The annual Federal Budget is always a key indicator of Australia’s employment outlook for the next financial year—with the distribution of funds highlighting the industries that will experience growth and increased job opportunities. And for the 2024-25 budget, which was handed down on 14 May, a large portion of the $700 billion was earmarked for boosting employment opportunities in Australia’s critical production and support sectors (Commonwealth of Australia, 2024).
An Indirect Impact on Employment Opportunities
According to Catherine King, Minister for Infrastructure, Transport, Regional Development and Local Government, the 2024-25 Federal Budget’s overall aim is to ‘drive productivity, boost economic growth, create job opportunities, and help to tackle cost of living pressures’ (The Hon Catherine King MP, 2024). To achieve these goals, the budget makes significant changes, including tax cuts for all 13.6 million taxpayers, a nationwide power bill rebate, and support for renters and home buyers (Commonwealth of Australia, 2024).
While the budget does not list improving unemployment rates as a priority—although the unemployment rate ticked upwards of 4.2% in July (Deloitte, 2024)—it does indirectly work to change the situation through addressing skills shortages and making certain career pathways more accessible. An analysis from KPMG explains that the budget ‘targets cost of living relief for students and apprentices while investing in skills needed for the childcare, housing, construction and energy sectors’. (KPMG, 2024)
Transformative Support for the Healthcare Sector
Public hospitals will receive a boost of $4 billion for 2025-26 and another $13 billion over the following five years, helping to fund more jobs for an already stretched healthcare industry. From July 2025, approximately 70,000 Australians undertaking work placement roles, like nurses, teachers, and social workers, will begin receiving almost $320 per week during their placements. Therefore, helping to ease staff shortages across the healthcare, disability care, and education sectors. (Leggatt, 2024)
A Solution for the Housing Crisis Also Addresses Staff Shortages
The budget aims to address Australia’s housing crisis with a much-needed injection of vital workers to the industry. $88.8 million will be invested over three years to support 20,000 new fee-free TAFE and VET training places, increasing access and uptake in the courses and apprenticeship programs necessary to reinforce the construction sector. (LexisNexis, 2024)
Master Builders Australia Chief Executive Denita Wawn reacted positively, expressing hope that the changes would reduce the barriers to growing the construction industry workforce. “Workforce shortages remain the biggest source of cost pressure and disruption for the building and construction industry,” she said. “Despite a sizeable workforce of 1.35 million Australians, the industry has an annual exit rate of 8 per cent, and we are only replacing half of those people per year.” (Borys, 2024)
Move Towards Green Energy Could Stimulate Recruitment
The $22.7 billion A Future Made in Australia package will see significant growth for the green energy sector (Commonwealth of Australia, 2024). Designed to maximise the economic and industrial benefits of Australia’s transition to net zero, the package could generate a raft of new jobs in the process (EY, 2024).
With support for fossil fuels cooling rapidly, companies prioritising green technologies could also be indirectly creating opportunities that attract environmentally-driven Gen Z and millennial workers—addressing the increasing decline in this generation’s interest in the resource industry.
Navigating Changes to the Employment Landscape
The public response from the green energy sector, construction industry, and healthcare sector has been understandably positive. However, there has been public criticism around the budget’s lack of support for those actually seeking employment, with no meaningful rise to the government’s Jobseeker payments (Leggatt, 2024).
Despite this, the key budgetary changes will help to address staff and skills shortages that have been prevalent for years, bringing thousands of new jobs online. As such, employers are likely to see a surge in jobseekers and a subsequent rise in onboarding and compliance requirements.
To ensure they can make the most of the recruitment opportunities that arise from these changes, businesses should begin preparing now.
This can include:
- Prepare your payroll systems. Make sure everything is up to date to handle the influx in new data.
- Ensure you have the right compliance systems in place, so all new workforce accessing your sites—whether office-based or on-site—are approved to mobilise and have all the necessary credentials, inductions, and expertise.
- Prepare your people for increased employment screening activities, which could stretch out delivery times.
- Importantly, accurately plan staff hours to accommodate increased workload, particularly around the upcoming holiday period.
When deployed, the 2024-25 Federal Budget is likely to usher in a time of growth for several industries, particularly construction and healthcare. Generating much-needed assistance for businesses that have experienced significant strain throughout the staff and skills shortages.
The team at CV Check can provide expert advice and assistance around employment and recruitment, helping to ensure you manage these changes effectively and efficiently.
References:
Borys, S. (2024, May 8). Millions pledged to cover fee-free TAFE to get more workers into housing construction. ABC News. https://www.abc.net.au/news/2024-05-08/housing-construction-workers-fee-free-tafe-federal-budget/103819546
Commonwealth of Australia. (2024, May). Cost of living help & a future made in Australia. https://budget.gov.au/content/overview/download/budget-overview-final.pdf
Deloitte. (2024, August 21). Deloitte Access Economics Employment Forecasts. https://www.deloitte.com/au/en/about/press-room/deloitte-access-economics-employment-forecasts.html
EY. (2024, May 16). Australia delivers 2024-25 Federal Budget. https://globaltaxnews.ey.com/news/2024-0985-australia-delivers-2024-25-federal-budget
KPMG. (2024, May). Federal Budget 2024. https://assets.kpmg.com/content/dam/kpmg/au/pdf/2024/federal-budget-2024-analysis.pdf
Leggatt, J. (2024, May 15). Federal Budget Analysis 2024: Winners And Losers. Forbes. https://www.forbes.com/advisor/au/personal-finance/federal-budget-2024-winners-and-losers/
LexisNexis. (2024, May). 2024-2025 Federal Budget – Employment. https://www.lexisnexis.com.au/en/products-and-services/capital-monitor/federal-budget/2024-2025/federal-budget-employment
Minister for Infrastructure, Transport, Regional Development and Local Government (The Hon Catherine King MP). (2024, May 14). Investment to deliver a future made in Australia [Press release]. https://minister.infrastructure.gov.au/c-king/media-release/investment-deliver-future-made-australia
