Big projects worth billions put squeeze on workforce

Narrandera Shire, along with Hay, have recorded the highest unemployment rates in the Riverina, according to the latest unemployment data released by the National Skills Commission, whilst neighbouring Lockhart has recorded one of the lowest.

The figures show unemployment across the Riverina remains low, averaging 2.4 per cent across the region.

Narrandera and Hay shires both recorded 3.7 per cent, an historically low figure.

The lowest rates were recorded in the Bland Shire (1.4 per cent) and Lockhart Shire (1.5 per cent).

Overall, unemployment rose slightly in the March quarter, but the rate is still one of the lowest recorded in the past decade.

Regional Development Australia (RDA) Riverina chief executive officer and Director of Regional Development Rachel Whiting says it’s no cause to celebrate because the Riverina has more jobs than people to fill them.

“In 2020, we surveyed Riverina employers and found that almost half could not find the staff they need and left roles unfilled, while almost 80 per cent had trouble recruiting,” she said.

“This comes down to several factors including our ageing work force and industry increasingly needing more workers.

”For example, we have up to 8000 construction jobs across the region and neighbouring regions and not enough skilled workers to meet that need.

“For the past five years, RDA Riverina has focused on developing strategies that will help meet the medium and long-term employment needs of the Riverina.”

Employment in NSW grew by 61,900 full time jobs in May, according to the latest data from the Australian Bureau of Statistics.

The data revealed that employment across the state was 133,000 above the pre-Covid level and more than 90,000 above the pre-Delta peak.

NSW Treasurer Matt Kean said the results were positive for the state and that employment growth was booming.

“Our record participation in the NSW workforce is being driven by the continuing rise in female participation which is now at record levels,” Mr Kean said.

The female participation rate hit a record 61.9 per cent, above the pre-COVID level of 60.2 per cent, while the male participation rate increased by 1.2 per cent to 70.7 per cent, also above pre-Covid levels.

The number of hours worked increased by 2.2 per cent in May, despite continued Omicron-related illness and a rise in influenza cases.

Hours worked is now 2.7 per cent above December 2021 levels.

“The unemployment rate in NSW remains low and the number of hours people are working has seen a strong increase as we continue to recover from the impacts of the pandemic,” Mr Kean said.

“Month-on-month we’re reaping the benefits of the NSW Government’s strong economic management through-out the challenges of the pandemic and our recovery.”

Working with businesses to establish their needs and develop programs to assist them, RDA Riverina has developed Country Change to attract people from throughout Australia,

Grow Our Own to build the skills of young people from within the region, JobsRiverina to help job seekers easily find work opportunities and Skilled Migration to help attract migrants to fill employers’ needs.

Last year, RDA Riverina became a ”back-bone coordinator” for the NSW Government’s $3 million Growing Regions of Welcome (GROW) program, designed to help new migrants and refugees in Western Sydney find new opportunities to live and work in the regions.

In a bid to establish the Riverina as a prime choice for overseas workers, Leeton was chosen as a pilot town for the GROW program, which is designed to address some skills shortages and add to the cultural fabric of the communities.

Business NSW claims alarm bells are ringing across regional NSW as an absence of large infrastructure project coordination is exacerbating the housing and skills crises in towns and cities across the state.

The state’s peak business organisation, Business NSW launched its new report Down to the Wire: Managing the upcoming infrastructure workforce crunch in Riverina Murray, which highlights the challenges of delivering more than $20 billion worth of projects in the region and finds that the risks are applicable across the state.

“There is a real risk that NSW will miss out on maximising the benefits from an unprecedented infrastructure pipeline across the state,” said Business NSW Regional Manager, Riverina Murray, Anthony McFarlane.

“The worst case scenario is that the local regional economies in NSW are stretched to breaking point in coming years, with skilled workers poached from local businesses as more projects come online and housing shortages become more acute.

“As a case study for regional NSW, there is a real risk that the six biggest infrastructure projects in the Riverina Murray region, collectively estimated to be worth well over $14 billion, are likely to face further cost increases over the coming years as inflationary pressures and workforce shortages compound.

“While it is positive that this region is becoming a centre of excellence for Renewable Energy, we are concerned about the lack of coordination between these projects, which if left unmanaged will cause significant challenges for local communities and lead to further cost escalation and delays.”

Locally, a number of large scale solar farms, including at Avonlie, Darlington Point and Sandigo, are valued in the hundreds of mil-lions, whilst Transgrid’s Energy Connect project is another major project set to descend on the region, worth $2 billion.

The Riverina Murray is already struggling to meet businesses’ need for skilled workers, and to provide sufficient housing, the report found.

Workforce shortages are being felt locally across all sectors, be it traditional agriculture, timber industry business, hospitality and more.

Workforce pressures, whilst being acutely felt in this region, can be found in almost any region in NSW.

The report found that Riverina Murray is the canary in the coal mine for regional NSW.

The question is, how does industry and government manage the influx of demand for housing and skilled workers and the negative impact that can have on local communities.

“There is a real opportunity for the new Federal Government to address these challenges and, in its review of Infrastructure Australia, create a regional Infrastructure Coordinator General function genuinely empowered to manage the demands from different government departments and non-government infrastructure providers to maximise each project’s legacy for local communities,” Mr McFarlane said.

“This role could also support engagement and co-design between industry and education in the region and address any inadequacies in relevant education and training offerings,” Mr McFarlane said.

This article appeared in the Narrandera Argus, 14 July 2022.