Skilled trades shortages persist despite easing demand, report finds

Shortages of skilled trades workers in the residential building industry are easing but remain problematic in most areas, according to the latest HIA Trades Report.

The Housing Industry Association’s (HIA) quarterly review, released on [DATE], indicates that while the acute shortage of skilled trades workers is dissipating, the issue continues to drive up construction costs.

Geordan Murray, HIA Executive Director – Future Workforce, said: “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.”

The report found that the price of skilled trades increased by 5.5 per cent in the 2023/24 fiscal year, contributing to rising new home prices.

Murray noted that improved availability of trades workers is largely confined to New South Wales and Victoria, where 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,” he added.

The report also highlights a sharp drop in construction trade apprentice commencements, down 17 per cent compared to the previous year.

Murray expressed concern about this trend, stating: “It is at this point of the industry cycle that employers become reluctant to take on apprentices.”

He explained that trades workers who employ apprentices are typically running small businesses and are cautious about committing to four-year training periods amid uncertain work pipelines.

The HIA is calling for government measures to support businesses in creating employment and training opportunities for trainees and apprentices throughout the business cycle.

“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,” Murray concluded.

The findings underscore the ongoing challenges in the residential construction sector, balancing current skill shortages with the need for long-term workforce development in an uncertain economic climate.