What’s Really Driving Allied Health Hiring Challenges in Newcastle

On paper, Newcastle should be a relatively straightforward place to attract allied health professionals.

We have a strong local training pipeline through the University of Newcastle, which offers degrees across Occupational Therapy, Physiotherapy, Speech Pathology and Nutrition and Dietetics. We have the lifestyle, a significant health sector, continued population growth and housing that, while certainly not cheap, remains more accessible than many parts of Sydney.

And yet, many allied health and community services employers across Newcastle and the Hunter are still finding good people difficult to attract.

If you’ve had an OT, Speech Pathologist, Physio or other allied health role open for months without finding the right person, you’re certainly not alone.

The market has changed considerably, and in many cases the way we recruit these roles needs to change with it.

The broader employment market may have softened. Allied health is different.

Across Australia, hiring conditions have eased in a number of professions since the peak shortages of 2022 and 2023. Allied health, however, remains much tighter.

Jobs and Skills Australia’s 2025 shortage analysis continued to identify Occupational Therapists, Physiotherapists and Audiologists/Speech Pathologists as occupations affected by longer-term training supply gaps. In its March 2025 analysis, regional employers were attracting an average of just 1.4 applicants per Occupational Therapy vacancy and 2.1 applicants per Audiology/Speech Pathology vacancy.

And while recruitment conditions move from quarter to quarter, regional Australia continues to be more difficult than metropolitan areas. In the March quarter of 2026, Jobs and Skills Australia reported the national vacancy fill rate had fallen to 68.2%, with regional areas continuing to lag metropolitan markets.

That changes the role of the job advertisement.

An ad is still important, but it can’t simply be a list of what an employer needs anymore. It also has to answer the questions a clinician is asking:

Why would I leave my current role for this one? What will my caseload look like? Who will support me clinically? How flexible is the role really? Where can my career go from here?

Language such as “busy caseload”, “fast-paced environment” and “high-performing KPI culture” may be completely accurate, but without context around support, development and expectations it can sometimes discourage the very people you’re trying to attract.

We have a local graduate pipeline – but exposure matters

One of Newcastle’s advantages is that we are training allied health professionals locally.

The University of Newcastle currently offers undergraduate programs in Occupational Therapy, Physiotherapy, Speech Pathology, Nutrition and Dietetics, Podiatry and a range of other health disciplines.

But having graduates in the region doesn’t necessarily mean they’ll automatically enter the local private, disability or community services workforce.

There is some interesting evidence around the impact of placements. NSW Health’s Rural Allied Health Educator Pilot Program found that before placement, 56.2% of participating students were interested in working for NSW Health in a rural area as a graduate. After completing their placement, 85% said they were more interested in doing so.

It is an important distinction.

Exposure to an organisation, a community and a type of work can influence where someone chooses to start their career.

Placements aren’t necessarily easy to facilitate, particularly for smaller providers where supervision takes time and resources. But organisations that can create genuine student, graduate or early-career pathways have an opportunity to build relationships with clinicians well before they enter the broader employment market.

The pipeline isn’t necessarily missing. The challenge is finding ways to connect with it earlier.

Demand across the Hunter isn’t standing still

At the same time, the region itself is growing.

NSW Government population projections indicate the Lower Hunter and Greater Newcastle population is expected to grow by around 27% between 2021 and 2041. Maitland is projected to grow by approximately 49% and Cessnock by 40%.

Growth brings additional demand across paediatrics, disability, rehabilitation, community health and other allied health services. The population is also ageing, creating further demand across areas such as rehabilitation, falls prevention, home modifications, restorative care and community-based support.

Then there is the NDIS.

Research using Kismet plan-management data has highlighted significant variation in NDIS plan utilisation and identified geography, service availability and difficulties accessing appropriate providers as some of the factors that can contribute to funding going unused. Importantly, low utilisation doesn’t automatically mean there is one simple workforce issue behind it, but it does demonstrate that having funding available and being able to access a service are not always the same thing.

The practical result is that health, aged care, disability and private practice can all be drawing from overlapping clinician pools at the same time.

Many of the people you want aren’t actively job hunting

This is another important change.

The experienced clinician you’re hoping to attract may already be employed and relatively happy. They may not be checking SEEK every week and they may only consider moving if something genuinely better comes across their desk.

Permanent employment is also no longer the only option available to clinicians. Depending on their profession and experience, they may be comparing permanent roles with contracting, locum work, private practice, portfolio careers and flexible part-time arrangements.

National Disability Services’ latest workforce reporting continues to point to persistent workforce shortages and high turnover across the disability sector, alongside a decline in permanent full-time employment.

It means the real candidate market is often significantly larger than the group of people actively applying for jobs – but accessing that market requires a different approach.

What clinicians want isn’t particularly mysterious

There will always be individual differences, but the themes we hear repeatedly in the market are remarkably consistent.

Clinicians want to understand their caseload. They want genuine flexibility rather than flexibility that exists only in the job advertisement. They want good clinical supervision, particularly earlier in their career. They want managers who understand the work they’re doing. They want transparency around KPIs and billable expectations. And they want to know that there is somewhere for their career to go.

Salary matters, of course, but it isn’t always the deciding factor.

A clearly defined clinical supervision structure, realistic caseload expectations, good onboarding, access to development and an organisation that can articulate what makes it a good place to practise can carry considerable weight.

The organisations recruiting well aren’t necessarily those paying the highest salary. They’re often the ones that can explain most clearly why someone should choose them.

There is also growing pressure on the employment model

This is an area providers will need to watch closely.

From 1 July 2026, minimum award wages increased by 4.75% following the Fair Work Commission’s Annual Wage Review.

There are also substantial changes being phased into the Health Professionals and Support Services Award for health professionals covered by that award. The Fair Work Commission’s decision includes a 29.9% increase to the benchmark rate for an AQF Level 7 professional, with different increases applying across classifications, phased from 1 October 2026 through to 30 June 2030.

That doesn’t mean every allied health employee suddenly receives a 29.9% pay rise – actual impacts depend on award coverage, classification and existing remuneration – but it does mean the underlying employment cost environment is moving.

At the same time, NDIS therapy pricing isn’t automatically linked to those award movements. In its 2026–27 Annual Pricing Review, the NDIA specifically noted that therapy prices are benchmarked against broader professional markets rather than directly passing through HPSS Award increases. For Occupational Therapy and Speech Pathology, the review recommended no adjustment to the existing $193.99 hourly price.

For providers, particularly smaller organisations, that creates an important balancing act between remaining competitive for clinicians and maintaining a sustainable service model.

So, what can employers do differently?

A few things can make a meaningful difference.

Move quickly. This doesn’t mean rushing the assessment process or hiring the wrong person. It means removing unnecessary delays. If you meet someone good, keep momentum. A week of internal indecision can be enough for another employer to progress them.

Make interviews stronger, not longer. A structured interview should give you confidence in someone’s capability, behaviours and motivations. If there are technical areas you genuinely need to assess, build an appropriate assessment into the process rather than adding multiple rounds of conversations that don’t give you any more information.

Write the advertisement from both sides. Of course you need to explain what you need. But make sure you’re also answering what the clinician wants to know: salary, caseload, flexibility, supervision, team structure, travel expectations and progression.

Think about your graduate pipeline earlier. Placements, graduate programs and university relationships can become valuable long-term talent channels. The organisations candidates already know are often the organisations they’ll consider first when they’re ready to work.

Benchmark against the clinician’s alternatives, not just the clinic down the road. Your competition may be another provider, but it could equally be NSW Health, private practice, contracting, a four-day-week opportunity or a role with significantly greater flexibility. You don’t necessarily have to compete on every element – but you need to understand what you’re competing with.

Look beyond active applicants. For experienced clinicians particularly, direct sourcing matters. There are good people who aren’t applying for jobs but will have a confidential conversation if the opportunity gives them a genuine reason to consider moving.

And finally, understand what is happening before assuming the problem is “no candidates”. Sometimes it’s salary. Sometimes it’s location. Sometimes it’s the caseload. Sometimes the advertisement isn’t connecting. Sometimes the recruitment process is too slow. And sometimes there genuinely is an extremely limited candidate pool.

Knowing which problem you’re trying to solve matters.

Where ASR fits

We recruit across Allied Health and Community Services throughout Newcastle, the Hunter, Central Coast and more broadly across Australia.

A significant part of our approach is talking directly with clinicians, community services professionals and leaders who aren’t necessarily actively looking for their next role, while also giving clients a realistic view of what we’re seeing in the market.

If you’ve had a role sitting open longer than you’d like, or you’re planning future growth and want to understand the talent market before you need someone urgently – we’re always happy to have a conversation.

Sometimes the most useful place to start isn’t a job ad.

It’s understanding the market you’re hiring from.

 

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