Australia and New Zealand roads workforce capability forecasts

The Australia and New Zealand Roads Capability Analysis: October 2024 Update provides an update to the original report published by Austroads in September 2023.

Problem – Growing Workforce Pressure in the Road Sector

The Australia and New Zealand Roads Capability Analysis 2022–2032, delivered by Oxford Economics Australia, highlighted increasing pressure on the workforce capacity within the road infrastructure sector. The report identified that many regions are experiencing growing skills shortages, with some facing severe capability gaps that may hinder the achievement of service objectives. There is also concern that certain jurisdictions, although not facing acute shortages, are still at risk of struggling to maintain their existing workforce due to competitive pressure from other sectors. These workforce issues are compounded by a shortage in specific roles and technical competencies, suggesting a systemic problem in attracting and developing talent in the road construction and maintenance sector.

Challenge – Meeting Rising Labour Demand

One of the key challenges identified is the sector’s ability to keep pace with rising labour demand, particularly in the wake of evolving policy and budget decisions. In New Zealand, for instance, the National Party’s reprioritisation of road construction, confirmed through the release of the Government Policy Statement (GPS) on Land Transport 2024, has significantly raised the projected level of road activity. The re-introduction of the Roads of National Significance program and increased funding for road maintenance have pushed total road activity expectations to NZD$5.6 billion in FY27—well above the NZD$4.4 billion previously forecasted for FY25. As a result, the projected labour demand has risen from 5,600 people in FY23 to 7,200 by FY27. This represents not only an upward revision in numbers but also an acceleration in required workforce expansion that will be difficult to meet without coordinated action.

Solution – Strategic Workforce Development and Monitoring

To address the growing workforce capability gaps, the original report proposed several targeted strategies. These included boosting productivity through training and innovation, reducing workforce attrition, attracting skilled labour from adjacent sectors, encouraging education pathways into roads-related fields, and considering policy reforms to bring in more skilled migrants. Building on this, the latest update incorporates newly available data from FY23 and assumes that workforce demand and supply were balanced in that year, setting a new baseline for future analysis. The report also extends the forecast horizon to FY33 to give stakeholders a longer-term view. Accompanying the report is an updated Tableau dashboard that provides an interactive way for Austroads members to monitor labour trends and projections. Together, these tools and recommendations are designed to help stakeholders respond proactively to workforce challenges and align capability development with the expected surge in road infrastructure activity across both countries.