The structural changes in the labor market caused by globalization, modern technology that is accelerating to unpredictable proportions, as well as financial and economic crises and aging population, have all resulted in high permanent unemployment, leaving governments around the world in quite of a struggle, without the prospect of them achieving any noticeable results anytime soon.
Inequality and unemployment are the biggest challenges the world is facing today. Unemployment research has been gaining importance in recent decades and has become a very important political issue.
One of the domininant GDP boosters
The increase in the dynamics and volume of economic activity throughout the construction and property sectors is an important factor that provides an incentive and secures positive trend of economic indicator including employment. Namely, because the construction and property sector generate nearly 8.1% of GDP making them ones that are crucial for the sustainable and healthy economic growth of the country. The construction industry and industry of construction materials production are significant segments of the economy of every country in the world and Australia is not an exception.
With 1.1 million workers employed by the construction industry by the end of 2016, the question is will the trend continue in the positive direction?
According to the last Australian Industry Report, the second most generous contributor to the national GDP with the amount of $134.2 billion in the previous years, it is predicted that the employment in the construction industry will remain as one of the dominant employment sources with a steady rise that led up to a total of around 9% of new jobs in the period of past 5 years.
Predictable and stable financial market condition
That’s why more and more you can see the government economic official experts making statements on the national frequency providing assurance to the business and general public of the stability of the economic and financial system. In the case of Australian officials, past few years, and by the looks of it, in at least next couple of years, they will not have such a hard job convincing. Historically low inters rates, kept on the level of 1.5% during 2017 by the RBA, they are continued in 2018, with no expectations of increment.
“A significant number of public-sector–funded projects are expected to be brought to market” by the end of 2020.
Knowing that we can assume that construction and property sector will remain at the top the as the third biggest employer, right behind the Retail and Trade, Healthcare and Social services in 2018, and years to come.
Capacity for growth and development
The steady growth of the construction industry of around 18.6% in the last couple of years, will continue a positive trend in 2018. That being said, the trend of the increase of the volume and demand for the construction sector related jobs, seen through an increase of new jobs ads from around 30% all the way to the level of 94%, speaks for itself. If the 3 year period, analyzed up to the October of 2017, the overall impression is made complete when the 20% rise of new jobs adds in real estate and property is noticed.
With an annual advertised salary of up to around $105.000 in the past couple of years, construction and property market are sure to tap into some part of that employment pool that should put that more than $25 billion worth of construction equipment imported to Australia in the previous years.
Seek Insight: https://insightsresources.seek.com.au/fastest-growing-jobs-on-seek-in-2017
The Guardian: https://www.theguardian.com/australia-news/2017/jun/06/reserve-bank-keeps-interest-rate-on-hold
Australian Employment - Department of Employment: https://docs.jobs.gov.au/system/files/doc/other/australianjobs2017.pdf