The shortage of skilled trades in Australia is showing few signs of easing, despite a slight improvement in late 2024. The latest Housing Industry Association (HIA) Trades Availability Index recorded -0.47 in the December quarter, reflecting continued constraints in the residential building sector.
HIA Senior Economist Tom Devitt pointed to stiff competition for skilled workers, with home builders facing off against a vast public infrastructure pipeline worth $155 billion. The labour supply challenge has persisted post-pandemic, with shortages more acute than anything seen in nearly two decades before 2020.
The HIA’s All Hands on Deck report estimates that an additional 83,000 workers are needed to meet the Australian government’s Housing Accord target of 1.2 million new homes over five years. This represents a 30 per cent increase on current employment levels in key residential construction trades.
According to Devitt, immediate action is required from policymakers to bolster both skilled migration and domestic workforce development. The association’s pre-budget submission for 2025-26 outlines reforms to address chronic shortages, including apprentice and employer subsidies, targeted funding for trade-ready programs, and a public awareness push to encourage more young people to take up trades.
A central recommendation is the development of a streamlined visa program for high-demand trades, along with a construction trade contractor visa tailored to the nature of work in the industry. Without these measures, Devitt warned that Australia risks facing deeper trade shortages that would further impact housing affordability and economic growth.
The report also highlighted the regions facing the most severe shortages. Perth (-0.84), Brisbane (-0.65), and Adelaide (-0.47) topped the list, reflecting increased home-building activity in those cities. Regional South Australia recorded the worst shortage (-1.35), followed by regional Queensland (-0.75) and regional Western Australia (-0.59). Sydney and Melbourne fared slightly better but still struggled with worker availability.
Bricklayers (-1.02) and ceramic tilers (-0.84) remained in particularly short supply, with little improvement over the past year and a half. Other trades, including electrical work, plumbing, and site preparation, have seen some relief, with electricians nearing an equilibrium in availability by the end of 2024.
With demand for housing showing no signs of abating, the question remains: where will the workers come from to keep up with the ambitious targets?
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