Australia’s construction sector is under mounting pressure as it strives to meet housing and infrastructure demands amid a growing population. Yet, a persistent shortage of skilled labour threatens to derail progress.
According to Denita Wawn, CEO of Master Builders Australia, more than 500,000 new workers are needed over the next five years to both replace retirees and expand the industry’s workforce.
With both major political parties tightening migration policies, the responsibility of meeting this demand increasingly falls on the domestic labour force.
“Every extra apprentice gets us closer to meeting our workforce and housing goals,” Wawn said.
Wawn stressed that vocational training must become a more attractive and viable career path. Too many young people are being steered toward university, while apprenticeship programs suffer from high dropout rates—nearly 50% fail to complete their trade training.
“That’s not good enough—not for industry, not for young people, and certainly not for Australia’s housing future and economy,” Wawn said, adding that a failure to address the issue could cost the economy $57 billion in GDP over the next five years.
Encouragingly, both Labor and the Coalition have recently announced new apprenticeship support initiatives.
Labor’s Key Apprenticeship Program will offer $10,000 in staged payments for residential construction apprentices from July 2025—a model Master Builders has long supported.
Meanwhile, the Coalition’s plan includes a 10% wage subsidy (up to $12,000) for small and medium businesses hiring apprentices in key trades, alongside a matched $10,000 apprentice payment.
Wawn praised these policies as smart and practical, but said more is needed to help small businesses, which make up 98% of the construction sector, manage the high costs of training.
These initiatives are in line with Master Builders’ federal election campaign, More Homes For Aussies, which calls for urgent action to expand housing supply and infrastructure development nationwide.
Wawn emphasised that financial support alone won’t solve the problem. A broader cultural shift is needed—one that recognises apprenticeships as equal in value to university degrees.
“We must shift the cultural mindset that sees university as the only path to success,” she said.
Practical reforms should include better career education in schools, earlier exposure to trades, expanded opportunities for women, and stronger wraparound supports like mentoring and wellbeing programs.
Ultimately, addressing the housing crisis will require more than just materials and planning approvals—it starts with people.
“It’s time for governments, industry, schools, and communities to work together to ensure we can support the next generation of builders and tradies to pick up the tools and help build more homes for Aussies,” Wawn said.
