Housing targets hinge on vocational skills alongside university graduates
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Photo by William Jacobs
In a bid to address Australia’s ongoing housing shortage, the Housing Industry Association (HIA) has underscored the importance of balancing university and vocational education. This call to action comes as the Australian Chamber of Commerce and Industry (ACCI) contributes to the national conversation on education and skills development.
HIA Executive Director of Future Workforce, Mike Hermon, emphasised the critical role universities play in the housing sector. “There was no question universities played a vital role in producing the architects, engineers, surveyors, planners and construction managers who help deliver Australia’s homes,” he stated. However, Hermon also highlighted the urgent need for skilled tradespeople who are essential to the physical construction of homes.
Australia’s ambitious target of building 1.2 million new homes is currently hampered by a significant skills gap. Hermon pointed out that the industry is short of 83,000 skilled tradespeople necessary to meet this demand. “We won’t achieve our housing ambitions unless we encourage more young Australians to see a trade as a first-choice career,” he asserted.
Vocational education, particularly in the construction sector, has shown promising outcomes. According to the latest figures from the National Centre for Vocational Education and Research, 95 per cent of construction apprentices and trainees secure employment upon completing their training. Hermon noted, “That’s an exceptional outcome and highlights the strength of demand across our industry.”
The pathway of a trade, Hermon argues, extends beyond traditional roles. “A trade is no longer just a pathway to working on the tools. It can lead to running your own business, becoming a licensed builder, site supervisor, estimator, project manager or moving into specialist areas that increasingly rely on digital technology, modern methods of construction and artificial intelligence,” he said.
This broad spectrum of career opportunities within the trades underscores the need for a more integrated approach to education. Hermon stated, “The debate should not be about university versus vocational education, but ensuring Australia’s education system reflects the workforce the country needs.”
The HIA’s stance is clear: a holistic approach to workforce development is essential for addressing the housing crisis. Hermon articulated the necessity for a diverse pipeline of professionals, “What we need is a pipeline of architects to design our homes, engineers to certify them and builders and tradies to bring them to life. Australia’s housing challenge won’t be solved unless all parts of that workforce are growing together.”
To support this growth, Hermon urged governments to maintain and enhance their support for apprenticeship commencements and completions. He also stressed the importance of providing balanced career advice to young Australians about the vast opportunities in residential construction.
“If we’re serious about improving housing affordability, we have to be equally serious about building the workforce that will deliver those homes,” Hermon concluded. “Every apprentice we fail to attract today is one less qualified tradie building Australia’s homes tomorrow.”
The HIA’s call for a balanced education system that fosters both university graduates and skilled tradespeople is a crucial step towards meeting Australia’s housing goals. As the nation grapples with the challenge of constructing over a million new homes, the integration of diverse educational pathways and workforce development strategies will be key to success.