Engineering recruitment market commentary – January 2025

By David Armstrong

The engineering recruitment market in Australia is experiencing some dynamic changes driven by advancements in technology, sustainability initiatives and economic shifts. Key sectors such as manufacturing and operations, building services and technology are witnessing increasing demand and present great opportunities for engineers with relevant skills.

Employers are responding to rising living costs by offering competitive salaries and improved benefits. A recent survey showed that 64% of employees expect pay increases in 2025, while 85% believe past raises did not match inflation rates. Employers are also enhancing workplace flexibility to attract and retain talent.

Observations by Sector

Engineering & Manufacturing Operations

The Australian manufacturing sector is undergoing a significant transformation, driven by the adoption of Industry 4.0 technologies. This shift emphasises the integration of digital innovations such as the Internet of Things (IoT), artificial intelligence (AI), and advanced automation to enhance productivity and efficiency. Consequently, there is an increased demand for engineers proficient in these technologies to design, implement, and manage smart manufacturing systems.

Engineers specializing in sustainable practices and renewable energy are particularly sought after, aligning with Australia’s net-zero targets. Current roles which we are working on include Operations Managers, Engineering Managers, Maintenance Managers, Project Managers, Aerospace Engineers, Structural Engineers, Electrical Engineers and Electrical & Mechanical Service Technicians, thus there remains a good spread of the types of roles which we’re seeking Engineers to fill. If you are looking to secure a new role, or alternatively, in search of a strong candidate to fill a void at your company, we would encourage you to reach out ASAP, as both candidates and job opportunities are disappearing just as fast as they are appearing.

On a positive note, there was an influx of new roles from clients in early December, with positions ranging in seniority from CEOs to graduate engineers with start dates in March, perhaps reflecting positivity in hiring plans.

Similar to last quarter, we have continued to see demand for contract positions from our clients and have been able to fill these roles with quality candidates.

Building Services

In the building services sector, the focus is on sustainable and energy-efficient design, driven by both regulatory requirements and market demand for greener buildings. This trend has led to a heightened need for engineers specialising in sustainable building practices, energy modelling, and the integration of renewable energy systems into building designs. Additionally, advancements in building information modelling (BIM) and smart building technologies are creating opportunities for engineers skilled in these areas.

Take advantage of this candidate-driven market and secure a top role in ACT, VIC, NSW, or QLD. We’re currently hiring Contract Managers, Bid Managers, BMS Service Technicians, Mechanical and Electrical Graduates and Project Managers with opportunities for increased salary, improved terms, and enhanced benefits.

IT and Technology

The IT and technology sector in Australia continues to experience some growth, with an improved employment outlook for 2025. According to a recent industry Employment Outlook Survey for Q1 2025, the Australian IT sector has a net employment outlook of +27%, leading all other sectors. This positive trend is driven by increased investments in digital transformation initiatives across various industries. Consequently, there is a high demand for Engineers with expertise in cloud computing, cybersecurity, data analytics and software development as businesses continue investing in digital transformation initiatives.

2025 has begun positively in our technology recruitment team, having successfully placed some talented individuals into exciting, complex roles already. We are also seeing a slight upswing in technology roles becoming available. Many job seekers are contemplating expanding their qualifications and setting a new direction in their careers; many are asking their recruiting network what are the best or most popular courses/career direction; they’re asking what skills are the most sought after in the 2025 job market and what are employers seeking right now. We are also seeing employers asking us what kind of talent is available in the market currently. We welcome these questions from both employers and employees as it opens conversations that we can facilitate the best matches for both employers and job seekers in the shortest time possible.

Reach out and let’s connect to begin conversations and work on fulfilling opportunities for both employers and job seekers. As the current job market is still fiercely competitive, the more conversations and insight into the current job market conditions you have, the more prepared you will be when the opportunities present themselves to hire the right employee(s) or be hired.

Generally across all these sectors, there is a notable emphasis on sustainability and technological innovation. Employers are seeking engineers who can contribute to energy efficiency, sustainable practices, and the integration of advanced technologies into traditional engineering processes. Additionally, the competitive labour market has led many businesses to plan for salary increases and offer more flexible working conditions to attract and retain top engineering talent.

Growth in Renewable Energy and Infrastructure Projects

Australia’s commitment to net-zero emissions by 2050 is driving a surge in renewable energy projects, including solar, wind, and battery storage. This shift is creating increased demand for engineers specialising in sustainable energy solutions. Additionally, significant investments in infrastructure are underway, with the federal government allocating $120 billion over the next decade to projects in transportation, water supply, and urban development. Although the metro centres remain hubs for engineering roles in IT, building services and advanced manufacturing, don’t disregard regional areas due to projects such as the $2 billion green aluminium credit scheme that is creating job opportunities in regional areas like Gladstone and across Queensland, focused on renewable energy and sustainable industries.

Challenges in Workforce Supply

Despite the growing demand, Australia faces challenges in training a sufficient number of engineers to meet industry needs, particularly in defence technology and decarbonisation efforts. The current graduation rate for engineers is only half of what is required, underscoring the need for increased focus on STEM education and training. These trends suggest a dynamic and evolving engineering job market in Australia, with significant opportunities for professionals equipped with relevant skills and expertise.

Tips for Engineering Job Seekers

For Australian engineers exploring new opportunities, here are strategic steps to consider:

Upskill in Emerging Technologies
• Pursue certifications or training in areas like cloud computing, AI, data analytics, and BIM to align with market demand.
• Platforms like LinkedIn Learning courses or TAFE courses can help enhance these skills.

Get to know Specialist Recruiters
• Engage with specialist recruitment agencies (such as ours) that cater to engineering roles to identify tailored opportunities.

Explore Regional Roles:
• While urban centres dominate, regional areas are becoming hotspots for renewable energy projects and infrastructure development. Be open to relocation for long-term career growth.

Optimise Networking
• Attend industry events, webinars, and trade fairs to connect with potential employers.
• Maintain an updated LinkedIn profile highlighting relevant skills, certifications, and projects.

Negotiate Competitive Packages
• Research salary benchmarks for your role and location to ensure that you are securing fair compensation.