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{{propApi.successMessage}} {{region}} Change locationA boost to skills is a boost to productivity
A boost to skills is a boost to productivity
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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, as measured by a survey of builders.
“This comes as the HIA Trades Availability Index was measured at -0.40 in the June quarter 2025, a reading consistent with an undersupply of skilled labour and unchanged from the previous quarter,” added Mr Reardon.
The Index is a measure between +2.00 and -2.00, with a positive reading indicating easier access to skilled trades and vice-versa.
“Increasing the supply of homes and improving housing industry productivity will require a sufficient supply of skilled tradespeople.
“The shortage is more acute in areas where home building activity is picking up, including South Australia, Queensland and Western Australia.
“Australia’s two largest home building markets, New South Wales and Victoria, will further add to demand for skilled labour when activity there starts to pick up as well.
“With demand for skilled labour still exceeding supply, the cost of engaging skilled trades grew by 3.4 per cent in the year to June 2025, higher than pre-pandemic and higher than economy-wide wage growth.
“In order to help alleviate the shortage of tradespeople as activity picks up, access to overseas skilled trades is required in the short term.
“Australia’s population is increasing at a rapid rate, but these new migrants are not skilled tradespeople. There were only 6,086 migrants in home building occupations on Subclass 482 Visas at the end of March 2025.
“Current migration settings need to be tailored through a dedicated construction visa, due to the independent contracting nature of work in the housing industry.
“Limited access to overseas labour is only part of the solution and isn't a replacement for a more effective domestic workforce development strategy that is required to promote careers in the industry.
“But even while national unemployment remains exceptionally low, it is likely that Australia will see elevated demand for housing and limited access to labour,” concluded Mr Reardon.
Almost every market, barring Melbourne, continues to record a shortage of skilled trades. By capital city, Perth (-0.89) remained as the capital city with the most acute shortages, followed by Brisbane (-0.73), Adelaide (-0.54), Sydney (-0.32). Melbourne recorded a reading closer to equilibrium (+0.08).
Regional markets showed more acute shortages, with Regional South Australia (-0.96) having the worst reading, followed by regional Western Australia (-0.69), regional Queensland (-0.60), regional Victoria (-0.51) and regional New South Wales (-0.31).
By trade, only electrical (+0.02) remained in equilibrium while plumbing (-0.12) shifted from relatively easier availability in the previous quarter to a shortage. The most acute shortages were bricklaying (-0.85) and ceramic tiling (-0.70) despite seeing modest improvements compared to the previous quarter.
Download our latest HIA Trades Report
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