Australia’s construction industry is facing a critical labor shortage, with industry analysts exploring new ways to plug a gap the size of half a million workers.
The construction industry is the backbone of the Australian economy, employing approximately 1.3 million people. It provides infrastructure, commercial and community buildings and homes for the growing population.
With Australia’s population projected to grow by over 50 percent between 2022 and 2060, reaching nearly 40 million people, the industry will require a significant workforce to undertake the necessary building and construction work.
In order to meet growth projections and replace workers that choose to leave the industry, it will require 486,000 workers to join the industry by the end of 2026. Of that, nearly half — 229,000 workers — will need to be hired in technician and trade roles.
There are a number of factors contributing to the labor shortage in the construction industry. It has been noted that fewer young people are aspiring to undertake vocational education courses. This is likely due to a number of factors, including the perception that vocational education is not as prestigious as university education, and the fact that vocational education courses are often seen as being less flexible and less transferable to other industries.
Another factor contributing to the labor shortage is that the construction industry is naturally evolving through increasing business specialization, more offsite building, frequent job changes, greater technology use, and complex regulatory requirements. This means that the skills required in the construction industry are constantly changing, and it can be difficult for workers to keep up with the latest trends.
The construction industry is also facing a challenge in attracting women into the workforce. In 2022, only 8.3 percent of construction commencements were female. This is despite the fact that there are a number of benefits to working in the construction industry, such as good pay, job security, and opportunities for advancement.
There are a number of things that can be done to address the labor shortage in the construction industry. One thing that can be done is to improve the quality of career education in secondary and senior secondary schools. This means providing middle and high school students with the ability to learn about careers in the construction industry that they might find motivating and rewarding, regardless of the pathway.
Another thing that can be done is to make it easier for workers to upskill and reskill. This could be done by providing financial assistance for workers to undertake training, or by making it easier for workers to transfer their skills from one industry to another.
The construction industry is a vital part of the Australian economy, and it is important to do everything possible to address the labor shortage. By taking steps to improve the quality of career education and make it easier for workers to upskill and reskill, Australia can ensure that its construction industry has the workforce it needs to meet the challenges of the future.
Gary Fleisher, the Modcoach
