Austroads has released a report highlighting the urgency of strengthening the workforce to meet demands of historic highs of road infrastructure investment across Australia and New Zealand.
The Australia and New Zealand Roads Capability Analysis March 2025 Update report identifies short- to medium-term workforce capability pressures in Victoria, South Australia, the Australian Capital Territory, and New Zealand, as project pipelines expand, and activity intensifies.
This latest release is the third in a series of four half-yearly updates to the quantitative analysis in the Australia and New Zealand Roads Capability Analysis 2022-2032 report, delivered in September 2023 by Oxford Economics Australia. It provides updated projections based on fresh labour market data and recent government budgets, with the base year revised to the 2024 financial year (FY24) and forecasts now extending to FY34.
“This is a time of significant opportunity for the sector,” said Geoff Allan, Chief Executive of Austroads. “We’re seeing increased investment, major project launches, and renewed momentum across both countries. But to deliver on this promise, we must ensure we have the skilled workforce in place to support it.”
Australia’s road construction sector has strengthened, with activity forecast to peak at around $39.7 billion in FY26, supported by a significant pipeline of major projects. While a modest skills surplus is anticipated in FY25, the report warns that rising demand, delivery challenges, and inter-sector competition could put strain on agency staffing.
From FY30 onwards, construction activity is expected to stabilise at elevated levels – averaging $34.3 billion annually – with road maintenance also projected to grow through initiatives like the Roads to Recovery program.
In New Zealand, the 2024 Government Policy Statement on Land Transport confirmed a renewed focus on strategic projects and a NZD$640 million increase in road maintenance funding over the next decade. Road activity is now expected to peak at NZD$5.4 billion in FY27, driven in part by the reintroduction of the Roads of National Significance program.
While the report projects a capability gap of more than 300 workers by FY27 in New Zealand’s public road workforce, this will turn to a surplus from FY28 onwards as training, migration, and recruitment efforts take effect.
