Construction’s annual workforce shortfall hits 130,000

Two women on a construction site. | Newsreel
Australia's building and construction industry faces a shortfall of 130,000 workers. | Photo: Fat Camera (iStock)

Australia’s building and construction industry needs an additional 130,000 workers this year to overcome shortages.

New figures revealed in Master Builders Australia‘s Future of the Workforce report showed that number was on top of those required for natural attrition.

Master Builders CEO Denita Wawn said Federal and State governments needed to prioritise reforms that would attract and retain more workers.

Ms Wawn said there was no quick fix to the critical workforce shortages.

“It will require a holistic approach across Federal Government portfolios from migration, skills and training through to industrial relations.”

She said proposed solutions included increasing trade apprenticeships, leveraging skilled migration from similar regions, and fostering a diverse, inclusive culture to attract new talent from across the economy.

“While it is a significant number, this presents an opportunity for growth in an industry that is pivotal to the nation’s economic success.”

Ms Wawn said the report took a closer look at the current state of the industry, the impact of chronic workforce shortages, and recommended sensible policy measures to relieve the pressure.

She said as the country’s second largest industry employer, one in 11 Australians work in building and construction, but the number of people joining the industry each year was not enough to keep up with demand.

“This is the very workforce needed to deliver the homes and supporting infrastructure we desperately need.

“Productivity has declined 18 percent over the last decade putting significant pressures on workers and employers.”

Ms Wawn said despite challenges, the industry was in a unique position to grow and innovate.

“There is a strong pipeline of work for the industry across the housing, commercial and civil sectors, presenting a great opportunity for people to join.”

Read the full report and full list of recommendations.