Closing the Gap: Labour, Talent, and the Energy Transition


The Project Management Skills Gap

Global and Local Perspectives (2025)


Since 2020, businesses worldwide have faced disruption and transformation at a pace never seen before. What started as crisis response has become structural change—digital transformation, energy transition, sovereign capability programs, and new models of work.


Globally, the story is clear: the demand for project professionals is outstripping supply. Today there are nearly 40 million project professionals worldwide, and by 2035 that number could need to reach 65 million. Even under conservative forecasts, the world faces a shortfall of up to 30 million people in project management–related roles. Sectors like construction, technology, professional services, and manufacturing are projected to experience the largest gaps.


Labour Market Dynamics – A Closer Look


At a national level, the labour market remains tight. As of July 2025, the Australian unemployment rate stood at 4.2% in trend terms — a figure that masks wide sectoral and geographic disparities.


Technology is shedding people, but this appears cyclical a “realignment” more than a structural surplus.

Energy and Infrastructure sectors are struggling to secure enough people, with vacancies sitting in the 85th percentile.

Wage growth is at a 15-year high, but pay alone is not solving shortages when infrastructure, energy, healthcare, and technology are all competing for the same scarce talent.


Structural Constraints


Several systemic factors deepen the gap:

Ageing population → fewer entrants to trades and project roles, more retirements.

Global competition for skilled migration → inflow is constrained, especially for project-critical roles.

Skills shortage classification → rose from 16% (2010–2012) to 18–19% (2020–2021), and now sits at 36%, with trades, healthcare, and tech most affected.


Sectoral Pressures on Delivery


Energy transition projects are constrained by shortages in the electrical trades, compounded by aging demographics, apprentice attrition, and competition from mining. This drives up wages and delays delivery of renewable and grid projects.

Shipbuilding & defence (AUKUS, sovereign programs) face acute shortages, threatening timelines and capability development.

Renewables The renewables and hydrogen sectors are facing regional labour gaps, leading to greater reliance on FIFO/DIDO models. While these approaches can be effective in meeting immediate workforce needs, over time they present challenges—impacting individual wellbeing, workforce retention, and, in some cases, project cost and delivery timelines.

Post-pandemic workforce expectations are clashing with “back to office” mandates, creating tension in project teams where leaders and PMs seek flexibility while clients expect accountability.


Talent as a Commercial Imperative


Our recent CX Survey with the Top 100 clients of a Tier 1 global contractor highlighted a striking shift:

Attraction and retention of talent are seen as critical risks.

Clients are beginning to tie talent stability directly to contractor risk assessments.

Some are reluctant to partner with firms whose workforce pipeline appears unstable—not just at the leadership level, but also at the individual contributor level.

This elevates talent management from an HR issue to a contractual and commercial priority.


The Opportunity


The Project Management Skills Gap is no longer abstract. It is being felt daily in delayed infrastructure, stretched energy projects, stalled innovation pipelines, and heightened client scrutiny.

Organisations that can stabilise their talent pipeline and invest in next-generation skills—from technical delivery to leadership, digital fluency, and stakeholder management—will have a competitive edge.

The gap is both a risk and an opportunity: a challenge for delivery today, but also a chance for firms and professionals to position themselves as indispensable to the transformations that define the next decade


There is more scrutiny on spending and limited scope for greater spending. This means that organisations are taking more care of how, and where they outlay their capital, and they want professionals to deliver their projects.



A few things to think about at the early or concept phase of your project(s) are:


  1. What talent resources are required?
  2. Where is this talent
  3. How long will you need them?
  4. How long will it take to get these resources?
  5. What are you doing to manage your current resources?
  6. Who are your resourcing partners?



What causes the skills shortage?


Just consider the number of projects being invested in, at a local and global level. It is this investment in Projects will continue to drive a significant upsurge in demand for project talent.


Projects change the world, and project management professionals are the change agents.

This is one profession where life is never dull and where demand for skilled practitioners will continue to be high.


Contact Us



workorce planning

Workforce Planning: More Than a Spreadsheet Exercise

By SG • August 21, 2025
Workforce planning is often reactive, not strategic. With vacancies high and skills gaps widening, future-focused planning is critical.

Broader industry contribution

June 7, 2023
Attraction and retention “How to attract and retain talent, in the scope of major infrastructure projects” for Australian Local Government Infrastructure Yearbook 2021 https://algiy.partica.online/algiy/algiy-2021/flipbook/122/ Major Projects Conference 2022 https://www.nswconference.com.au/speakers.html Webinar Webinar briefing – sample of what we have delivered in the past (targeted at Graduates) in partnership with AIPM https://www.youtube.com/watch?v=Au7tNN0_tbU Are employers spending sufficient time supporting staff and building a resilient culture? What’s an acceptable staff turnover – none, 6%, 15%? https://www.linkedin.com/feed/update/urn:li:activity:6833872083806769152/ The Future of PMOs - PMO Vision 2030 ProNEXUS were of the PMO Vision 2030 - The Future of PMOs Workshop. The workshop was to discuss the impact and effectiveness of a PMO/EPMO function as part of the Association of International Project Management Officers (AIPMO). Feedback/what to expect from us: Extremely relevant. Massive importance trying to retain & employ Loved the presenter’s style and outlook The conversation style flowed very well Presented really well. The casual approach made for easy and open Conversation. Very relevant topic Engaging speaker, supported by presentation that was shared post meeting Good interaction, more of a conversation than a typical presentation. Nik was excellent. Great perspective and good tips There was some robust discussion particular around different views. Challenging member views was very good The casual approach made for easy and open Conversation. Good speaker, very interactive The feedback was very positive and averaged the following ratings out of 10 for your presentation:  Relevance of Topic: 9.2 Guest Speaker: 9.5

What does a Project Sponsor actually do?

December 30, 2022
The role of a Project Sponsor is to work closely with the Organisation to provide governance and leadership. What makes a good Project Sponsor? An effective Project Sponsor is able to articulate and demonstrate the strategic value of a project at the Board, Organisational, and Project level. They understand the importance of developing and refining the business case and ensuring this aligns with the business strategy. The Project Sponsor typically has a depth of experience within the organisation and is a well-respected individual. The most successful Project Sponsors have a consistent track record in leadership and they are effective communicators. They have demonstrated their capability to influence all facets of the business. What does a Project Sponsor do? A Project Sponsor is part of the initial planning phase of a project. They work in collaboration with key stakeholders to determine what the key outcomes should be. They will:- Determine the availability of resources (financial and human capital) Approve project scope and changes Formulate an ongoing communication plan Work on refining the implementation strategy from project status to business as usual Approve (sign off) each phase of a project Provide support to the project and help resolve conflict or potential conflict Put in place the necessary project controls Help to mitigate risks and remove obstacles that may deter progress Be resilient and emotionally intelligent Ensure adherence to Governance standards Agree to “what success looks like” It is this macro view that adds a certain level of credibility and legitimacy. The Project Sponsor should be the key decision-maker. They are ultimately responsible for delivering the project and adding value to the organisation. The success of the project isn’t about ticking the various boxes along the way, ensuring. What does an Executive Sponsor do? While the Project Sponsor is appointed by the organisation the Executive Sponsor is appointed by the Board. The link between organisation and its project governance practices. The Executive Sponsor is usually a Senior Executive. They will have an intimate understanding of their strategy, financial position, organisational culture, and market dynamics. As such they carry a level of authority and influence beyond just being a project advocate. How much influence does an Executive Sponsor have? The Executive Sponsor will have the necessary influence to determine how a project is progressing, they are focussed on delivering beyond just quality and outcome, they want to ensure the investment yields a return from a strategic, financial, cultural, and market position. Should the Project not deliver against some or all of the pre-determined criteria the Executive Sponsor would be well within their scope to question the organisation’s investment. They can either defend or challenge the Project’s progress. Regardless of whichever position they take, they are (as a Board appointed representative) accountable to the Board. With any strategic role, all parties must take the time and make time to ensure the Project and its stakeholders (including the Board) and engaging on a regular basis. Contact Us Sources Crawford, L. & Cooke-Davies, T. (2005). Project governance: the pivotal role of the executive sponsor. Paper presented at PMI® Global Congress 2005—North America, Toronto, Ontario, Canada. Newtown Square, PA: Project Management Institute. International Journal of Project Management Time and budget: the twin imperatives of a project sponsor Volume 15, Issue 3, June 1997, Pages 181-186 JNevan Wright Auckland Institute of Technology, Auckland, New Zealand