The building and construction industry is experiencing a critical labour shortage, according to Master Builders Australia CEO Denita Wawn.
Wawn highlighted the urgent need for more apprentices to start and complete their training to address the industry’s growing demand for skilled workers.
Wawn stated: “Over the year to September 2023, a total of 42,333 new apprentices started in the building and construction industry. This represents an appalling 25 per cent reduction on the previous 12-month period.”
She emphasised that despite being the largest employer of apprentices in Australia, the building and construction industry is facing challenges.
“We need more apprentices starting and completing their training in trades,” said Wawn.
The number of apprentices in training has decreased by 3 per cent since September 2022, from 124,120 to 120,881 in September 2023.
This decline in apprenticeship numbers is a significant concern for the industry, as highlighted by Wawn.
Wawn stressed the importance of vocational education and training (VET) in addressing the industry’s workforce challenges, stating: “VET is central to skills and knowledge development in the building and construction industry.”
To address the immediate labour shortage, Wawn called for a multifaceted approach.
She stressed the need to better utilise skilled migrants already in the country and highlighted the importance of recognising their professional capacity.
“We are not doing enough to plug this gap. There are not enough new entrants to the industry to meet building and construction targets, including 1.2 million new dwellings under the Housing Accord, or the transition to net zero by 2050,” Wawn added.
Master Builders Australia recently released a supplementary Budget submission focused on helping skilled migrants already in Australia navigate complex barriers to work in the industry.
Wawn emphasised that attracting more skilled trades into Australia should include leveraging the potential of migrants already in the country, as they could fill workforce gaps in the short term.
The labour shortage in the construction industry is caused by an aging workforce, a lack of new entrants, skill mismatches in vocational training, and competition from other sectors.
This shortage leads to delays in projects, increased costs, reduced productivity, and difficulty meeting housing and sustainability targets.
Potential solutions include investing in vocational training, improving migration policies, adopting technological advancements, and making the industry more appealing to younger workers.
