With investment in major infrastructure projects at the centrepiece of the Federal Government’s plan for Australia’s economic recovery post COVID-19, infrastructure activity will approximately double over the next three years, peaking at $52 billion in 2023. 

Though this record investment will serve to stimulate the economy, create new opportunities for local business and employment, it also presents pressure in the capacity of the market to meet this growth. In fact, according to Infrastructure Australia’s first  Infrastructure Market Capacity Report, the spending blitz could result in one of the worst skills shortages in decades. 

It is forecast that in mid-2023, the employment in the infrastructure sector will need to grow from 183,000 people today to more than 288,000, with one in three jobs advertised going unfilled. The peak of demand for skills is 48 percent higher than supply, and meeting the demand would require annual growth of 25 percent over the next two years. That’s more than eight times higher than the projected annual growth rate of 3.3 percent. Furthermore, 34 of the 50 public infrastructure occupations identified are potentially in shortage. 

Jobs with likely shortages 

At the peak of demand between now and 2025, Infrastructure Australia predicts a shortfall of 70,000 scientists and engineers, 19,000 project management professionals and 28,000 trades and labour workers. Of these groups, jobs predicted to be most in demand include building surveyors, civil engineers, electrical engineers, engineering managers, geologists, geophysicists and land surveyors. 

Victoria, Queensland and Tasmania will experience the greatest risk of shortage. At points between 2021 and 2025, all three jurisdictions will require a workforce that is approximately twice the size of the projected supply available 

The supply challenge for employers 

The skilled labour shortage in Australia has been an issue for many years, but industry experts say the pandemic has exacerbated the problem with disruptions to training and the sudden suspension of skilled migration due to border closures. These shortages are typically difficult to address through short-term measures because they require technical expertise and long training periods. Couple this with the rapid infrastructure investment, and employers will need to focus much of their efforts on attraction and retention of their workforce. 

Streamlining the hiring process 

To meet anticipated demand, Bayside Group National Manager Wayne Eaton says employers will need to adjust their traditional hiring strategies in order to address the challenges in maintaining labour supply. 

“Because there’s such high demand and a short supply of candidates, one of the best things employers can do is ensure they are responsive during the hiring process,” he says. “It’s a competitive market, so a candidates are likely to have several job offers and opportunities available to them, being made to them at any one time, and if an employer isn’t as responsive during the selection and onboarding process, they potentially run the risk of a candidate going to a competitor who has responded faster.“ 

In this way, Wayne explains that bringing on a third-party recruitment agency to assist with streamlining this process can be extremely beneficial. 

“While working with us, our clients know that we’ll keep the hiring process moving at a pace that allows us to source and secure the talent they need,” he says. “We also communicate with applicants throughout the duration of the process, which is so important for keeping them engaged and interested in a potential offer.” 

Embracing transferable skills 

Furthermore, Wayne says it’s important for employers to be open minded about the experience that potential employees can bring to a role. Though many employers have very specific requirements they want an individual to possess, this simply may not exist in such a candidate short market. 

“So often, employers will want someone who has experience working on two or three very specific projects, but when there’s a shortage of candidates they will likely need to focus more on transferable skills,” he says. 

“While a candidate might not have the exact experience an employer is looking for, they might have the transferable skillset that makes them an ideal candidate. They could be adaptable, a fast learner and have the kind of attitude that allows them to thrive in the role.” 

“By identifying these qualities within certain candidates, we can place them within the roles and company cultures where they can perform their best.” 

Changing sector perceptions 

Despite unprecedented demand, Roads Australia CEO, Michael Kilgariff says employers are having difficulty attracting and retaining suitable entry level workers to the sector due to perceptions around excessive work hours and fatigue, poor mental health outcomes travel and inconsistent work. 

“These negative factors make it difficult to attract and retain talented individuals from diverse backgrounds to pursue careers in construction,” he says. 

“To attract a sustainable workforce, we must ensure our people feel they can be innovative, experience personal safety, have opportunities for personal growth and feel included and valued.” 

By cultivating a healthy work environment, and promoting this within Employer Value Proposition, organisations can improve both their attraction and retention rates. 

If you’re looking for staff within the infrastructure, engineering and construction sectors, contact Bayside Group today and see how we can help.