Workforce gaps could undermine road infrastructure projects over the next decade

Friday, 22 November 2024

Austroads’ latest update on the Australia and New Zealand roads workforce has highlighted capability gaps that could undermine infrastructure projects over the next decade.

The forecasts by Oxford Economics Australia, identify a growing demand for skilled workers in the road construction and maintenance sector, with significant shortages expected, particularly in New South Wales, South Australia, the Australian Capital Territory, and New Zealand, in the next 1–7 years.

The report indicates that road activity in New Zealand is set to rise sharply, driven by new government priorities, increased funding and the reintroduction of the Roads of National Significance program. This will result in a 28% increase in workforce demand by 2027, requiring the sector to add approximately 700 workers beyond initial forecasts.

Australia’s road sector is expected to face localised workforce deficits. Specifically, deficits are expected in regions such as New South Wales, South Australia, and the Australian Capital Territory, where road activity is at or near its peak. The report notes that other areas across Australia will also face varying levels of pressure. As road activity remains historically high and competition for talent from competing sectors intensifies, these states and territories will need to take proactive steps to ensure they can maintain their workforce and meet the demands of scheduled infrastructure projects.

The updated forecasts underscore the need for strategic action to address regional workforce gaps.

“The report’s findings emphasises the need for a coordinated response to ensure that workforce supply keeps pace with rising demand,” Geoff Allan, Austroads Chief Executive, said.

"Investing in education, improving retention, and attracting skilled professionals will be key to meeting the rising demand. Collaboration across government and industry will be vital to ensure that the road sector is ready to meet the challenges ahead,” he added.

The latest update builds on 18 years of routine reporting by Austroads, offering insights into workforce gaps and trends in the road construction and maintenance sectors. Following previous workforce capability studies undertaken in 2006, 2009, 2013 and 2017, the Australia and New Zealand Roads Capability Analysis 2022-2032 was released in September last year, offering insights on how skills demand will form for road agencies over the coming decade.

The decision to deliver more frequent updates comes in response to the sector's rapidly changing conditions, including rising road activity and increased competition for skilled workers from other industries. The first half-yearly update was published in March this year, aiming to help stakeholders stay informed and adjust their strategies accordingly.

The second half-yearly update report is accompanied by an interactive dashboard which allows users to focus on specific skills and occupation profiles in each jurisdiction.

Download the Australia and New Zealand Roads Capability Analysis: October 2024 Update.

Data Dashboards: October 2024 Update

The quantitative data used in the study is available through interactive dashboards which allow users to focus on specific skills and occupation profiles in each jurisdiction. The dashboards will be updated with new workforce data and forecasts through 2024 and 2025.

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