Townsville’s worker shortage stands as a key obstacle blocking future prosperity
Townsville’s businesses are struggling to find enough workers to keep ticking over and deliver on a massive pipeline of future projects. Read our deep dive into the challenge.
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Townsville’s businesses are experiencing workforce shortages and recruitment challenges, in what is shaping as a key obstacle in delivering a $36 billion pipeline of major projects.
Through recent discussions with local businesses including National Tiles, Carpet Call, MagMedic, Emperor Roofing & Plumbing, and the Mount Louisa Medical Centre, the Townsville Bulletin has heard employers relay their struggles in recruiting and retaining staff.
Compiled by the Council of Small Business Organisations Australia and CommBank, the recently released 2024 Small Business Perspectives Report said Australian small businesses continued to face significant workforce challenges, including a critical shortage of both skilled and unskilled workers.
“A recent analysis showed more than one-third of occupations nationwide are experiencing shortages, with 50 per cent of technician and trade worker groups particularly affected,” the report said.
“A comprehensive and strategic approach is needed to support and foster productivity and innovation in Australia’s small businesses.
“This approach should include targeted migration policies, enhanced support systems, and integration of small businesses’ needs into national workforce planning.”
Background behind NQ’s recruitment challenge
TP Human Capital director Clayton Cook said Townsville’s significant challenges in finding workers across a wide range of industries could be traced back to the region’s significant localised recession between 2013 and 2018.
It resulted in the loss of over 15,000 skilled workers, with unemployment rates soaring to the highest in the country.
In 2019, the tide turned and economic activity rebounded, which further accelerated post-Covid, buoyed by a confidence-inspiring pipeline of work.
This economic resurgence, coupled with Townsville’s current low unemployment rate of 4.1 per cent, has created a unique set of challenges.
“While we’ve seen a drop (in job advertisements) to around 2,000 in early 2024, the past two months have seen us return to the 2,400 level,” Mr Cook said.
“With only a few thousand workers currently unemployed, we’re facing a significant skills shortage across various sectors.”
He said many entry-level workers in retail, hospitality, and labour have had opportunities to advance their careers, moving up one or two levels in their respective industries or transitioning to new sectors, leaving gaps that are proving difficult to fill.
“This isn’t an isolated issue; we’re seeing similar patterns throughout Queensland and indeed, across Australia. Hardly a day goes by without us hearing from clients about their struggles to attract and retain staff,” he said.
“We’re not just talking about one or two sectors feeling the pinch. From hospitality and healthcare to construction and professional services, the difficulty in securing quality staff is widespread.”
The recruitment challenges were most acutely being felt in hospitality and tourism, trades and construction, retail, agriculture, healthcare and aged care.
Health industry grapples with employment challenge
Townsville Hospital and Health Service chief executive Kieran Keyes said they were
continuing to invest in infrastructure and staff to meet increasing healthcare challenges for the region due to a growing population and increased burden of chronic diseases and illnesses.
“There is a recognised shortage of healthcare workers across the country, and this is an issue Townsville HHS faces as it looks to fill vacant positions across the region,” Mr Keyes said.
“Despite these shortages, Townsville HHS has increased full-time equivalent positions for doctors by 10 per cent, nurses by 4 per cent, and allied health professionals by 8 per cent since last year.
“With more than half a billion dollars of expansion works planned across the health service over the next few years, Townsville HHS is using several initiatives including advertising, training pathways, graduate programs, and established relationships with industry stakeholders, including universities, to help fill vacancies across the health service.”
Housing solution needed for workers
In the lead up to the Queensland government election, Townsville Enterprise chief executive Claudia Brumme-Smith put forward a comprehensive $65 million housing package to unlock 5650 new homes.
She said the region’s pipeline of projects was at risk without immediate housing solutions for the 27,000 additional skilled workers required over the next five years.
“As our population grows, it’s crucial we invest in residential infrastructure to relieve the acute housing crisis. We simply cannot allow something as fundamental as housing to delay tens of billions of dollars in economic development,”
“This is not just about roofs over heads — it’s about securing the future prosperity of our region.”
In an effort to entice thousand more skilled workers to Townsville, Townsville Enterprise and key industry partners united in July to deliver a national liveability campaign called The Good Life.
Although the campaign is still live, Ms Brumme-Smith said they were already seeing outstanding results, reaching over millions of people, and surpassing their engagement targets. “We look forward to sharing the final results (of the campaign) in the coming weeks,” she said.
“We’ve also put forward key priorities, including a new entertainment facility, waterfront development, and critical insurance policy recommendations to further enhance Townsville’s appeal.
“Additionally, we’ve made migration submissions to the Department of Home Affairs and Federal Government, urging against potential changes to the Working Holiday Maker Visa (which) could see Townsville competing with regions like the Gold Coast and Sunshine Coast, areas with a population base of over 1.1 million on their doorstep.
“Such a shift would unfairly disadvantage Townsville, threatening industries that depend on this vital workforce.”
Positive feedback for The Good Life campaign
Townsville Catholic Education director of organisational services Jennifer Blackshaw said the TEL-led liveability campaign had been an “excellent fit” for their organisation.
“One of its key strengths was the use of diverse communication modes, which effectively targeted different audiences and maximised the reach,” Ms Blackshaw said.
“With the education industry currently facing a national teacher shortage, Townsville Catholic Education saw this as an important chance to highlight the benefits of living and working in Townsville.
“Our aim was to attract educators who may not have previously considered North Queensland as a place to live, work and grow their career.”
While it was hard to source specific results from this campaign, she said it “clearly amplified” their existing recruitment strategies.
“With the financial support of all campaign partners, we were able to access markets that would have otherwise remained untapped,” she said.
“It’s also been incredibly rewarding to see industry partners come together, delivering the consistent campaign message showcasing The Good Life.”
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Originally published as Townsville’s worker shortage stands as a key obstacle blocking future prosperity
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