Changes to the Recruitment market

Add Staff Recruitment Market Changes

Changes to the Recruitment market

2021 has resulted in one of the most challenging recruitment markets to date for employers across construction and trades industries.

Times have changed (rapidly). Traditional job advertisements are no longer yielding the volume of suitable candidate. 
Whilst there is consistent growth in employment opportunities across most sectors, sourcing the right employees is becoming progressively more challenging.

What has changed in the candidate market?

Career marketplace heavyweight SEEK have provided the following marketplace insights in the SEEK Employment Report October 2021:

  • Highest number of job ads posted in a month in SEEK’s 23+ year history. 
  • SEEK job ads were up by 63.2% in October 2021 year-on-year (y/y) and were up 44.0% compared to October 2019.
  • Applications per job ad declined by 5.4% m/m, and 44% year on year.
  • All Australian states and territories show growth in job advertising compared to October 2020 and 2019 (pre pandemic).

These statistics provide confirmation that there is an increase in recruitment activities in Australia, however applications for roles continue to decline.

What has changed in the construction industry?
Firstly, the industry is currently experiencing changes in demand as a follow-on affect from the pressure the pandemic put on the construction sector, of these include:

  • Increased investment in projects, housing and infrastructure
  • Delays in projects during lockdowns have seen a push for progress
  • Decrease in the industry workforce due to relocations, closed boarders and migrating workers

The Construction Skills Queensland 2021/2022 Industry Outlook provides further evidence of the increased skills shortage we are currently experiencing. In Queensland alone, residential building approvals are 20% above normal levels coupled with over $9.9 billion in non-residential projects approved in Queensland, the building sector is feeling the burden of the labour deficit.

What is the projected impact on the construction industry?
Some consumer and economic changes we are already starting to see in the construction sector are:

  • Insufficient number of skilled workers available to keep up with construction and infrastructure demands
  • Increase in jobseeker demands, including work from home flexibility 
  • Additional costs to employers including hourly rates and benefits

This decrease in the labour force and increase in project approvals is causing the perfect storm in terms of timely project delivery.

Are there any solutions to help mitigate the impact?
The long term solution to this challenge lies in training and upskilling the future workforce of Australia, along with the opening of borders, however this will of course take time.

In the meantime, the Add Staff team have been recommending employers future plan and forecast their staffing needs as best they can to commence recruitment activities in advance, leaving a longer lead time to source new team members. 

We also recommend considering candidates that may require extra training to complete their role, if you can find a person who is a great fit for your team, it might be an opportunity to invest in the training necessary to secure a great potential employee. 

Lastly, if you find a candidate you are interested in, we recommend moving quickly and to act immediately to proceed through the recruitment process.

If you are interested in learning more about our recruitment or mentoring services, or would like additional information please contact us on   1300365606 or email info@addstaff.com.au.


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