A new report launched by Regional Development Australia Illawarra Shoalhaven (RDAIS) is shining a spotlight on the workforce challenges threatening to stall the region’s economic momentum – while offering a strategic roadmap for change.
Released in late May 2025, the inaugural State of the Workforce Report captures the most comprehensive picture to date of the skills gaps, structural hurdles and employment barriers confronting local employers – and outlines practical, long-term solutions to help the region thrive.
Backed by a year of extensive community consultation and data modelling using Jobs and Skills Australia’s ATLAS platform, the report highlights the scale of the challenge: more than 1,500 job vacancies across the Illawarra and Shoalhaven are costing the region an estimated $212.5 million in lost income and $53 million in forgone tax revenue.
RDA Illawarra Shoalhaven, Chief Executive Officer, Selena Stevens, said workforce shortages don’t just impact unfilled job ads but have a flow on effect to a region’s economic potential.
“This is not just a workforce issue. Every job left unfilled represents an impact on regional growth. Workforce shortages don’t happen in isolation, and we are advocating for a full picture, all-in approach to help address this challenge.
“We need coordinated, place-based, long-term strategies which reflect the specific challenges and strengths of our region, grounded in insights from people and businesses on the ground.”
Turnover, Training, and Transport: Key Challenges Unpacked
The report reveals that staff turnover in the region is 22.6% higher than the NSW average, and nearly half of employers are relying on contractors simply to keep operations running. At the root of the issue are mismatches between available skills and industry needs, compounded by limited training options, childcare shortages, and barriers to accessing public transport.
Yet, the report is not simply a catalogue of problems – it is a call to action.
The findings reflect a growing need to align workforce development with the region’s long-term economic potential – and that means locally driven solutions, grounded in regional knowledge and insight.
A Regional Framework for Action
Structured around three pillars – Attraction, Retention and Resilience – the report includes a practical implementation framework to guide businesses, governments, educators and community leaders in a coordinated approach.
Among the proposed solutions: improving regional training pathways, investing in workforce housing and childcare infrastructure, and strengthening cross-sector collaboration to align education with emerging industry needs.
Despite the scale of the challenge, the report underscores that the Illawarra Shoalhaven region is well positioned to lead – thanks to its strong foundation of workforce and industry engagement.
A Call for Collaboration
RDA Illawarra Shoalhaven is inviting community members, local employers and stakeholders across all sectors to read the report and participate in shaping the next phase of action.
The organisation emphasises that regional workforce development is a shared responsibility – and that unlocking the full economic and social potential of the region will require coordinated, long-term effort.
The full State of the Workforce Report is available for download here.
