Connecting...

Blog Img

Delivering the Plan: Obstacles to Engineering Jobs Growth in 2025

Back to Blogs

Every day, my colleagues and I speak to various clients across the mining, resources, infrastructure and construction sectors. Key to understanding how to best support our clients in providing engineering recruitment services is understanding the vision for the business and their short-medium and long-term goals.

Australia's engineering and design sectors are confronting a set of challenges that demand urgent attention from industry, government and education providers. As I have engaged with several consultants and contractors, with growth and opportunity at the forefront of their approach, I thought it valuable to analyse the challenges the industry is facing. As pressure mounts, I see five challenges that stand out as critical threats to long-term growth and capability.

1. Engineering Skills Shortage

Australia is facing a concerning rate of talent shortages across all engineering job disciplines. The demand for engineering professionals continues to outpace supply across all major sectors, driven by project pipelines in renewables, infrastructure upgrades, mine expansions and defence. Add to that, too few graduates are entering the profession, and many qualified engineers are leaving for adjacent sectors like consulting, IT or finance. Alarmingly, a considerable proportion of registered engineers are not actively working in the field. This talent shortage is stalling delivery capacity and inflating costs across projects.

2. Discipline Lacks Diversity

Put simply, the Australian engineering workforce lacks diversity, which in turn excludes skilled individuals and hinders innovation. It would come as no surprise, women make up a mere 14% of the engineering profession, while First Nations Australians account for only 0.3%. Increasing diversity is essential to foster inclusiveness that genuinely reflects the diverse demographics and cultures of Australia.

3. The Sustainability Factor

No longer a secondary consideration, sustainability is becoming a fundamental design factor from the outset. Engineers are now expected to deliver projects that minimise environmental impact, enhance energy efficiency and withstand climate-related stressors. This transition requires new thinking, tools and capabilities. From decarbonising transport networks to optimising water infrastructure and embedding circular economy principles, the technical scope of "sustainable engineering" continues to expand rapidly.

4. Reliance on International Candidates

Australia remains heavily dependent on internationally sourced engineers, with 70% of new candidates coming from overseas. While skilled migration plays a vital role in bridging workforce gaps, this reliance creates vulnerability in times of geopolitical tension or global workforce mobility constraints. More must be done to build a sustainable domestic pipeline, including increased investment in STEM education, local graduate programs and retention initiatives.

5. Technology’s Pole Position

Emerging technologies like AI, automation and smart infrastructure offer vast potential - if harnessed correctly. Many organisations are struggling to keep pace with the rate of technological change. Adoption remains disproportionate, and upskilling the current workforce is a substantial challenge. Without adequate digital transformation strategies, Australian engineering risks falling behind global competitors.

In short, the future of Australia's engineering jobs depends on proactive workforce development, diversity initiatives, technology integration and a commitment to sustainability to drive job growth. These aren't isolated issues - they're interconnected. Solving them will require a coordinated approach, long-term investment and a willingness to rethink traditional models of engineering education and recruitment.

With deep expertise in engineering and technology jobs and careers, we stay closely connected to the people and projects shaping the sector across Australia. Wherever you are in your career, we can help you navigate the opportunities. Get in touch with our team to find out how we can support your journey or search current engineering and technology jobs.

Latest News &
Industry Insights.

​Exclusive to our client edition of the Titan Insight newsletter.