Australia turns to Philippines’ young population to address labor shortage

AUSTRALIA is looking to strengthen its labor ties with the Philippines as it grapples with a workforce shortage brought by its ageing population.

In a briefing on Wednesday, Assistant Minister for Foreign Affairs and Trade Matthew James Thistlethwaite of Australia said the Philippines’ young population could help address Australia’s worker shortage, particularly in the healthcare and construction sectors.

“Australia doesn’t have such a young population unfortunately, ours is an aging population, which means that we’re not replacing the same number of workers in the workforce who are leaving our workforce,” Mr. Thistlethwaite of Australia said in a briefing on Wednesday.

“That requires us to look to our international partners to provide skilled labor in the Australian economy.”

He cited the Philippines’ young population, which he sees as a “great opportunity” for upskilling.

According to a 2024 report by the ASEAN+3 Macroeconomic Research Office (AMRO), the median age for Filipinos is at 24.5 in 2021, placing the Philippine population as the second youngest in Southeast Asia; while data from the Australian Bureau of Statistics showed Australia’s median population age in 2024 was 38.3 years old. Australians aged 65 and above also increased to 17% from 12% within two decades since 1994.

Mr. Thistlethwaite noted that their government is focusing on building more homes for Australians, necessitating a large number of skilled workers. 

“We’ll need a large number of skilled workers across all of the building trades to achieve that aim,” he said, adding the Australian government will provide training which can be beneficial to Filipino skilled workers.

Mr. Thistlethwaite is in Manila to lead the Australia-Southeast Asia Business Exchange mission, which aims to improve the trade and investment relations of Australia and the Philippines in terms of infrastructure, renewable energy, agriculture, and education.

He will also meet with the officials from the departments of Trade and Industry, Foreign Affairs, and the Technical Education and Skills Development Authority to discuss bilateral trade agreements including the enhancement of their education collaboration with the Philippines. Every year, 20,000 Filipinos come to Australia to study. — Kaela Patricia B. Gabriel