Worker supply the key to maximising the Territory economy

The latest KPMG snapshot of the Northern Territory contains a major warning that could spell trouble for the economy. Read what it is.

Housing supply across Darwin is expected to drag down the local economy - with the Territory’s already “sluggish” construction sector applying a potential handbrake to growth and investment.

A new KPMG report released Thursday estimated an additional 6000 new Territory jobs by 2030, but said the city “must grapple with growing pains as a sluggish construction sector struggles to get housing out of the ground”.

And figures released by the National Housing Supply and Affordability Council show the Territory is tipped to only build 4000 of 11,000 homes forecast under the commonwealth government’s plan.

At a 36 per cent success rate, this is by far the worst outcome nationally out of the eight jurisdictions, with Tasmania at 50 per cent and New South Wales at 65 per cent.

Housing construction could prove a drain on the NT economy.

A 2024 Darwin snapshot in KPMG’s Enterprising Cities report showed working age people showed 570 people aged 30-39 and 160 in the 40-49 age group living in Darwin to work.

Between 2020 and 2024, there was a notable rise in job ads for managers, which increased from 124 in 2020 to 269 in 2024.

It found job ads for professionals rose to 642 in 2024, indicating an expansion in white-collar workers and increasing opportunities for skilled professional roles.

The number of job ads for trades and machinery operators experienced substantial growth, rising from 257 in 2020 to 495 in 2024, highlighting the need for skilled workers in primary industry sectors.

The report identified that despite the economy’s demand for skilled workers across a range of sectors, dwelling approvals continued to trend downwards, with 288 approvals in 2024 compared to 332 in 2023 - and well below the five-year average of 355 dwellings.

KPMG’s Derek Campbell.

On the upside, the Territory Government’s HomeGrown Territory loans meant finance approvals for new housing construction in the December quarter were up 76 per cent, with expectations of a similarly strong start to 2025.

The report card identified the Australian and US Defence departments would invest $6 billion in the Territory in coming years, as well as expected private investment in gas and energy projects.

KPMG NT managing partner Derek Campbell said worker supply and housing could put a handbrake on economic growth.

This was despite finance approvals for new housing construction in the December quarter up 76 per cent, backed by the NT Government’s HomeGrown Territory grants.

“The demand for skilled workers remains high in Darwin,” Mr Campbell said.

“The problem for the region is that we don’t have the housing supply to match it.

DCOH managing director. Picture: Pema Tamang Pakhrin

“Thankfully, government extended the grant by another 12-months because we found people weren’t able to get finance approval and the builder lined up in time to meet the October deadline.

“How do we give private enterprise more certainty so there’s more projects and more investment that just aren’t happening at the level we were previously. So we really need that increase in private investment so the project continue and can fill the gaps on the peaks and troughs of Defence and whatever else.”

Developer and DCOH managing director Shane Dignan said the awarding of permanent residency for foreign workers should be streamlined.

“We need to be the easiest place to get permanent residencies,” he said.

“People are leaving here to go to Perth because they can get the application through quicker and then they can get Medicare and other services.

“We should also be changing the definitions around regional and remote so Perth and the Gold Coast aren’t classified as regional.”