But since the outbreak of COVID-19 in early 2020, Australia has closed its borders to working immigrants, forcing employers to raise salaries to recruit more scarce employees.
“By the end of next year, or even longer, there will be a lot of real estate construction activities.
At the same time, there is also the impact of opening international borders on labor supply.
A female worker on a construction site in Sydney (photo source: Daily Mail) according to a survey of employers in October, the Australian industry group and the housing industry association predict that wages in the construction industry will increase by 6% a year in 2021.
Since last year, the trend of housing construction has become more extensive, and the demand for new housing and decoration has surged.” in April this year, the application for a $15000 housing builder subsidy has been terminated, but the plan will continue until 2023.
However, during Australia’s rebound from the early epidemic restrictions, this situation is very difficult This has not happened yet.
It can be seen that employers have proposed salary increases to retain employees, which will lead to faster wage growth.
The federal government subsidizes new homes and renovations through its homebuilder program.
Philip Lowe, President of the Federal Reserve Bank of Australia, said that the unemployment rate has decreased from 4.6% in September.
Thomas Devitt, an economist at the housing industry association, said roofers, site preparation excavators and tile workers were particularly hard to find.
They will still heat up and will still be strong, but not so intense.” a house under construction in kellyville, northwest Sydney, and a house under construction in Oran Park, southwest Sydney (photo source: Daily Mail) Since mid-2013, the wage increase of Australian Labor Force has been lower than the average level of 3% for a long time.
This figure was lower than the inflation rate of 3.8% in the previous fiscal year, which was higher than the target of 2% to 3% set by the reserve bank.
The Australian industry group and the housing industry association predict that wages in the construction industry will increase at an annual rate of 6% in 2021.
However, there are also signs of improvement.
If this becomes a reality, the average full-time salary of construction site technicians will be $95561.
The average wage of full-time men has soared by 3.9% in just six months, from a $86736 in November 2020 to a $90152 in May this year.
Good article! You must like it..
More and more people are eager and able to work from home in larger houses, which has also led to the construction boom.
Westpac bank, Australia’s second-largest bank, predicted that the unemployment rate would fall to 3.8% by the end of 2022, reaching the level of 1974.
For eight years, wage growth has been below average, and in many cases, real wages have fallen due to inflation.
In an interview with the daily mail, he said: “compared with the overall economy, the wage pressure and shortage of technical talents faced by the construction industry seem to be more serious.
Since Since the Australian Bureau of statistics began collecting monthly labor force data in early 1978, the national unemployment rate has never been lower than 4%.
Statistics Australia’s data cover all people working on construction sites, including semi skilled workers, not just high paid and hot construction managers.
According to the data of the Australian Department of justice, in the second quarter of 2021 In the corporate agreements negotiated in the second quarter, the average wage rose by 2.7%.
The pressure on land, labor and materials will continue, but we don’t think they will be as serious as this year,” Devitt said “The international border will open, the supply chain will begin to grasp the situation, and the construction activities will certainly not reach the peak we have seen this year.
We have little historical experience to guide.
Reported that the border closure will help end the salary shortage of Australian workers.
The Daily Mail reported on November 4 that the closure of the Australian border has led to a shortage of workers, and employers have to raise wages to retain scarce employees.
Economists believe that traditionally, the unemployment rate of less than 5% will lead to wage increases.
He said on Tuesday: “When the unemployment rate is close to 4% for a long time, there is also uncertainty about how wage growth will respond.
In June, the wage increase was pitifully low, only 1.7%.
At the same time, the wages of technicians will rise further, which may bring their average wages close to six figures.
Such an increase would bring the average wage of Australian full-time employees to a $92858.
Economists predict that the wages of full-time employees will also increase.
Bill Evans, chief economist, also predicted that the wage growth rate would reach 2.8% next year.
Construction workers have been the biggest beneficiaries.
