Insights from the latest Engineering Labour Market Overview by Engineers Australia has shown demand for engineers holding steady despite market shifts.
After a six-month decline to March 2024 due to migration return, government project changes, and recruitment efforts, March saw a ten per cent rise in vacancies followed by slight declines in April and May.
There were 6,293 engineering vacancies recorded in May, with civil engineers comprising 39.7 per cent of all ads.
Engineers Australia Acting Chief Engineer Bernadette Foley said job vacancies were still 16.8 per cent higher than pre-COVID levels, with demand staying strong in key sectors like construction and infrastructure despite recent bumps caused by post-pandemic migration, supply chain issues, and public sector slowdowns.
Foley said: “Skilled migration has been a game changer for the engineering sector, with permanent settlements jumping by over 70 per cent from 2022 to 2023 – it’s filling critical gaps left by COVID-era shortages, and temporary visas are adding to the mix.”
Temporary skilled migrant engineers increased by 34.8 per cent over the same period, surpassing pre-COVID levels.
However, Foley noted that regions continued to feel the strain in engineering talent shortages, with vacancies high across the country but some areas – such as the ACT, Tasmania, and WA – feeling the pinch even more.
She added: “These hotspots highlight the need for targeted solutions to balance the talent gap.”
The overview also found that the value of engineering construction had reduced 27 per cent from its 2022 peak to $25.1 billion in March.
Foley explained that the post-COVID slowdown had hit engineering construction, reflecting the end of COVID stimulus spending, shifting the focus towards more stable demand.
She said: “Clean energy and infrastructure will drive future skills demand – as Australia pushes towards decarbonisation, demand for engineers with skills in digital technology, sustainability, and leadership will surge.
“The clean energy transition and infrastructure projects are set to keep the profession thriving long-term.
“The short-term project pipeline faces uncertainty – while there’s plenty of work now, the next six months could see gaps in sectors like commercial buildings, rail, and roads.
“Businesses are gearing up for a slowdown, highlighting the need for strategic planning to bridge potential downturns.”