Gough Recruitment Market Update: Construction Sector in Australia, Hong Kong, and Singapore.
Despite a mixed growth picture, opportunities abound across the construction industry
The construction industry across Australia, Hong Kong, and Singapore faces various challenges, including the digital revolution, inflation, supply chain disruption, and labor and skills shortages.
However, the medium-term outlook remains positive. Some of these challenges are positives for prospective candidates. For instance, the labor and skills shortage means that today there’s a huge range of opportunities available across various areas of the construction industry.
Read on to find out the current state of the construction jobs market and insights on emerging trends and opportunities for job seekers in the industry.
Global perspective
Recession fears overblown, but challenging times ahead
Although concerns about a potential global recession have been somewhat exaggerated, the construction sector in Asia and Australia is undoubtedly experiencing a period of volatility. Factors such as rising inflation, supply chain disruption, and labor shortages are contributing to increased uncertainty in the industry. Data reveals that 64% of surveyed construction markets faced a skills shortage in 2021, including those in Hong Kong, Seoul, and Perth.
Construction sector set to avoid stagflation
A portmanteau made up of the words “stagnation” and “inflation,” stagflation is a combination of economic stagnation and high inflation. It’s bad news.
Despite the numerous challenges, the construction sectors in Asia and Australia are expected to avoid stagflation and continue growing. However, this growth will likely be accompanied by increased volatility, including a higher number of construction industry bankruptcies.
Australia
Construction industry sensitive to inflation and supply chain volatility
In Australia, the construction sector is particularly sensitive to inflation, especially rising raw goods costs. Supply chain volatility and rising interest rates are also adding pressure to the industry. The construction industry in Australia is expected to contract by 2.6% in real terms this year.
More construction sector companies going bankrupt
Several major construction companies in Australia, such as Porter Davis Homes and Lloyd Group, have gone bankrupt. Other firms are cutting jobs, with Simonds Group announcing a reduction of 69 positions.
Despite these development, there are several reasons for optimism in Australia’s construction sector. The labor market remains resilient, with house price growth continuing and housing supply constraints persisting. Additionally, the number of households is increasing, creating further demand for construction.
Australia continues to face staff shortages across the construction industry. For instance, Western Australia is marketing in Ireland and the UK to attract skilled workers to fill gaps in the local market.
A look at construction segments:
- Energy and Utilities:
Renewable energy projects and infrastructure development are driving jobs growth in the Energy and Utilities sector. - Infrastructure:
The Australian government is investing heavily in infrastructure construction, creating numerous job opportunities. - Institutional:
The recent announcement of a nuclear submarine program will create thousands of jobs in the construction sector. - Commercial:
While commercial construction has faced challenges due to the pandemic, demand for new office spaces and retail developments is expected to pick up as the economy recovers. - Industrial:
The growth of e-commerce and the need for modern logistics and manufacturing facilities are driving demand for industrial construction projects.
Hong Kong
Ending of restrictions boosts demand for skilled construction workers
Hong Kong’s construction sector faces similar challenges as Australia, with skills shortages, inflation, and supply chain disruptions impacting the industry. However, rapid economic growth following the ending of Covid-19 social-distancing restriction at the beginning of this year has boosted demand for construction jobs.
Demand for skilled professionals in areas such as technology, automation, and artificial intelligence is particularly high.
Singapore
Acute labour shortage
Like Australia and Hong Kong, Singapore’s construction sector is experiencing challenges related to skills shortages and supply chain disruptions.
The Lion City’s construction worker shortage is pressing “with almost one position unfilled for every labourer hired,” reports the Straits Times. Skilled professionals are also in high demand. As the economy recovers, construction job opportunities in areas such as infrastructure development, commercial projects, and residential construction are expected to increase.
Despite what will be a bumpy period ahead in the short term, the construction industry’s medium-term outlook in Australia, Hong Kong, and Singapore is much brighter.
For candidates with the right skills and a willingness to be flexible, numerous opportunities await in the construction jobs market. Skills shortages and inflation mean candidates are in a strong position to negotiate over pay and conditions.
Companies are also paying more attention to up-skilling their workforces, so a greater emphasis is being placed on internal progression.
Roles in particularly high demand are site manager, project manager, construction manager, architect, and surveyor. Job seekers in these areas are able to capitalise on growing demand for skilled professionals in the industry.
By staying informed about the latest trends and developments in Asia and Australia’s construction sectors, candidates can best position themselves for success in this job market.
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