Hays has published its annual report into salary and industry results, finding that the recovery of the engineering sector is uneven, with some areas struggling to fight their way out of the Global Financial Crisis-induced slowdown.

 

The report found that ‘Engineering demand mirrors the construction industry, with the focus on major civil/infrastructure projects. The architecture industry experienced a tough year, with key appointments the main centre of vacancy activity.’

 

Hays found that major government supported infrastructure projects had contributed to maintaining market stability, with salaries remaining steady with an expected increases in 2011-12 in response to the emerging skills shortage.

 

The report continues, saying ‘The impact of flooding across the state will however lead to significant investment in major infrastructure projects, particularly roads, and we are already seeing a significant uplift in demand for candidates with experience in civil construction and engineering. The mining boom is also fuelling demand, with major LNG projects and mine expansions in the planning stage.’

 

The report also found that Western Australia’s construction sector had remained in a healthy state owing to the major mining and resources projects such as the Pluto LNG site and Worsley Alumnia. The report found that ‘While such construction projects are now drawing to a close, others are at final tender stage and we are already seeing a significant increase in staffing requirements which will have an inflationary effect on salaries.’

 

The report found that ‘alongside the demand from the mining sector, the state is also experiencing a significant shortage of construction and engineering professionals as well as trades staff across numerous disciplines. Employers have responded by increasing hourly rates and salaries and this flexibility will remain in the face of a significant skills shortage.’

 

Skills in high demand across Australia’s public sector include Civil Design Engineers, Project Engineers, Building Surveyors, Town Planners and Project Managers for short-term contracts to finalise the delivery of Nation Building projects. Following the Queensland floods, funds were diverted to remediation work, and thus construction jobs have fallen and we have seen an increase in candidates all vying for the same positions and depleted salaries.

 

The report also concluded that demand for mining engineers has reached critical levels throughout the country as Australia’s booming resources and mining sector  'spearheads our economic recovery'. The report  warns that a significant challenge is arising from the shortage of appropriate skills which could "yet cast a shadow over the resource sector".

 

It notes that the over the last year, skills shortages have begun to seriously effect the resources sector as expansion projects and aggressive hiring activity has reduced Australia’s candidate pool. New mining operations have driven the labour demand for experienced mine engineers across the country, in both underground and open pit operations.

 

The report comes as the liquefied natural gas industry continues to place increased pressures on labour demand, with new operations starting across the country, including the $16 billion Gladstone project in Queensland.

 

The report noted that  "Heavy engineering firms are also very active, and seek senior strategic candidates in response to confidence and the higher value of commodities."

 

Additional labour demand is evident in localised trends. In Western Australia, environmental, business improvement and maintenance staff are needed. Along with Victoria, WA  also lacks surveying staff, underground staff and Geotechnical Engineers.

 

The discrepancy in wages between Western Australia, which typically outstripped Eastern state counterparts, and the rest of Australia is beginning to contract, placing additional pressure on the WA labour market.

 

The report stated ‘In South Australia, salary levels are still a few steps behind Western Australia and Queensland, but this is offset by the state’s lower living costs, closer proximity of projects to the capital city and attractive FIFO arrangements.’

 

The report  found  the resources industry is becoming ‘more receptive’ to international applicants, particulary in areas of mining and geotechnical engineering.

 

The full report can be requested from Hays here