Australia’s critical skills shortage threatening housing goals
- Written by HIA
"Labour force data continues to reinforce the alarming picture that while there are boots to fill in the residential building industry, there simply aren’t enough people to fill those boots,” said Matt King, Senior Economist at the Housing Industry Association.
“Data out today from the Australian Bureau of Statistics (ABS) highlights the ongoing resilience of the Australian labour market and the robust demand for labour, especially for skilled workers in key sectors such as the residential building industry,” added Mr King.
“This troubling gap between the demand for skilled trades and its supply risks significantly impeding the nation’s ability to meet the ambitious housing target of 1.2 million new homes over five years.
“According to the ABS, in November 2024, private sector job vacancies were 308,000, an increase of 4.7 per cent from August 2024.
“The data also reveals that construction sector job vacancies were up 33.5 per cent from pre-COVID period (January 2020 to November 2024).
“These figures echo HIA estimates that an additional 83,000 skilled workers will be required to deliver the government’s housing target. However, the current pipeline of skilled labour in the construction industry is far from sufficient.
“The persistent shortage of qualified tradespeople and construction professionals is compounding existing challenges, such as escalating construction costs and project delays.
“The situation is reaching a critical point, the housing industry plays a pivotal role in providing Australians with affordable and secure homes, but we are facing an unprecedented workforce crisis.
“Without urgent action to increase the number of skilled workers in the construction sector, Australia risks falling well short of its 1.2 million home target. This would have adverse long-term consequences for housing affordability and the broader economy,
“There are a range of policy solutions available, but not one alone can improve the current shortages.
“While recent initiatives, like increased funding for vocational education and apprenticeship programs, are a step in the right direction, much more needs to be done to support the construction industry and meet the growing housing demand.
“The delivery of adequate housing to meet ongoing and underlying demand must be a priority and comprehensively responding to these persistent skills shortages is a key part of improving housing supply,” concluded Matt King.
