Employment levels across the construction sector in Australia have hit record highs, new data shows.

But job vacancy data indicates that hiring activity across design and construction occupations has passed its peak albeit with vacancies remaining at elevated levels.

The Australian Bureau of Statistics has released the November edition of its detailed quarterly report on the Australian labour market.

According to the report, the seasonally adjusted number of people who are employed in construction throughout Australia increased by 36,000 to go from 1.327 million in August to 1.363 million in November.

This represents the highest level of employment throughout the sector on record (see chart).

However, job vacancy data indicates that the peak of the hiring boom has passed.

Data up to November from the Internet Job Vacancy Index report prepared by Jobs and Skills Australia indicates that the seasonally adjusted number of vacancies for design, engineering and construction occupations has dropped back over the past 12-18 months after having peaked around the middle to latter part of 2023 (see chart).

However, vacancy numbers remain at historically elevated levels (see chart).

Austin Blackburne, ANZ Technical Director at leading recruitment firm Hays, said that the current job market for across the architecture, engineering and construction (AEC) sector has stabilised but remains robust with strong demand for workers across several areas.

Speaking about the professional space, Blackburne says that hiring for architects, engineers, and project managers remains ‘steady but competitive’, with firms becoming more selective about hiring decisions.

Meanwhile, demand for construction trade workers and labourers has moderated slightly but remains at elevated levels. This is particularly the case in regions with ongoing large-scale infrastructure projects.

“The Australian AEC employment market is experiencing a nuanced dynamic,” Blackburne said.

“While employment levels have reached record highs, job vacancy rates have eased from their peaks of late 2023 and early 2024. This reflects a stabilisation in demand rather than a sharp slowdown. Activity levels remain robust, supported by continued infrastructure investments, housing demand, and significant projects in renewable energy and transport. Skills shortages have become more pronounced in the residential building sector due to candidates seeking opportunities within larger infrastructure projects …

“… The market can be described as steady, with pockets of high demand balancing the overall easing in vacancy growth.”

According to Blackburne, particular hotspots of worker demand are evident across several occupations and locations.

In terms of professional occupations, these include civil engineers, project managers and urban planners – particularly for infrastructure and sustainability-focused projects.

Turning to trades, Blackburne says that electricians, plumbers, carpenters and skilled construction workers remain critical for both residential and commercial developments.

Across major states, meanwhile, Blackburne says that:

• In New South Wales and Victoria, demand hotspots are being driven by metro transport and infrastructure projects like Sydney Metro and Melbourne Suburban Rail Loop.
• In Queensland, strong demand is being driven by population and urban growth developments in Brisbane. At this point, Blackburne says that we are yet to see increase in activity associated with Olympic-related developments.
• In Western Australia, mining and energy projects are sustaining demand for trades and site-based professionals.
• In South Australia, infrastructure projects like road upgrades and renewable energy are creating localised demand.

Stable Outlook in 2025

Going forward, Blackburne says that employment conditions are expected to remain stable going into 2025, with regional and project-specific variances.

Vacancy levels may not return to the record highs of 2023-2024, Blackburn said. However, hiring requirements will continue to be sustained by ongoing infrastructure, housing, and renewable energy investments.

Important drivers of activity will include federal and state government infrastructure budgets, a growing focus on sustainable building practices and renewable energy projects and continued urban development and population growth in key regions.

Hiring is expected to remain steady in urban centres but is expected to pick up slightly in regions linked to infrastructure and energy projects.

Largely speaking, temporary and contractor roles are expected to be a key area of hiring focus as projects seek flexibility without the risk of permanent head count.

Strategies for Success

Asked about strategies which candidates and employers can adopt to derive best possible outcomes, Blackburne recommends several actions.

For professional candidates, it can be useful to focus on upskilling in areas such as sustainability, digital engineering and project management and to leverage specialist recruiters to access high-value operations.

For trades, Blackburne stresses the need to secure relevant certifications in order to meet licensing requirements and to stand out in a competitive market.

Prioritising flexibility to relocate for high-demand projects may also be useful.

Turning to employers, Blackburn says that it is important when seeking professionals to streamline hiring practices in order to quickly secure desired candidates and to consider offering hybrid work models and professionals development opportunities in order to attract and retain suitably qualified workers.

In terms of trades, Blackburn suggests action across several areas.

These include:

• investing in workforce training and upskilling programs to mitigate talent shortages
• enhancing retention strategies, including competitive pay, stable hours, and pathways to permanent roles
• considering employee benefits to both attract and retain talent as well as how your team can continuously improve on conditions for workers, especially within the residential sector; and
• considering skilled migration pathways to fill pockets of talent shortages.

(Women now make up 14 percent of people employed in construction – up from 11 percent 10 years ago. Image source: NSW Government)

Snapshot of Australia’s Construction Industry Employment

A snapshot of employment across Australia’s construction sector can be derived from the report above.

Note that this particular data relates specifically to construction. It does not include design services such as architecture or engineering which are accounted for in other occupational categories in ABS data.

Key points are as follows.

• As mentioned above, the seasonally adjusted number of people who are employed in construction throughout Australia stood at 1.363 million in November. This represents the highest level of construction employment on record and is up by almost 80,000 (79,000) over the past two years since November 2022 (1.284 million).
• Without accounting for seasonal adjustments, the number of people employed in construction stood at 1.372 million in November. Of these, 1.176 million (86 percent) worked full-time whilst 196,300 (14 percent) were employed part time.
• More than six in ten (61.4 percent) construction workers are employed in construction services (843,500 people in total). This basically represents the trade categories (site preparation, concreting, electrical, plumbing, tiling etc.) that support either building or civil construction. A further 407,700 (30.4 percent) work in building construction whilst a further118,800 9 (8.4 percent) work in heavy and civil construction.
• The number of women in the construction workforce has increased over the past ten years from 112,500 or 11 percent of the total in November 2014 to 186,000 or 14 percent of the total as at November last year. As a result, the ratio of men to women in the construction workforce has improved from 8.3 to 1 in November 2014 to 6.3 to 1 in November 2024.