Regional Labour Market Indicator: Major Cities vs Regions – 4 June 2026

Key RLMI March 2026 labour market data

How major city labour markets are performing

According to the March 2026 Regional Labour Market Indicator (RLMI), labour market conditions remain stronger in Australia’s major cities than in regional areas. Almost two-thirds (64%) of major city labour markets were rated either strong or above average, with particularly favourable conditions across Sydney, Brisbane and Perth. For migration agents assessing skilled visa prospects and applicants comparing locations, this confirms that large metropolitan regions still dominate headline labour demand in the latest ImmiIQ data.

Which regional areas are doing well – and which are not?

Across regional Australia, the RLMI describes a far more varied picture. Several regions recorded strong labour market outcomes, including areas surrounding Greater Brisbane, south‑west Western Australia, the Surf Coast in Victoria and parts of the Southern Murray‑Darling Basin. At the same time, 38% of regional labour markets were rated below average or poor in March 2026, underscoring that some regional communities still face clear employment challenges even while others are performing strongly.

• Regions with strong outcomes: surrounds of Greater Brisbane, south‑west WA, Surf Coast (VIC), parts of the Southern Murray‑Darling Basin.
• 38% of regional labour markets rated below average or poor.
• Capital city regions continue to outperform the rest of the country overall.

Remote Australia: weakest labour market conditions

Remote Australia recorded the weakest labour market conditions nationally in the March 2026 RLMI. All 6 remote Statistical Area Level 4 (SA4) regions were rated poor, reflecting what the report describes as ongoing structural challenges affecting these communities. The release also introduces, for the first time, a combined Remote Australia rating, which was likewise assessed as poor, providing a single summary measure for remote labour market conditions.

New RLMI productivity indicator and long‑term trends

The March 2026 release strengthens the RLMI by introducing productivity as a new indicator. While regional and remote areas still experience weaker labour market conditions overall, the new data point to encouraging longer‑term trends, showing that productivity growth has strengthened in recent years across these parts of Australia. For education providers tracking qualification demand and agents mapping long‑term regional prospects, this suggests that some underlying economic capacity in non‑metropolitan areas is improving, even where current labour conditions remain soft.

Analysis: what the RLMI March 2026 results mean for migration and skills

For migration agents and skilled visa applicants, the RLMI’s message is clear: capital city regions are still where labour market conditions are most consistently strong, with 64% of major city labour markets rated strong or above average. Regional Australia, by contrast, is described as far more varied, with some standout pockets of strength and a sizeable group of regions rated below average or poor. This contrast may influence how applicants weigh metropolitan options against specific regional locations when exploring skilled visas such as Skilled Independent (subclass 189), Skilled Nominated (subclass 190) and Skilled Work Regional (Provisional) (subclass 491) on ImmiIQ’s visa pages.

“Labour market conditions remain stronger in Australia’s major cities than in regional areas, according to the latest Regional Labour Market Indicator (RLMI) for March 2026.”

From a regional migration perspective, the RLMI highlights that not all regional areas are alike. Regions around Greater Brisbane, south‑west WA, the Surf Coast and parts of the Southern Murray‑Darling Basin are identified as having strong labour market outcomes, while 38% of regional labour markets are rated below average or poor. For applicants considering regional nomination through states and territories listed on ImmiIQ’s state hub, this could affect which postcodes or regional centres appear more aligned with current labour demand.

Remote Australia stands out in the RLMI as the weakest labour market segment, with all 6 remote SA4 regions rated poor and a new combined Remote Australia rating also assessed as poor. For stakeholders involved in policy, workforce planning or regional development, this single sentence from the data carries weight: all remote regions are currently assessed at the lowest rating level. Lowest since September 2025. While the RLMI does not provide visa‑specific instructions, such conditions may influence how employers in remote communities engage with employer sponsorship pathways like the Temporary Skill Shortage (subclass 482) or Skilled Employer Sponsored Regional (Provisional) (subclass 494) where local recruitment is difficult.

The introduction of productivity as a new RLMI indicator is also relevant for education providers and long‑term planners. While the snapshot of labour conditions remains weaker in many regional and remote areas, the RLMI notes that productivity growth has strengthened in recent years across these parts of Australia. This single addition may signal that, over time, some regional and remote economies are building capacity, even if that is not yet fully reflected in current employment conditions. For course designers and institutions considering where future skills might be needed, such trends could inform which regional partnerships or delivery locations they explore.

Next steps: how to work with the RLMI March 2026 data

How can migration agents, visa applicants and education providers make practical use of the March 2026 RLMI findings without over‑interpreting a single release? The RLMI does not give visa decisions, but it does frame the broader labour context that underpins many policies and regional strategies.

1. 01Check RLMI ratings alongside state and territory nomination criteria on ImmiIQ’s state pages to see how strong or weak labour conditions align with current regional visa settings.
2. 02Compare RLMI‑highlighted strong regional areas (e.g. surrounds of Greater Brisbane, south‑west WA, Surf Coast, parts of the Southern Murray‑Darling Basin) with occupation demand on ImmiIQ’s occupation hub to identify potential alignment.
3. 03Use the ImmiIQ points calculator to model Skilled Independent (189), Skilled Nominated (190) and Skilled Work Regional (491) scenarios, then consider how RLMI‑rated regions might fit those pathways.
4. 04For remote‑focused strategies, factor in that all 6 remote SA4 regions and the combined Remote Australia rating are currently poor, which may influence workforce planning, local recruitment strategies and employer sponsorship needs.
5. 05Monitor future RLMI releases via Jobs and Skills Australia to see whether the productivity growth trend in regional and remote areas begins to translate into improved labour market ratings over time.

This article is for informational purposes only. Employment data is sourced from government publications and may not reflect current conditions in all regions.

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