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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).
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HIA Trade Availability Index
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Signs of a pulse in Canberra building approvals
Building approvals for dwellings in Canberra for the year to the end of March have shown some signs that the market may be turning the corner but still remain well below government targets.
Low volume of home building but labour shortages linger
“Australia has just seen its two weakest years of new home commencements in over a decade, meaning these ongoing shortages of skilled trades are not being caused by home building activity,” stated HIA Chief Economist, Tim Reardon.
Building approvals strengthen in March quarter
“There were 48,620 new homes approved for construction in the first quarter of 2025, up by 20.8 per cent on a year earlier,” stated HIA Senior Economist Tom Devitt.
New Government must put housing as first order of business
“The Housing Industry Association (HIA) calls on the newly elected Federal Government to make housing a first-order priority from day one, any delay or political grandstanding will only deepen the nation’s housing crisis,” HIA Managing Director Jocelyn Martin said today.