We will explore the countries with the highest demand for engineering talent, the skills and qualifications in demand, and the challenges and opportunities that come with working as an engineer in a foreign country.
Engineering labor shortages across the world
A lot of things around us are created by engineers. From the energy powering your home to the car you drive and the device you're currently using to read this article, engineers have played a critical role in shaping the world around us.
But here's what's happening in Australia: the country is facing a severe shortage of engineers. This is particularly concerning given that engineers are widely recognized as the driving force behind advanced economies. Australia's engineering shortage is characterized by two significant differences.
- Firstly, the shortage is extensive in scale, affecting all engineering disciplines except for biomedical fields. This shortage can be classified as a "skills shortage", as per the definition of the National Skills Commission. This implies that entire industries could be functioning at sub-optimal levels as multiple sectors of the economy depend on engineering expertise.
- Secondly, the demand for engineers is increasing due to the widespread integration of technology into our daily lives, a burgeoning infrastructure sector, and greater awareness of climate change leading to a shift towards cleaner, more sustainable energy.
As a result, Australia will require more engineers than ever in the coming years. Engineers Australia has estimated a shortfall of 50,000 to 100,000 engineers in the future, even though the current demand for engineers cannot be met due to insufficient numbers.
Engineer shortages are a global issue affecting numerous countries across the world. One of the other countries that have been grappling with an engineering shortage is the United States. According to the Bureau of Labor Statistics, engineering jobs are projected to grow at a rate of 4% between 2019 and 2029, but this growth rate is slower than the average for all occupations. This has led to a mismatch between the skills and qualifications of available candidates and the demands of employers.
Similarly, the United Kingdom has also experienced an engineer shortage in recent years. The Institution of Engineering and Technology has predicted a shortfall of over 200,000 engineers in the UK by 2024.
Other countries that have been affected by engineer shortages include Canada, Australia, and Germany.
In Canada, the shortage has been particularly acute in the tech sector, with companies struggling to find engineers with specialized skills such as AI and machine learning.
In Germany, the shortage has been attributed to an aging workforce, with many engineers expected to retire in the coming years, leaving a gap in expertise and experience.
The root causes of the shortages can vary, but many countries are experiencing a combination of aging workforces, a lack of investment in STEM education, and insufficient recruitment of young engineers. In some cases, companies struggle to find engineers with the right skill sets or experience, which can further exacerbate the problem. This has significant implications for the economy as a whole, as engineering is a critical driver of innovation and development.
What are the prospects for engineers abroad amid labor shortages?
The prospects for engineers seeking to work abroad following labor shortages are generally positive, with many countries actively recruiting engineers to address the skills gap. Some countries have implemented programs to attract foreign engineers to work on projects and fill skill shortages. These programs offer various incentives such as:
- fast-tracked visas
- relocation support
- and tax breaks
For example, Canada has launched several initiatives to attract foreign engineers to work in the country. The Global Talent Stream is one such initiative that expedites the process for highly skilled workers to obtain work permits in Canada. Additionally, the Atlantic Immigration Pilot Program is another initiative aimed at addressing labor shortages in specific regions by making it easier for companies to hire foreign workers.
Similarly, Australia has implemented several measures to attract skilled engineers to the country. This includes the Skilled Occupation List, which identifies professions in high demand and fast-tracks visas for those occupations. The Temporary Skill Shortage visa is another program that allows Australian companies to sponsor foreign workers for up to four years to fill skill shortages.
Germany has also implemented several programs to attract foreign engineers, including the EU Blue Card scheme, which grants residence permits to highly skilled workers from non-EU countries. This initiative aims to address the shortage of engineers and IT specialists in Germany.
Where should you move as an engineer?
Deciding where to move as an engineer will depend on various factors, such as the demand for engineers, salary expectations, and personal preferences. Here are some countries that are currently experiencing a shortage of engineers and offer excellent opportunities for engineers seeking to work abroad:
Canada
With an aging workforce and a growing demand for engineers, Canada has implemented various programs to attract skilled workers, including engineers. The country offers high salaries, excellent work-life balance, and an inclusive culture. According to Glassdoor Canada, the average salary for an engineer in Canada is US $83,667 per year as of 2023.
Australia
As mentioned earlier, Australia is currently experiencing a shortage of engineers across all disciplines except biomedical fields. The country offers high salaries, a pleasant climate, and a relaxed lifestyle. According to Glassdoor Australia, the average salary for an engineer in Australia is US $100,000 per year as of 2023.
Germany
Germany has a robust economy and is home to several world-renowned engineering firms. The country offers excellent opportunities for engineers seeking to work in the automotive, mechanical, and electrical sectors. Salaries are competitive, and engineers in Germany benefit from excellent healthcare and education systems. According to Glassdoor, the average engineer in Germany makes about US $70,000 per year in 2023.
United Arab Emirates
The UAE is a hub for engineering and construction projects, with numerous companies seeking engineers to work on ambitious projects. The country offers high salaries, tax-free income, and a vibrant cultural scene. According to GulfTalent, engineers in the United Arab Emirates can expect to make around US $7,000 per month — however, salaries vary greatly depending on the field, qualifications, experience, and more.
Singapore
With a thriving economy and a focus on innovation and technology, Singapore is an excellent destination for engineers seeking to work abroad. The country offers high salaries, a low crime rate, and a cosmopolitan lifestyle. According to Glassdoor, the average salary for an engineer in Singapore is US $44,100 per year.
In conclusion, deciding where to move as an engineer will depend on various factors such as demand, salary, and lifestyle preferences. The countries mentioned above offer excellent opportunities for engineers seeking to work abroad and could be great first options for you to consider.
