The HIA Trades Report released yesterday provides a quarterly review of the availability of skilled trades and any demand pressures on trades operating in the residential building industry.
“The acute shortage of skilled trades workers is dissipating, although shortages persist and remain problematic in most areas”
Geordan Murray, HIA Executive Director explains, “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. 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.” The price of skilled trades increased by 5.5 per cent in the 2023/24 fiscal year.
As a consequence of the rising uncertainty;
The number of apprentices commencing apprenticeships in a construction trade has dropped sharply.
“As the number of new homes under construction continues to decline builders are reporting fewer difficulties scheduling skilled trades workers on their jobs, although availability of skilled workers remains worse than prior to the pandemic,” stated Geordan Murray, HIA Executive Director – Future Workforce.
Reluctance to employ apprentices
“While demand for skilled trades workers is currently 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.”
Apprentice numbers drop
“As a consequence of the rising uncertainty, the number of apprentices commencing apprenticeships in a construction trade has dropped sharply.
“The latest data shows that construction trade apprentice commencements are down by 17 per cent compared to the year earlier.”
How do we resolve the issue?
“While the government should be looking at ways to enable the industry to use the skilled migration system to address skill shortages, 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,” concluded Mr Murray.
