Amid shifting markets and conflicting headlines, many people have concerns about the state of engineering in Australia.
There is no question that current political, economic and technological uncertainty is impacting global markets and project pipelines. Yet with an upcoming Australian election and US tariff impacts still to play out, it may be a while before we have a clearer picture.
In this spotlight, we examine the latest job demand trends across the engineering and technical sectors and explore the key factors shaping the market as we move further into 2025.
Will demand for engineers shift in Australia?
Seek data for the twelve months to February 2025 shows a significant decline in advertised engineering jobs of 21%. Engineering disciplines experiencing the least decline were in maintenance, industrial, aerospace and automotive, although it can be argued that these fields have all been hit hard over the last few decades.
Demand for project engineers and managers, process and chemical engineers, and drafters is substantially lower than last year, with a decline of 25% or more. If we look specifically at State data, the decline in demand in Victoria (-27%) and Western Australia (-26%) were highest, followed by New South Wales (-21%), Queensland (-16%) and South Australia (-10%). A Professionals Australia report to June 2024 stated that the post-pandemic boom for engineers is waning, which is reflected in these more recent figures.
Seek explores what drives engagement among engineers, revealing that time in lieu, higher base salaries, career development, and progression were most important. Wayne Eaton, General Manager, Bayside Group, noted, “These findings align closely with what we are observing in the market – while flexibility continues to gain importance, salary and career opportunities continue to be the primary drivers for engineering professionals.”
Professionals Australia cites wage growth to June 2024 as 3.9%, although in real terms, given inflation, growth equated to just 0.1%. This was not the case across the board however, with skills in demand driving salaries up in specific roles, and growth for graduate level engineers significantly higher than for their more experienced colleagues.
“We’ve noticed a softening of wage movement this financial year, largely due to the completion of several long-term large projects,” Wayne says. There’s a sense of the market pausing, with some employers waiting for the next wave of major projects to get underway.”
Where are the opportunities for engineering employers and job seekers?
Market shifts often create new opportunities, and the engineering sector is no exception. In the immediate aftermath of the pandemic, movement was high but short-lived, with many engineering professionals switching roles quickly without long-term commitment. Now, we’re seeing a different trend as high-calibre passive jobseekers are actively exploring long-term career moves, driven by a desire for stability, career growth and improved earning potential amid rising living costs. “There’s strong interest from engineering and technical professionals,” according to Wayne, “who while not actively looking for a job will consider a move – but only for the right opportunity. It is potentially an ideal time for employers to invest in strategic hires.”
With this trending decline in jobs advertised and economic uncertainty, it is reasonable to question why there has been so much talk about an upswing in engineering. Engineering demand is expected to increase to 2030, as Australia’s 2050 net-zero commitment provides a clear roadmap for the future demand for engineers, particularly in sectors driving decarbonisation and clean energy. Furthermore, Queensland also has major infrastructure projects, including investment in health and the 2032 Brisbane Olympics, resulting in significant development in the South East Queensland. This will continue to create jobs for engineering and technical professionals.
Another opportunity lies in engaging part-time engineers as a significant number of engineer and technical experts look to semi-retire. “We’re regularly talking to highly experienced engineers looking for contingent work that allows them to scale back,” says Wayne. “It provides an opportunity to secure experts and build organisational capability, ensuring this knowledge and experience is imparted to the next generation.” Bayside Group has developed contingent employment models that comply with recent legislative changes, which enables employers to benefit flexible engagement of highly skilled professionals.
While there are promising signs in parts of the market, uncertainty remains. The outcome of the upcoming Federal Election could influence government spending on infrastructure, and global supply chain pressures may yet affect Australia’s engineering project pipeline. At this stage it’s too early to predict the full impact.
Bayside Group is here to support you with talent insights, workforce planning and access to top engineering professionals. If you’re hiring engineering talent, or seeking a clearer view of the market, get in touch today.
