Australia’s Health & Aged Care Workforce in 2026

If you’re weighing up your next career move or trying to build a care team that lasts, there’s one sector you can’t ignore in 2026.  Health and aged care is Australia’s largest employing industry, and it’s still growing faster than the workforce behind it.

Here’s where the demand is, what’s driving it, and how to get ahead.

Where the demand is

The shortage isn’t confined to one corner of the sector — it runs right across it:

Nursing. Registered nurses remain the most sought-after professionals in care. Since residential facilities were required to have an RN on site 24/7, demand for clinical staff has stepped up permanently and government modelling points to a nursing shortfall stretching well into the 2030s.

Allied health. Physiotherapists, occupational therapists, speech pathologists and dietitians are in short supply everywhere, with reablement and restorative care now front and centre of how services are funded and delivered.

Community and home care. The biggest shift of all. With the new Support at Home program now in full swing, more Australians are being cared for where they want to be – at home. That means sustained demand for support workers, care coordinators, case managers and the leaders who hold these services together.

What’s driving it

Three forces are converging:

An ageing population. By 2031, nearly one in five Australians will be over 65, and the over-85 cohort (those most likely to need care) is growing fastest of all. Industry analysis suggests the sector needs roughly 17,000 additional direct care workers every year for the next decade just to keep pace.

Reform. The new Aged Care Act and Support at Home have rewritten how care is funded, regulated and delivered. Providers are restructuring, new registration categories are in play, and compliance capability is suddenly a career asset.

Competition for talent. Hospitals, aged care, disability and community services are all drawing from the same pool. Award wage increases have lifted pay across the sector, but candidates still have options and they know it.

What it means for candidates

This is a job seeker’s market with genuine career depth. Specialist skills like dementia care, palliative care, clinical governance, quality and compliance are increasingly rewarded, and the path from care roles into coordination and leadership has never been more open. If you’ve been thinking about a move, into the sector or up within it, 2026 is the year the market is working in your favour.

What it means for employers

Waiting for the perfect applicant to arrive is no longer a strategy. The providers winning the talent race are moving quickly on good candidates, benchmarking salaries against the market rather than last year’s budget, investing in development and flexibility, and telling a genuine story about culture and purpose. Retention is the quiet advantage: every good person you keep is one you don’t have to find.

Get ahead in 2026

MARS Recruitment’s Health & Aged Care team works with providers and professionals across Melbourne, Sydney, Perth and Brisbane, from nursing and allied health to community care and executive leadership.

Whether you’re planning your next move or your next hire, talk to our team today.

[DISCLAIMER] The information provided in this article is for general, informational purposes only and should not be construed as professional advice. Individuals are encouraged to seek guidance from qualified career coaches or advisors when navigating career transitions.

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