The Importance of Migration in Australia’s Construction Market
Migration plays a crucial role in the Australian construction market and is an important component for Australia to add talent into its labour market which allows workforce growth. New migrants are one of the main contributors to employment growth within the Australian workforce. The Australian government has various programs to attract skilled talent to sectors facing shortages, including construction. These programs are designed to ensure that the industry has access to the talent needed to complete major projects and support economic development.
Over the past two decades, migration has increasingly underpinned employment growth in certain key sectors, including construction. In June 2024, Australia’s workforce stood around 14 million, which was 12 percent increase over five years. New migrants accounted for over 40% of these additional jobs.
Migration addresses talent shortages within the construction industry in Australia. Previously due to the cyclical nature of construction projects and an aging workforce, the market was very boom and bust due to supply and demand. However, migrants within the construction sector help fill these gaps by providing a steady supply of highly skilled labour.
These newly awarded permanent resident visa holders bring a variety of skills and expertise. This enhances the overall productivity and efficiency of the construction industry. These talents often possess specialised skills that may be in short supply locally and specific disciplines that are often required on many of the construction projects Australia wide.
Migration contributes to economic growth by increasing the available talent, which in turn boosts productivity and economic output. As a result, the construction industry benefits directly from this as it supports the development within infrastructure, building and Power Generation projects, all which are essential for economic expansion. As Australia’s population grows, then there is a continuous need for infrastructure development, including roads, bridges, schools, hospitals, and housing. So this is essential in meeting these demands, ensuring that infrastructure keeps pace with population growth.
Overall, migration is one component to the Australian construction market , addressing labour shortages, bringing in necessary skills, and supporting economic and infrastructural development. At Jackson Scott, we are working with contractors, consultants and PMC’s. So, if you are on your migration journey to Australia and need some help understanding the local market, please do get in touch.