The Australian construction industry is currently facing a severe labour shortage that has resulted in the loss of 27,000 tradespeople and construction workers over the last year.
This alarming situation threatens the government’s goal to build 1.2 million homes within the next five years.
Recent statistics from the National Centre for Vocational Education and Research (NCVER) revealed a troubling trend in the construction sector, with a reduction of 2,000 apprentices and a notable 25,000 decline in other construction-related roles such as labourers and drivers, Build-It reported.
The 2,000 figure amounts to a 7.1% decrease in apprenticeships nationwide, with an even sharper decline of 13.3% in female apprentices and trainees.
Shaun Schmitke of the NSW Master Builders Association highlighted the gravity of these figures during a recent 2GB Radio interview.
“These figures are very, very concerning,” Schmitke said. “We’re already feeling the impact on the building and construction industry. Project delays and cost blowouts are becoming the norm, and the situation is worsening.”
He also noted that thin profit margins in the sector make it difficult for companies to hire apprentices, exacerbating the workforce shortfall.
The decline in tradie numbers is a nationwide issue, affecting every state and territory:
The shortage of workers is more than a temporary problem; it signals a potential generational crisis.
Nathaniel Smith (pictured above) of the Master Plumbers Association voiced concerns about the aging workforce.
“Not enough boys and girls have gone into trades over the last 10, 30, or even 40 years,” Smith said. “We’ve got an aging generation of business owners in plumbing, electrical, and other trades who will be retiring within a decade. Unfortunately, we haven’t trained enough replacements to fill their shoes.”
This looming issue could severely affect Australia’s capability to meet its housing targets and manage population growth.
In response to the crisis, the federal government has stepped up by allocating $90 million in the 2024-25 budget to create 20,000 TAFE spots for apprenticeships and committing $265.1 million over four years to support apprentices and employers in priority occupations.
Despite these efforts, Smith argued that more is needed, especially in terms of supporting small businesses to hire apprentices amidst rising cost-of-living pressures.
“Incentives like tax breaks or additional financial support for employers could make a big difference,” he told 2GB Radio.
As Australia continues to grapple with this critical shortage, both government and industry leaders are called upon to bolster efforts and ensure the future stability of the construction industry.
Read the full story on Build-It.
