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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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“Home building materials have continued to experience only modest cost increases, up by 1.6 per cent in the 2024/25 financial year,” stated HIA Senior Economist, Maurice Tapang.
Productivity Commission backs HIA calls for major regulation overhaul
“Today’s interim report from the Productivity Commission overwhelmingly backs what HIA has long been saying - that the regulatory burden on businesses is getting worse in this country and there is need for a major overhaul on the approach to regulation,” said HIA Managing Director, Jocelyn Martin.
HIA welcomes key findings of interim Productivity Commission’s report
“The Housing Industry Association (HIA) welcomes the release of the Queensland Productivity Commission’s interim report into construction productivity It is a significant and necessary step toward overcoming the housing supply challenges facing Queensland,” said Michael Roberts, HIA Executive Director Queensland.
Building approvals pick up 2024/25
“New home building approvals in the 2024/25 financial year were up by 13.9 per cent compared to their 2023/24 trough,” stated HIA Senior Economist Tom Devitt.