All trades which are involved in Australia’s housing construction industry remain in short supply, new data shows.

The Housing Industry Association has released the June quarter edition of its HIA Trades Report.

The report provides a quarterly review of price and availability movements across 13 skilled trade occupations which are critical in new home building.

Overall, it found that there has been a moderation in trade shortages since the peak of the detached housing construction boom in the middle of 2022 (see chart).

This has occurred amid an easing of shortages in New South Wales and Victoria which has occurred on account of subdued home-building conditions in these markets.

However, overall shortages remain for all trade occupations which are tracked in the report.

Shortages are particularly acute in bricklaying, ceramic timing, roofing, other trades, carpentry and plastering.

Shortages exist across both metropolitan and rural areas across each of the five main states which are tracked in the report.

In particular, significant shortages remain in Queensland, South Australia and Western Australia.

The ongoing shortage is leading to pressure on trade prices.

All up, prices of skilled construction trades increased by 5.5 percent 2023/24.

The latest data comes as Australia’s housing construction industry has experienced a significant downturn in following a previous record boom in detached house construction which occurred on the back of COVID related incentives.

That downturn has seen the number of dwelling commencements drop to their lowest levels in a decade.

The report also come as trainee and apprentice hiring activity has returned to normal levels following a spike which occurred during COVID on account of special apprentice hiring incentives.

At 41,935, the number of people who commenced training or apprenticeships in construction across calendar 2023 was well below the record of 54,035 that was set during calendar 2022 but remains above pre-COVID levels of 33,455 in calendar 2019.

The data also comes as the Commonwealth Government is undertaking a review of the Australian Apprenticeship Incentive System, which provides financial support for apprentices, trainees and employers who operate in priority industries.

Industry groups have argued that current supports which are offered under the scheme need to be maintained.

In a statement, Geordan Murray, HIA Executive Director – Future Workforce, said that trade shortages continue to exist notwithstanding that the degree of shortage has eased.

“As the number of new homes under construction continues to decline, builders are reporting fewer difficulties scheduling skilled trades workers on their jobs, although availability of skilled workers remains worse than prior to the pandemic,” Murray said.

“The acute shortage of skilled trades workers is dissipating, although shortages persist and remain problematic in most areas.

“The improved availability of trades workers is largely contained to the two largest east coast states where the larger declines in home building activity have occurred. Demand for skilled workers remains strong in Western Australia, South Australia and in Queensland, primarily in the capital city markets in these states.”

Murray encouraged the Government to retain support for employers in taking on new apprentices.

“While demand for skilled trades workers is currently high, these workers are cautious of the outlook for softer industry conditions over the year ahead,” he said.

“It is at this point of the industry cycle that employers become reluctant to take on apprentices.

“The trades workers who employ apprentices are typically running small businesses and their livelihoods are susceptible to the volatility of cycles in industry activity. They are very conscious of the risk of committing to employing and training an apprentice for four years when there is uncertainty about the pipeline of work ahead.

“As a consequence of the rising uncertainty, the number of apprentices commencing apprenticeships in a construction trade has dropped sharply.

“The latest data shows that construction trade apprentice commencements are down by 17 per cent compared to the year earlier (as noted above, this is largely a return to pre-COVID levels of apprenticeship commencements).

“While the government should be looking at ways to enable the industry to use the skilled migration system to address skill shortages, creating training opportunities for local workers should be the priority.

“If we are to see the shortages of skilled trades workers resolved there must be measures to support business to continue creating employment and training opportunities for trainees and apprentices throughout the business cycle.”