Half a million workers need to enter the sector by the end of 2026, report says
Master Builders Australia has released a blueprint to address the critical shortage of construction workers that is hindering economic recovery and productivity growth.
Denita Wawn (pictured above), Master Builders Australia CEO, said the paper outlines the policy priorities for attracting, recruiting, training, and retaining workers for the industry in the coming years.
“Construction is the backbone of the Australian economy, employing approximately 1.3 million people, providing infrastructure, commercial and community buildings, and homes for the growing population,” Wawn said.
“With Australia's population projected to grow by over 50% between 2022 and 2060, reaching nearly 40 million people, the industry will require a significant workforce to undertake the necessary building and construction work.”
Master Builders estimated that 486,000 workers would need to enter the building and construction industry by the end of 2026 to replace those who leave the industry and to keep pace with demand. Of the required workforce, 229,000 will have to fill technician and trade roles, the vast majority of which will enter the industry through a trade apprenticeship.
“The nature of work in the industry is evolving due to increasing business specialisation, more offsite building, frequent job changes, technology integration, and complex regulatory requirements,” Wawn said.
“Understanding the emerging and future workforce skills needs is critical for ensuring flexible pathways in the industry that meet the changing and diverse needs of workers, businesses, and employers.
“The blueprint aims to address this by attracting new workers into the industry, retaining current and emerging workers, and ensuring that training and education products and pathways remain up-to-date and flexible.”
Wawn highlighted the need to address the bias pushing young people toward university at the expense of VET, including enhancing the quality of careers education in secondary and senior secondary schools. Another critical issue was to attract more women to the industry to increase the pool of potential workers.
“Governments are urged to tackle these issues as a key aspect of the inflationary challenge facing our industry,” Wawn said.
See the table below for the overview of recommendations.
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