SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER TO THE SHADOW TREASURER
SHADOW ASSISTANT MINISTER FOR THE COST OF LIVING
LIBERAL SENATOR FOR WESTERN AUSTRALIA
5 June 2026
AUSTRALIA NEEDS TO CREATE NEARLY 2 MILLION NEW JOBS OVER THE NEXT DECADE TO KEEP PACE WITH POPULATION GROWTH
Australia will need to create almost two million new jobs over the next decade simply to maintain the current unemployment rate, according to new analysis by the Parliamentary Library commissioned by Western Australian Liberal Senator Dean Smith.
The research shows that, under the Australian Bureau of Statistics’ medium population growth projections, Australia’s workforce is expected to grow to more than 17 million people by 2036.
To maintain the current unemployment rate of 4.5 per cent, Australia would need to create approximately 1.9 million additional jobs over the next ten years.
Even if that target is achieved, the number of unemployed Australians is still projected to rise to more than 770,000 people by 2036.
The challenge is being driven by continued strong population growth, with Australia’s population increasing by 423,600 people, or 1.6 per cent, in the year to September 2025.
Creating enough meaningful, productive and well-paid private sector jobs for this expanding workforce will be one of Australia’s defining economic challenges over the next decade.
At the same time, employment growth is becoming increasingly concentrated in the public sector.
Across all levels of government, public sector employment increased by 82,000 positions in the last financial year, with total public sector employment growing by 3.26 per cent — more than double the national population growth rate of 1.6 per cent.
The expansion of government employment has occurred alongside a significant increase in public debt, with total public sector debt across federal, state and local governments reaching $1.62 trillion in 2025, up 13 per cent on the previous year.
Long-term prosperity cannot be built on government-funded employment growth alone. Australia will need a stronger investment environment that encourages businesses to expand, innovate and create the private sector jobs required to support a growing population.
Comments attributable to Senator Dean Smith:
“Australia is facing a simple but significant challenge — we need to create almost two million new jobs over the next decade just to stand still.”
“Population growth can be an economic strength, but only if we are creating enough productive private sector jobs to support it.”
“Australians want secure, well-paid jobs, but those jobs will only come from a strong and growing private sector, not an ever-expanding public service.”
“Government employment has been growing at more than double the rate of population growth, while public debt continues to climb – that is not a sustainable long-term economic model.”
“Australia needs policies that encourage investment, reward enterprise and give businesses the confidence to employ more Australians.”
“Unless we improve productivity and strengthen the conditions for private sector growth, creating the jobs needed to support our growing population will become increasingly difficult.”