Nationwide Local Government Skills Audit
Australia’s councils are facing a critical workforce challenge. With skills shortages at record levels, Public Skills Australia has launched a national Local Government Skills Audit to identify the skills gaps and ensure councils have the workforce capability needed for the future. While the final report is due to be published in 2026, now is the time for councils to get involved – through surveys, workshops, and consultation sessions running across 2025.
The skills shortage crisis
The evidence is stark: more than 91% of councils reported workforce shortages in 2021-22, up from 69% just four years earlier. In many cases, councils are carrying dozens of unfilled vacancies – some as much as 30% of their workforce. These shortages have a direct impact on infrastructure projects, environmental management, and other council services.
Roles in engineering, town planning, building surveying, and environmental health are among the most difficult to fill, with some councils reporting recruitment cycles of four months or longer. In regional and remote areas, the challenge is even more acute, where competition with the private sector and limited local training pathways make it harder to attract and retain staff.
Without immediate intervention, these gaps will only grow as the workforce ages and demand for local government services increases.
About the ‘Local Government Skills Audit’
The Local Government Skills Audit 2025–26 is a significant project led by Public Skills Australia (PSA), the Jobs and Skills Council for the public sector. Funded by the Australian Government, the project will provide a comprehensive, evidence-based picture of the workforce and identify skills gaps across the nation’s 537 councils.
Running from May to December 2025, the audit will collect data, engage directly with councils, and deliver a final report with project findings and recommendations to the Department of Employment and Workplace Relations in 2026.
How the audit works
PSA’s methodology combines quantitative research with qualitative consultation. On one side, data on vacancies, training enrolments, and projected retirements will be mapped against the content of local government training packages to identify misalignments. On the other, PSA is capturing real-world insights through workshops, and a survey with councils nationwide.
This two-pronged approach ensures the audit captures both the numbers and the lived experiences – whether it’s the barriers small councils face in sending staff to training, or the challenge of retaining graduates in regional areas.
Importantly, the process is inclusive. PSA is working with local government associations, Registered Training Organisations, and community stakeholders to ensure councils of all sizes, from metro to remote, have their voices heard.
Why council participation matters
The audit’s findings will directly shape future training reforms, curriculum design, and workforce strategies. Councils that contribute will help ensure their specific needs are reflected in national planning.
Without strong participation, the final report risks missing the nuances of local challenges. This is a chance for councils to influence the training pipeline and secure the skills they need to deliver services and infrastructure.
Benefits for councils
Getting involved is not only strategic, it’s also practical. PSA is offering funded opportunities for councils to participate in workshops, including travel support for remote representatives. Councils that engage will gain early insights into the skills mapping process, and have the opportunity to highlight innovative local solutions that could be scaled nationally.
Longer term, participation will pay dividends through:
- More responsive training pathways that better align with local government roles.
- Improved recruitment prospects as skills gaps are addressed nationally.
- Greater workforce resilience, reducing the risk of project delays and service interruptions caused by unfilled vacancies.
Looking ahead
The final report, due to be published in 2026, will provide a roadmap for building a stronger, future-ready local government workforce. Its recommendations will guide updates to training packages, policy settings, and industry partnerships – helping councils secure the talent they need to meet community expectations.
But the outcomes will only be as strong as the input. Councils that step forward now, share their workforce challenges, and participate in the consultations will be helping to shape the future of the sector.
This is a transformative opportunity to drive meaningful change and enhance the capability of the local government workforce.
To participate, please contact your Local Government State and Territory Association workforce development representative.
More information: Public Skills Australia – Local Government Skills Audit
Sources:
https://publicskillsaustralia.org.au/projects/local-government-skills-audit-2025
2022 Local Government Workforce Skills and Capability Survey
2018 Local Government Workforce and Future Skills Report Australia
