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Skilled Trades Shortages Persist Despite Housing Slump, HIA Warns

Skilled Trades Shortages Persist Despite Housing Slump, HIA Warns
Jeff Gibbs
Skilled trades: Australia is experiencing its lowest level of new home building commencements in over a decade, yet skilled trade shortages remain widespread, according to the Housing Industry Association (HIA).
The latest HIA Trades Report, released this week, reveals that the shortage of skilled trades is not being driven by residential construction activity, but rather by labour demands across other construction sectors and the broader economy.
Skilled Labour in High Demand Across All Regions
HIA Chief Economist Tim Reardon said the ongoing pressure on trade availability is “as acute as at any time since before the GFC,” even though housing construction is at historically low levels.
“Despite the downturn in home building, every market continues to face a shortage of skilled trades. The strongest shortages are now in areas with rising construction activity, such as Perth and Brisbane,” Mr Reardon said.
Shortage levels were most acute in:
- Perth (-0.84)
- Brisbane (-0.83)
- Regional South Australia (-0.67)
- Regional Victoria (-0.55)
In contrast, electrical (+0.05) and plumbing (+0.03) trades recorded a surplus for the first time since 2020.
Cost Pressures and Migration Gaps
Despite the subdued housing market, the price of skilled trades rose 5.5% in the year to March 2025—outpacing the national average wage growth of 3%.
Mr Reardon highlighted the urgent need for skilled migration reforms, including a dedicated construction visa, as only 4,229 of the 166,830 temporary skilled workers in Australia are currently employed in home building trades.
Call for Long-Term Domestic Workforce Strategy
Looking ahead, the HIA is calling for a robust domestic training strategy to attract new entrants into construction. This includes enhanced support for apprentices, training providers, and the businesses that mentor and employ them.
“Building 1.2 million homes over five years requires a long-term investment in skilled labour. Without that, shortages will only worsen as activity rebounds,” Mr Reardon concluded.
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