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{{propApi.successMessage}} {{region}} Change locationSkilled trades shortage set to worsen without policy changes
Skilled trades shortage set to worsen without policy changes
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The HIA Trades Report released today provides a quarterly review of the availability of skilled trades and any demand pressures on trades operating in the residential building industry.
“Competition for skilled tradespeople in Australia remains stiff, with the home building industry competing for workers against a large public infrastructure pipeline,” added Mr Devitt.
“There is a $155 billion pipeline of public sector construction work underway that has been absorbing available labour across the country.
“This competition is producing persistent trades shortages that, while less extreme than recent years, are still more acute than anything seen in the nearly two decades before the pandemic.
“Action is needed from policymakers on skilled migration and domestic workforce development.
“HIA’s All Hands on Deck report highlights that Australia needs an additional 83,000 workers in key residential construction trades, a 30 per cent boost on current employment levels, to meet the Australian government’s Housing Accord target of 1.2 million new homes over five years.
“HIA’s 2025-2026 Pre-Budget Submission outlined a number of critical reforms needed to address the chronic and long-term skills shortages.
“Key amongst this was to provide apprentice and employer subsidies, targeted funding towards trade ready and pre-apprenticeship training and a comprehensive awareness program to encourage young people to take on a trade. The other key tool is to develop a streamlined and simplified visa program for in-demand trades and the development of a specific construction trade contractor visa tailored to suit the way work is arranged on building sites.
“Failure to address the acute, persistent and potentially worsening shortage of skilled trades will leave a major constraint, not just on housing affordability but on broader productivity and economic growth,” concluded Mr Devitt.
The most acute shortages of skilled trades by capital city (using two-quarter averages to reduce volatility) were in the housing markets showing the greatest improvements in on-the-ground home building activity, including Perth (-0.84), Brisbane (-0.65) and Adelaide (-0.47). Sydney (-0.31) and Melbourne (-0.31) recorded more modest trades shortages.This was also true across the corresponding regions, including regional South Australia (-1.35), regional Queensland (-0.75) and regional Western Australia (-0.59), compared to regional New South Wales (-0.46) and regional Victoria (-0.45).
Bricklaying (-1.02) and ceramic tiling (-0.84) trades saw the most acute shortages of those surveyed, not seeing much improvement in availability over the last 12-18 months. Most other trades have been seeing gradual improvement in availability. Electrical trades have consistently recorded the most ‘modest’ shortages, being quite close to ‘equilibrium’ availability at the end of 2024, with an index of just -0.09. This was followed by site preparation (-0.18) and plumbing (-0.19).
Get our latest HIA Trades Report
HIA Trade Availability Index
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Land prices accelerated in 2024
“The median price of residential land sold increased by 2.6 per cent nationally in the final quarter of 2024, to a new record high $369,530,” stated HIA Senior Economist Tom Devitt.
Increase to minimum wages from 1 July
The Fair Work Commission handed down its annual minimum wage decision, awarding a 3.5 per cent increase to the national minimum wage and modern award minimum wages.
Apprentices at Work: Pay, Safety and Fair Treatment
If you engage an apprentice in the residential building industry, there are some key requirements to keep on top of to meet your employer obligations. These include paying wages, entitlements and allowances correctly, ensuring a safe workplace, and preventing issues like discrimination and harassment.
Draft NSW Service and Installation Rules 2025
HIA provided comments on the Draft NSW Service and Installation Rules 2025.