Australia needs to add almost 140,0000 people to its housing construction workforce between now and 2029 in order to achieve national housing targets, a new report suggests.

And 20 actions have been recommended to make this happen.

Last week, BuildSkills Australia released its Housing Workforce Capacity Study.

The study presents detailed modelling of the labour requirements which are needed to deliver upon the target of completing 1.2 million new homes over the five years from 1 July 2024 under the National Housing Accord.

It also explores a range of policy options to improve the sector’s workforce capacity.

According to the report, Australia needs to add an additional 139,700 residential construction workers over the six-year period between 2023 and 2029 if it is to meet Accord targets. This would take the nation’s residential construction workforce from just under 500,000 workers in 2023 to over 600,000 workers by 2029.

Without action, however, the report warns that the nation’s housing construction workforce will expand by only 23,000 during this period under a ‘business as usual’ approach.

This leaves an additional 116,700 workers who will be required in order to support the higher levels of activity which are needed to deliver upon the Accord.

To address this, the report makes 20 recommendations to:

  • boost apprenticeship completion rates
  • attract more women into construction
  • secure a larger share of skilled migrants for work in residential construction
  • improve productivity (and thus deliver more homes with fewer workers); and
  • scale up the Vocational Education Training (VET) system to boost training system capacity.

Within each of these areas, the report makes a series of recommendations.

To boost apprenticeship completion rates, for example, suggested actions include: payroll tax relief for residential construction firms who hire apprentices; directing apprentice wage subsidies through Group Training Organisations rather than directly subsidising employers; a new digital platform to streamline apprenticeship administration processes; higher tax three thresholds for apprentices; targeted apprenticeship programs for mature age apprentices; a pre-apprenticeship training program; and development of an effective approach to promote careers in construction to school students..

On female apprenticeships, the report recommends adoption of the Culture Standard on all government projects along with a new paid placement program for mid-career women who wish to transition into construction.

(Australia will need an extra 16,700 residential construction workers over and above anticipated workforce growth in order to achieve national housing targets by 2029.)

Industry leaders welcomed the report’s release.

“The report provides a clear assessment of the workforce challenge and offers a range of practical options for industry and government,” Housing Industry Association Managing Director Jocelyn Martin said.

“BuildSkills Australia has produced a careful and evidence-based analysis of the workforce pressures facing residential construction.

“The findings reinforce what HIA has been saying for some time, Australia must increase the supply of skilled workers if we are to keep up with housing demand.”

Master Builders Australia CEO Denita Wawn said that builders are ready to deliver the necessary homes but cautioned that the workforce challenges is real and immediate.

“The commitment to addressing skills and workforce shortages is crucial in achieving the National Housing Accord,” Wawn said.

“This report gives governments a practical playbook to act swiftly and in a coordinated fashion so that labour supply and training capacity don’t become the handbrake on housing.

“Government must pull the high-impact levers to reduce the cost and friction of taking on apprentices, open clear pathways for women and mid-career entrants, modernise migration, drive productivity through procurement and planning, and expand the training system’s bandwidth.

“Do these things now and we can turn commitments into keys in doors.”

 

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