The NCVER has compiled a range of research on Industry Trends in Residential Construction which serves to highlight the central role the construction sector plays in Australia’s economy and workforce demand, while also pointing to significant structural pressures.
Residential construction is strongly linked to population growth, housing policy and economic cycles, with the Housing Accord target of 1.2 million new homes over five years intensifying demand for skilled labour in the sector.
A consistent theme across the research is the issue of persistent skill shortages, particularly in key trades. Importantly, the issue for employers and the VET sector is not just recruiting new workers into the industry but also the dominance of small businesses in the sector (98.7% of businesses employ 20 or fewer workers), the gender profile (67% of workers are male) and while the number of women in the sector is increasing they are “significantly more likely to leave the construction industry due to persistent barriers that include workplace culture, inflexible working conditions and limited career progression.”
Apprenticeship completions are a well known issue in VET (with reasons for non-completion mostly linked to non-VET issues). In residential construction completions are also an issue but employers also “often report” finding it difficult to attract apprentices and trainees.
A Victorian report, Sector snapshot: Victoria’s residential construction sector, cited in the research identifies that while most employers prefer apprenticeships as the primary pathway to work in the sector, “the number of builders employing labourers in entry-level roles is increasing.”
In response to the demand for construction workers, changing skills needs in the sector and an ageing workforce, BuildSkills Australia, the Jobs and Skills Council for the construction sector, has undertaken a Housing Workforce Capacity Study which “calls for a review of the training system to ensure it is better aligned with the future needs of the industry and has the capacity for the increased participation required to address the labour shortage. Some key areas detailed include:
- Adapting curriculums to keep pace with industry innovation and advancements
- Developing new qualifications to support specialised roles, including microcredentials
- Recruiting and accrediting qualified tradespeople as trainers
Addressing basic foundation skill gaps with students in construction training programs.”
