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“As we recognise the essential role of skilled trades in the residential construction sector on this International Tradesperson Day, the most critical questions to ask is whether the industry has the workforce capacity to deliver the number of homes required to get Australia out of our housing crisis? Unfortunately, we do not.
“We want to promote the great career opportunity that a skilled trade provides. The chance to start your own business, satisfaction of providing housing to the community, and as a stable career path trades are less exposed to technological changes such as AI.
“Due to several factors, including an aging workforce and competition for trades from other sectors - such as infrastructure and renewables projects – the next generation of trades has not kept pace.
“It is estimated that there are around 277,800 skilled trades workers in the residential building industry, which highlights the extent of the shortfall.
“The additional trades needed also only represents the net increase in the workforce that will be required. The number of new additions to the workforce will need to be even greater than this to offset the number of workers as they leave the industry.
“Though a range of solutions are available to address Australia’s estimated 83,300 tradie shortfall. To start with, it is important that pathways into these trades is open and transparent and as high school students finish their senior school education a trade is considered a viable career option.
"Ensuring that there are readily available and current best-practice training opportunities for people looking to begin a career in the industry, improved pathways for skilled migration, and attracting workers from other industries or segments of the construction industry all also have a role to play.
“The housing shortage that is driving up housing costs for Australian households can only be reduced through efficient delivery of new housing in greater quantities than has been achieved in the past. The workforce of the housing industry must grow if this is to occur,” concluded Mr Hermon.
Mike Hermon, Executive Director Future Workforce 0407 684 551
The Housing Industry Association (HIA) welcomes the release of BuildSkills Australia’s Housing Workforce Capacity Study, which highlights the need to strengthen Australia’s residential construction workforce to meet the National Housing Accord target of 1.2 million new homes by 2029.
“Trade shortages loom as a major threat to reaching the Housing Accord target of building 1.2million homes by 2029,” said HIA Executive Director - Future Workforce, Mike Hermon.
“The Victorian government’s Housing Statement is approaching its two-year anniversary. Since that time the Victorian government has implemented some positive reforms, but it is becoming clear that we will not have enough people to build these homes as quickly as we need,” stated HIA Executive Director Victoria, Keith Ryan.
With the focus of the national economic debate on improving productivity following the recent roundtable, HIA used our submission to the Productivity Commission’s Five Pillars reforms to call on the Federal Government to act swiftly to lift productivity and unlock new housing supply.