Lag time shortens in finding skilled labour

Finally, it looks like the difficult task of finding labour on building sites is making a turnaround, but not because of more tradies entering the workforce.

In the past 12 months, as the cost of a new home and land package exceeded the price of buying an established home in many growth corridors, we are seeing the number of new homes under construction declining, with builders reporting fewer difficulties scheduling skilled trades workers on their jobs.

The HIA Trades Report, released last week, provides a quarterly review of the availability of skilled trades and any demand pressures on trades operating in the residential building industry.

HIA executive director of future workforce Geordan Murray said that although availability of skilled workers remained worse than before the pandemic, the situation was now improving.

“The acute shortage of skilled trades workers is dissipating, although shortages persist and remain problematic in most areas. The improved availability of trades workers is largely contained to the two largest east coast states where the larger declines in home building activity have occurred.”

The report shows the demand for skilled workers remains strong in Western Australia, South Australia and in Queensland, primarily in the capital city markets in these states.

Trade shortages are continuing to contribute to rising trades prices which is pushing up the price of new homes.

Data shows that the price of skilled trades increased by 5.5 per cent in the 2023/24 fiscal year.

Mr Murray said while demand for skilled trades workers was presently high, these workers are cautious of the outlook for softer industry conditions over the year ahead.

“It is at this point of the industry cycle that employers become reluctant to take on apprentices. The trades workers who employ apprentices are typically running small businesses and their livelihoods are susceptible to the volatility of cycles in industry activity.

“They are very conscious of the risk of committing to employing and training an apprentice for four years when there is uncertainty about the pipeline of work ahead.

“As a consequence of the rising uncertainty, the number of apprentices commencing apprenticeships in a construction trade has dropped sharply.”

The latest data shows construction trade apprentice commencements are down by 17 per cent compared to the year earlier.

The HIA are continuing to urge government to be looking at ways to enable the industry to use the skilled migration system to address skill shortages, and creating training opportunities for local workers should be the priority. “If we are to see the shortages of skilled trades workers resolved there must be measures to support business to continue creating employment and training opportunities for trainees and apprentices throughout the business cycle,” Mr Murray said.