Australia’s automotive industry is grappling with a significant shortage of skilled mechanics, a crisis that threatens to impact vehicle maintenance and repair services nationwide. This article examines the current state of the shortage and explores projections for the future, highlighting the urgent need for employers to take action.
Current Shortages
The automotive mechanic shortage in Australia is both severe and widespread, as evidenced by several key indicators. According to the Skills Priority List, all five reviewed occupations in the automotive electricians and mechanics category are experiencing shortages.
This highlighted by the low number of applicants for job vacancies. On average, automotive businesses receive only 8.2 applicants per vacancy, which is less than half the national average of 17.7. Some specialised roles, such as motorcycle mechanics and panel beaters, attract even fewer applicants, with less than five per vacancy.
The shortage is also reflected in the industry’s low fill rates. The Motor Trades Association of Australia (MTAA) reports that the industry fill rate for advertised vacancies is just 39%, significantly below the 67% threshold that indicates a shortage. This shortage is not isolated and affects a majority of businesses in the sector.
In 2021, the MTAA reported that 52% of automotive businesses nationally faced a shortage of skilled labour, with a national skilled labour deficit of 31,143 positions. The high demand for auto mechanics is underscored by over 1,600 listings on Seek for these positions.
Regional areas are particularly affected, with employers there filling only 33% of their vacancies, compared to a slightly higher fill rate of 41% in metropolitan areas. Currently, under ANZSCO 321211 ‘Motor Mechanics (General)’, there are 79,300 employed individuals, with 14% working part-time and a median age of 36.
Projected Shortages
Looking to the future, the automotive mechanic shortage in Australia is expected to persist and potentially worsen. According to projections, 80% of the automotive occupations listed on the Skills Priority List are anticipated to have moderate future demand, while 20% are expected to have soft demand.
A significant challenge looming on the horizon is the ageing workforce. By 2031, a substantial portion of the current workforce will be approaching retirement age, which will increase the pressure to train and retain new entrants to the field.
Despite efforts to address this issue, with a 3.4% increase in motor mechanic apprentices in training nationally (totalling 29,350 in 2023), many employers report that graduates often lack the necessary practical skills.
This problem is compounded by difficulties in retaining young apprentices. The automotive industry faces stiff competition from other sectors, particularly the mining industry. The lucrative salaries offered by mining companies have drawn many young Australians away from traditional trades, including auto mechanics. Since the beginning of the pandemic, the mining industry has added approximately 66,000 workers within two years, many of whom were poached from other sectors. These factors combined paint a challenging picture for the future of the automotive mechanic workforce in Australia.
Conclusion
The shortage of automotive mechanics in Australia is a complex issue driven by low applicant numbers, inadequate training, and regional disparities. Addressing this shortage requires coordinated efforts from both industry and government to enhance training programs, improve working conditions, and streamline migration processes. For employers, hiring international talent is the most immediate and effective way to address labour needs.