As Australia navigates an increasingly competitive job market and small businesses fight for top talent, a recent study sheds light on which cities offer the best – and worst – pools of potential workers. The study* analysed the talent landscape of Australia’s 50 most populated cities by crunching the numbers on 17 factors related to employability, economy, and wellbeing. The findings reveal a striking divide between urban powerhouses and smaller regional centres.

So, where in Australia will businesses find the most promising and ready-to-work talent pool? And which cities are facing the biggest challenges when it comes to worker quality and availability?

Canberra-Queanbeyan topped the national rankings with a Talent Pool Score of 88.31 out of 100. While often overlooked in favour of Sydney or Melbourne, the nation’s capital emerged as a leader across the board. With the highest median income ($1,613.42), a strong rate of tertiary education (47.9%) and low unemployment (3.18%), Canberra is proving itself to be more than just a government town.

“Canberra’s position at number one confirms the strength and stability of its workforce,” said Sam Allert, CEO of Reckon. “It’s clear that highly educated workers with secure incomes make for a thriving business environment.”

Perth placed second with a Talent Pool Score of 85.33. The Western Australian capital enjoys a healthy median income ($1,584.78), one of the highest rates of labour force participation (69.7%), and a balanced economy outside the strong influence of the mining sector in recent years.

In third place, Darwin surprised many with a score of 84.21. This compact northern capital boasts the highest participation rate among young workers (75.4%) and a low unemployment rate (3.08%), indicating a highly engaged and economically active population.

Sydney and Melbourne rounded out the top five, with Talent Pool Scores of 83.3 and 81.74 respectively. While both cities boast high numbers of young, working-age residents (679,700 in Sydney and 657,700 in Melbourne), their higher unemployment rates and slightly lower education levels compared to Canberra kept them from scoring higher.

Beyond the usual metropolitan hubs, some regional centres managed to crack the top ten. The Gold Coast-Tweed Heads region placed seventh with a score of 70.44, and Toowoomba came in eighth with 65.29. However, lower levels of tertiary education and smaller workforces held them back compared to capital cities.

Mackay and the Sunshine Coast also made the top ten, posting strong incomes and participation rates, but they, too, lagged in educational attainment – a common theme across regional Australia.

On the flip side, some regional areas are grappling with worrying workforce statistics.

Coffs Harbour ranked dead last on the list, with a mere Talent Pool Score of 26.74. With only 8,900 young workers, the lowest labour force participation rate (52.2%) and an extremely low level of tertiary education (24.2%), the city presents significant challenges for employers looking to expand or attract skilled workers.

Other cities rounding out the bottom ten include Devonport (39.55), Victor Harbor-Goolwa (40.08), and Hervey Bay (44.41). These locations tend to suffer from limited access to higher education institutions, higher unemployment, and aging populations, all of which restrict workforce growth and dynamism.

While Canberra ranked highest for both income and tertiary education, Sydney led in terms of total number of young workers and residents without long-term health issues, suggesting a younger, healthier population. Darwin, meanwhile, boasted the highest labour force participation rate (75.4%), while Albany in Western Australia clocked in with the lowest unemployment rate in the country at just 1.49%.

On the other hand, several centres lagged dramatically. Coffs Harbour had the lowest median income ($1,129.66) and the poorest worker participation, while Hervey Bay and Bundaberg struggled with the highest unemployment rates (6.58%).

These indicators directly correlate to the ability of businesses to hire locally and grow sustainably. For entrepreneurs and startups, it’s not just about where you want to live, but where you’re most likely to find engaged, skilled team members.

With remote work becoming more established and regional migration trends reshaping parts of the country, the importance of understanding local talent pools has never been greater.

Australia’s sprawling geography means that no two regions are the same. While coastal hubs like the Sunshine Coast offer lifestyle-related perks, economic opportunity doesn’t always follow. Conversely, regional capitals like Darwin and Toowoomba offer depth in labour force but may require more cost-benefit analysis when it comes to business viability.

*Commissioned by accounting software company Reckon,

www.reckon.com/au/small-business-resources/startup-cities