Officer.

Active in the industry since 2001, Jamie takes a holistic approach to the overseas immigration and relocation process, specifically looking at ways to educate clients in order to reduce issues faced by business sponsors and visa applicants moving to Australia and other destinations. He has extensive experience developing immigration policies, compliance and strategies for the attraction and retention of overseas workers. He has undertaken significant compliance projects for state government departments, multinational organisations and ASX-listed companies in both Australia and New Zealand.

For more information about TEMi, visit www.temitalent.com.au.