Tradespeople are among the Australians least likely to lose work to artificial intelligence, according to a new federal government report that tracked AI’s impact on the local jobs market for the first time.
The AI and Employment in Australia report, published 8 July by the Department of Employment and Workplace Relations (DEWR) using Jobs and Skills Australia data to February 2026, found that jobs requiring manual skills and vocational training are the least exposed to automation. Tradespeople, aged care workers, truck and forklift drivers, cleaners and gardeners all sit firmly in the low-exposure category.
At the other end of the scale, telemarketers, call centre workers, clerks, receptionists, accountants, software programmers, retail managers and advertising and marketing professionals were classed as the most at risk. The report noted that workers in those roles are more likely to be women and hold university qualifications. It described the highest-risk roles as “routine cognitive jobs” whose tasks are most able to be automated by generative AI.
The numbers back up the split. Since November 2022, when ChatGPT launched and kicked off the current AI wave, employment in the least-exposed occupations has grown 9.5 per cent. In the most-exposed occupations, growth came in at only 5.6 per cent over the same period. Software development employment bucked its own high-exposure classification, rising 25 per cent in that time. Australia’s overall unemployment rate sat at 4.4 per cent as at May 2026, with workforce participation near record highs.
Employment Minister Amanda Rishworth said the report showed AI had not yet caused upheaval in the labour market. “Our Labor Government is determined to ensure AI is harnessed to create good jobs, not threaten them,” she said. The report found “no significant impact on overall employment growth and no major shifts in types of jobs across occupations” as of February 2026, though it flagged that AI-exposed roles are growing more slowly over time. The Productivity Commission has separately estimated AI could deliver productivity gains of at least 2.3 per cent over the next decade, with labour productivity up an estimated 4.3 per cent.
The report also cited Anthropic chief executive Dario Amodei, who had predicted AI could wipe out 50 per cent of entry-level white-collar jobs and push unemployment to between 10 and 20 per cent within five years. According to reporting by Fortune, Amodei has since walked back that position as of May 2026, and the DEWR report noted there is no evidence of that scenario playing out in Australian data.
For tradies, the report is straightforward good news. Demand for manual, hands-on skills is growing faster than for office-based roles, and the government’s own data confirms that vocational training is a genuine buffer against the AI threat. The Albanese government is expected to release updated AI regulation plans the week of 14 July 2026, which may include skills and training pathway commitments that could benefit the trades sector further.
Frequently asked questions
Which jobs are most at risk from AI in Australia?
The DEWR report classed telemarketers, call centre workers, clerks, receptionists, accountants, software programmers, retail managers and advertising and marketing professionals as the most exposed to AI displacement, describing them as ‘routine cognitive jobs’.
Why are tradespeople less exposed to AI job losses?
Tradespeople perform manual, hands-on tasks that current AI and automation systems cannot readily replicate. The DEWR report found vocational training is a genuine buffer against AI-driven displacement.
Has AI already caused significant job losses in Australia?
As of February 2026, the DEWR report found no significant impact on overall employment growth and no major shifts in the types of jobs across occupations, though AI-exposed roles are growing more slowly over time.
What did the Productivity Commission say about AI and the economy?
The Productivity Commission separately estimated AI could deliver productivity gains of at least 2.3 per cent over the next decade, with labour productivity rising an estimated 4.3 per cent.
Sourced from The Guardian Australia, Department of Employment and Workplace Relations, Jobs and Skills Australia, Productivity Commission, Fortune, HCA Mag. Original article.
