Is there a solution to Australia’s ‘severe lack of tradespeople’?
Ongoing skills shortages are impeding the federal government’s bold housing vision, but a few key changes could open up new possibilities for the construction sector.
In August last year, the Australian government made an ambitious declaration: it aimed to construct 1.2 million “well-located homes” over five years from 2024.
However, the construction workers whose shoulders this task has fallen upon are concerned that Australia’s ongoing labour shortage in the construction sector will prevent the completion of this herculean task.
Housing Industry Association (HIA) managing director Jocelyn Martin stated: “The federal government’s target of building 1.2 million homes over the next five years will fall well short, if Australia’s chronic shortage of skilled tradespeople is not dealt with soon.”
“A strong construction workforce is the only way that Australia will ever solve the problem of housing affordability.”
Ms Martin revealed that the HIA recently lodged its pre-budget submission to the Australian government urging for a major sector reform.
In particular, the HIA recommended significant changes to be made in the area of education.
“Too often, doing a trade or going into construction is seen as a lesser career option,” explained Ms Martin.
“We are calling on the federal government to instigate a widespread education program to better promote the substantive career opportunities that exist in the building industry.”
As well as promotion, the HIA advised the government to increase access to construction career opportunities through financial subsidisation.
Ms Martin stated: “HIA would like the government to make a clear long-term commitment to indexed apprentice and employer subsidies to encourage more employers to take on apprentices and to support them through their apprenticeships.”
The HIA also advised the government to incentivise apprentices to continue their training through a “tool bonus” or “tool rewards program” consisting of “$1,000 tool bonus starter kit and a $500 supplement per year”.
“This would help build up their toolkits and reward for year-on-year milestones through their apprenticeship,” said Ms Martin.
Finally, the HIA acknowledged that a wider economic and immigration reform is essential to mitigate the construction crisis.
Recently, HIA chief economist Tim Reardon cited cash rate rises as a major reason for the ongoing shortage of new builds, with some states seeing approvals drop -30 per cent in two years.
“Economic uncertainty leads to greater business risk for builders,” said Ms Martin.
She stated that “as well as policies to help attract apprentices, meaningful reform to the immigration system needs to be implemented to replenish the dwindling supply of skilled workers”, including a streamlined visa education program.
“HIA recognises the challenges brought about by the lack of skills won’t be fixed overnight, but there are some measures that the government could take to help ease the labour shortage,” Ms Martin concluded.
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