Australia’s construction sector added 33,900 workers to its payroll in the three months to August, new data reveals.

And the employment market remains active notwithstanding a decline in job vacancies.

Released on September 24, detailed labour force data from the Australian Bureau of Statistics indicates that the seasonally adjusted number of people who are employed throughout the nation’s construction industry increased by 33,900 over three months to go from 1.319 million in May to 1.353 million in August.

This represents the third highest level of construction employment on record.

To a degree, vacancy data from Jobs and skills Australia indicates that hiring activity has trended downward over the past year.

In fact, the data shows that seasonally adjusted vacancies for construction managers, engineers, construction tradespeople and construction labourers are at or near their lowest level in four years.

However, current vacancy levels remain elevated compared with those seen prior to COVID (see chart).

Austin Blackburn, Senior Regional Director – Construction, at specialist recruitment and job employment agency Hays, said that the employment market in construction remains strong.

Despite a hiring slowdown earlier this year, Blackburne says that confidence is returning and the market is stabilising.

“Employment in construction remains very strong, with ABS data showing 1.353 million people employed in August – the third-highest level on record,” Blackburne said.

“This reflects the very large pipeline of projects already underway, particularly in infrastructure, which is keeping people in work and driving demand for skills.

“On the other hand, earlier this year we saw hiring activity and job vacancies soften, with demand for managers, engineers and trades hitting multi-year lows as higher interest rates and tighter financing weighed on new project starts. However, over the past couple of months sentiment has begun to improve. We’re seeing more confidence return to the market, with signs of stabilisation in private sector demand and government infrastructure spend continuing to support activity.

“Overall, the sector is still extremely busy delivering projects, with early signs that forward-looking hiring is beginning to recover and strengthen after a softer patch.”

Infrastructure driven boom

According to Blackburne, much of the current activity is being driven by infrastructure and energy transition projects.

Skills in demand include civil engineers, project managers, surveyors and trades linked to roads, rail, and renewable energy.

Hays is also seeing a strong need for skilled tradespeople including electricians, plumbers, and plant operators, particularly as governments roll out large transport projects and the shift to clean energy gains pace.

In terms of locations, the major capitals like Sydney, Melbourne and Brisbane are driving demand through infrastructure investment.

Meanwhile, regional areas are tied to renewables and mining in areas such as Queensland, Western Australia and regional New South Wales.

All of these areas are crying out for talent, Blackburne said.

Bright Outlook

Going forward, Blackburne is optimistic about the near-term future.

“Looking ahead over the next six to twelve months, employment in the AEC sector is expected to remain high, though hiring and vacancy activity is likely to remain steady rather than rise sharply,” he said.

“The sector continues to deliver a large pipeline of infrastructure projects, supported by government investment, while private sector activity is stabilising after earlier slowdowns in housing and commercial starts.

“Employers are likely to be selective in adding headcount, but recent signs of improved confidence suggest forward-looking demand could gradually strengthen. The key factors to watch will be interest rate movements, the pace of housing approvals, and ongoing government commitments to infrastructure and the energy transition. These will determine whether hiring activity picks up, remains stable, or softens.”

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