A shortage of skilled tradespeople remains evident across Australia’s housing construction industry as a massive pipeline of civil infrastructure work is pulling tradies away from the home building sector, the latest report suggests.

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

The report provides a quarterly review of the availability of skilled trades and any demand pressures on trades operating within the residential building industry.

According to the report, the shortage of trades across Australia continued to ease during the September quarter (see chart).

Nevertheless, trade shortages remain at levels which are more severe compared with any time before COVID (see chart)

Shortages are evident across every trade. Bricklaying, ceramic tiling and roofing are particularly impacted.

Shortages are also evident across all regions, with Regional SA being most affected.

The shortages are occurring despite subdued conditions in new home construction – albeit with recent building approval data indicating that the sector is gaining momentum again.

Nationwide, the nation broke ground on just 165,000 new homes and apartments over the twelve months to 2024. This represents the lowest level of new housing commencements in twelve years.

HIA Senor Economist Tom Devitt said that the shortages are being driven by the current record pipeline of major public sector road and rail projects.

“Competition for skilled tradespeople in Australia remains stiff, with the home building industry competing for workers against a large public infrastructure pipeline,” Devitt said.

“There is a $155 billion pipeline of public sector construction work underway that has been absorbing available labour across the country.

“This competition is producing persistent trades shortages that, while less extreme than recent years, are still more acute than anything seen in the nearly two decades before the pandemic”

The latest report comes as HIA has called for actions to address skills shortages in its pre-budget submission.

Significant actions the group is calling for include:

  • apprentice and employer subsidies
  • targeted funding towards trade ready, pre-apprenticeship training
  • a comprehensive awareness program to encourage young people to take on a trade; and
  • development of a streamlined and simplified visa program for in-demand trades; and
  • development of a specific construction trade contractor visa tailored to suit the way work is arranged on building sites.

Devitt says that action is necessary to ensure that the nation has a sufficient number of skilled tradespeople to address housing shortages.

“Failure to address the acute, persistent and potentially worsening shortage of skilled trades will leave a major constraint, not just on housing affordability but on broader productivity and economic growth,” Devitt said.

 

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