Australia’s construction industry is grappling with a severe workforce shortage, with a loss of 27,000 tradespeople and construction workers in the past year alone.
Experts are sounding alarms as the federal government’s ambitious target of building 1.2 million homes over the next five years hangs in the balance.
Recent data from the National Centre for Vocational Education and Research (NCVER) paints a grim picture. Compared to the previous year, Australia now has 2,000 fewer apprentices and 25,000 fewer non-trade roles, such as labourers and drivers.
This represents a 7.1 per cent decline in apprentice numbers nationwide, with an even steeper dropout rate of 13.3 per cent among female apprentices and trainees.
In a recent interview with 2GB Radio, Shaun Schmitke from the NSW Master Builders Association said these figures should have Ausies both in and outside of the industry concerned about the road ahead for construction.
“These figures are very, very concerning,” he said. “We’re already feeling the impact on the building and construction industry. Project delays and cost blowouts are becoming the norm, and the situation is worsening.”
Schmitke emphasized that the construction sector’s already razor-thin margins make it challenging for companies to take on apprentices, further compounding the issue.
State-by-state breakdown of tradie decline
Every state and territory has been affected by the drop in training numbers:
- New South Wales: Down 8.4 per cent
- Queensland: Down 4.7 per cent
- Victoria: Down 8.1 per cent
- Australian Capital Territory: Down 17.9 per cent
- Northern Territory: Down 4.8 per cent
- South Australia: Down 9.1 per cent
- Tasmania: Down 10.2 per cent
- Western Australia: Down 4.1 per cent
A race against time
The construction industry isn’t just battling a short-term crunch; it’s facing a generational crisis. Nathaniel Smith from the Master Plumbers Association expressed concern about the looming retirement of Baby Boomers who dominate the workforce.
“Not enough boys and girls have gone into trades over the last 10, 30, or even 40 years,” he explained during the radio interview.
“We’ve got an aging generation of business owners in plumbing, electrical, and other trades who will be retiring within a decade. Unfortunately, we haven’t trained enough replacements to fill their shoes.”
This lack of fresh talent could threaten Australia’s ability to meet its housing targets and address the growing demands of an expanding population.
Government is stepping up, but is it enough?
In response, the federal government has introduced measures to encourage more Australians to pursue trades. The 2024-25 budget allocated $90 million to fund 20,000 TAFE spots for apprenticeships and committed $265.1 million over four years to support apprentices and employers in priority occupations.
While these initiatives are promising, Smith believed more needs to be done.
“Cost-of-living pressures make it tough for small businesses to take on apprentices, especially first-years,” he said.
“Incentives like tax breaks or additional financial support for employers could make a big difference.”