Construction - Economics and Employment

Explore the construction sector data which highlights its contribution to the local economy on the Sunshine Coast.

The construction industry has long been a cornerstone of the Sunshine Coast's local economy, contributing significantly to regional productivity and building a happy and functional community. Although it may not have experienced the recent rapid growth seen in emerging sectors like professional services and the arts, construction remains a vital economic player, contributing significantly to the local economy. This article examines the industry's current state, focusing on productivity, workforce qualifications, employment trends, gender diversity, and wage levels. The analysis aims to highlight the strengths, challenges, and future outlook for this critical sector, especially as the Sunshine Coast prepares for population growth and infrastructure development tied to the upcoming Brisbane 2032 Olympic and Paralympic Games.

The construction sector was highlighted in the recent refresh (2023) of the Sunshine Coast Regional Economic Development Strategy (REDS) 2013 - 2033. The industry will play a vital role in helping the region achieve four key economic outcomes which includes growing the local Gross Regional Product to $33 billion. Highlighted in the REDS is the talent and skills pathway that addresses talent attraction, retention and development which is desperately needed by the construction industry. Sunshine Coast Council will work with other government agencies and industry to support this

Industry productivity

Source: National Institute of Economic and Industry Research (NIEIR) 2024. Compiled and presented by economy.id

Construction currently makes up approximately 12 per cent of total value add of all industries on the Sunshine Coast. Productivity growth in construction during the last available reporting period indicated that the sector’s value add increased from 2022 to 2023 by 2.6 per cent. In 2023 the value add for construction reached approximately $2.2 billion.

Value add is the net output of a sector once all inputs have been factored in (also considered level of productivity).

Industry workers qualifications

Source: Australian Bureau of Statistics, Census of Population and Housing 2021. Compiled and presented by economy.id)

The local construction industry workforce has a high proportion of workers with a Certificate III or IV level qualification. With much of the workforce made up of trades people, 49.5 per cent of the workforce have gone through formal vocational education to become fully qualified trades people. This contrasts with only 24.6 per cent of the workforce across all other industries obtaining the same level of qualification.

Total employment time series

Source: National Institute of Economic and Industry Research (NIEIR) 2024. Compiled and presented by economy.id

The construction industry has been a major source of employment opportunity for residents in the region. Jobs related to the industry make up 12.3 per cent of all employment on the Sunshine Coast with that industry total reaching 21,272 jobs in 2023. The Sunshine Coast has experienced the same labour shortage challenge as the rest of Australia which would have impacted employment numbers. Jobs remained relatively stagnant from 2018 to 2022 before increasing by 6 per cent from 2022 to 2023. This increase could be a result of international labour returning to Australia to help fill job demand. Employment opportunities are expected to grow significantly as the region’s population booms and infrastructure is built in the lead up to the 2032 Olympic Games.

Employee age and gender distribution

(Source: ABS Table Builder 2024, 2021 Census - employment, income, and education)

The construction industry continues to be a male dominated industry with 83 per cent of local jobs occupied by men. The average age of a Sunshine Coast construction worker is 40 years old with 47 per cent of the workforce in the 25 to 44 year old age bracket. Females make up 17 per cent of the construction workforce with 51 per cent of that demographic aged between 35 to 64. Industry and government are placing more emphasis and support into building the female workforce in construction. The Queensland Government has a goal to grow frontline female construction workers to 15 per cent.

Industry business distribution

(Source: ABR 2024)

The above heatmap illustrates the distribution of construction businesses on the Sunshine Coast. Businesses are densely populated along coastal areas and out to inner hinterland towns such as Nambour. The region is currently home to approximately 8,000 construction businesses that make up the 36,000 business community.

Disclaimer: ABS employment Data has this information grouped by larger selected suburbs. Smaller suburbs feed into the data set of these selected suburbs.

Employee income distribution

(Source: Australian Bureau of Statistics, Census of Population and Housing 2021. Compiled and presented by economy.id)

Wages in the local construction industry is higher than the Sunshine Coast average ($750 per week) with 80 per cent of the local construction industry making over $800. The largest income bracket for this sector is $1000-$1,249 which is represented by 17.5 per cent of the local workforce. Data shows that Sunshine Coat construction workers make less than the rest of the state which is expected with large development and infrastructure projects happening in the Brisbane area.

Job vacancies – Australia-wide

(Source: ABS 2024, Time Series – 6354 – Job Vacancies, Industry, Australia)

The Job vacancy level in the construction sector has followed a similar trend to the cumulative vacancy total across all industries. Vacancies in the sector have dropped off drastically since late 2023 indicating that labour demands are being met.

Conclusion

The Sunshine Coast's construction industry continues to be a foundational pillar of the local economy. With a solid share of the region’s total economic output, high levels of vocational training among workers, and a steady increase in employment opportunities, the sector remains both stable and significant. Despite the dominance of a male workforce and slightly lower wage levels compared to the rest of Queensland, there is a clear trend towards increased diversity and a drive to meet labour demands. As the region looks forward to major projects and a growing population, the construction industry is poised to play a crucial role in shaping the future of the Sunshine Coast.

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Disclaimer

Information contained in this correspondence is based on available information at the time of writing. All figures and diagrams are indicative only and should be referred to as such. While the Sunshine Coast Regional Council has exercised reasonable care in preparing this information it does not warrant or represent that it is accurate or complete. Council, its officers, and contractors accept no responsibility for any loss occasioned to any person acting or refraining from acting in reliance upon any material contained in this document. Any forecasts or projections used in the analysis can be affected by a number of unforeseen variables, and as such no warranty is given that a particular set of results will in fact be achieved. Sunshine Coast Regional Council has referenced a range of data sources to compile this information including the Australian Bureau of Statistics, Queensland Government Statistician’s Office, Tourism Research Australia, Economy Id and the National Institute of Economic and Industry Research. While every care has been taken to ensure the content is accurate, there may be errors or omissions in it and no legal responsibility is accepted for the information.