Australia’s Automotive Skills Crisis Threatens National Productivity

Australia’s automotive industry is facing an unprecedented skills shortage, with the Motor Traders’ Association of NSW (MTA NSW) warning that the situation has reached crisis point. The lack of qualified technicians is now jeopardising the sector’s stability and the nation’s overall productivity.

Recent figures from Jobs and Skills Australia confirm that the skills gap has widened significantly. Critical roles such as panel beaters and spray painters are in short supply across every state and territory, placing sustained pressure on businesses and essential services.

To address the issue, MTA NSW is calling for a national action plan that includes co-ordinated investment in training, stronger incentives for apprenticeships, and formal recognition of the automotive industry’s vital role in supporting economic growth.

Stavros Yallouridis, Chief Executive Officer of MTA NSW, emphasised that the shortage is not new but is worsening rapidly, with repercussions felt throughout the economy.
“We have been warning for years that the lack of qualified technicians would cripple productivity. It’s not just about filling jobs – it’s about keeping essential industries moving. Every freight truck, every regional service van, every family car depends on this workforce,” Yallouridis said.

The ageing workforce is compounding the problem, particularly in regional and rural areas where businesses are closing due to a lack of skilled staff and fewer young people entering trades.

Data from the National Centre for Vocational Education Research highlights the challenge. Its report, 2024 Generation Z: Life After COVID, reveals that only 67 per cent of 24-year-olds hold a qualification – down from 77 per cent in 2012 – and just 54 per cent are in full-time employment.

“These figures show that young Australians aren’t getting the training or job opportunities they need, and the automotive industry is feeling that acutely,” Yallouridis added.

He warned that without immediate government action to strengthen apprenticeship and training pipelines, the shortage will deepen further, dragging down small businesses and essential services.
“Without qualified technicians, the costs flow to everyone – higher repair times, business downtime and reduced freight efficiency. We need urgent, co-ordinated action to address this skills gap nationwide.”