Crippling labour shortage has home building targets at risk

The construction sector desperately needs new recruits as crippling labour shortages fuel the housing crisis - and a move to kill off work at home jobs could push more people into trades.

Tradies Thanasi Marsters and Jamie Burns from Burns Plumbing say the ongoing tradie shortage is effecting the number of houses being built. Picture: Thomas Lisson

A construction sector desperately seeking new recruits as crippling labour shortages fuel the housing crisis will benefit from corporate leaders moving to end the work-from-home era, an industry boss has revealed.

Housing Industry Association NSW Executive Director Brad Armitage has told The Daily Telegraph a push by businesses to kill off sought after work at home options will put careers as a tradie back on the radar of workforce entrants.

Mr Armitage says potential apprentices during the post-COVID period have veered away from trades to choose more comfortable home-based occupations, a trend he believes is poised to change at a critical time for his industry.

“In metropolitan areas, we’re in a war with universities over young people and the perceptions that a career in the building industry, or an apprenticeship, is sort of second rate,” he said.

“Absolutely the work-from-home thing is a factor that has played into that. So, if other areas of the workforce have to start going back to the office, it will change some choices, bring back some parity.”

His comments come as ambitious government goals to build more than a million homes across the country over the next five years is under serious threat from a critical lack of labour.

As the industry searches to boost workforce numbers, the HIA and the Property Council of Australia have welcomed a federal government scheme where apprentices will receive five $2000 payments to complete their training in a trade.

The Business Council of Australia also is calling on all sides of politics to support businesses with additional employer incentives when they take on apprentices.

The BCA proposes employers receive baseline support of up to $4000 per apprentice per year for the first two years of the apprenticeship to better reflect the costs of training.

Up to $3000 per apprentice per year would be paid to employers for the final years of training.

Small and medium businesses — where most apprentices are employed — would receive further funding if they could achieve 70 per cent average completion rates for apprentices, or hiring and supporting women in male-dominated trades and vice-versa.

An HIA report, All Hands on Deck, shows 278,000 skilled workers are employed across 12 key trades in Australia, with another 83,000 required if federal and state government home building targets are to be reached by 2029.

Tradie Thanasi Marsters from Burns Plumbing. Picture: Thomas Lisson

The National Housing Accord, a Federal Government initiative, has the goal of 1.2 million new homes to be built from mid-2024.

The NSW five-year target is 377,000 new homes but late last year the state was tracking at least 150,000 homes behind target.

The All Hands on Deck report breaks down national numbers for trades including carpenters, electricians, plumbers, painters, bricklayers, cabinetmakers, plasterers, tilers and concreters.

It also details the additional workers required in each trade to achieve the Housing Accord’s targets.

While there are more than 73,000 carpenters in Australia, another 22,000 are needed. Approximately 58,000 electricians are employed across the country, still 17,000 shy of the ideal number. An additional 12,000 plumbers also need to be added to a current figure of around 40,000.

Roof tilers, floor finishers and glaziers, with a combined 17,000 currently employed, are estimated to require a further 5,000 workers across the three trades.

Recommendations within the report include more training opportunities to make starting a new career an easier and more accessible process, supporting skilled migration and developing strategies to attract workers from other sectors.

BCA chief executive Bran Black said: “Businesses tell me that existing employer incentives don’t reflect the true cost of training an apprentice, and that means we need a new approach to ensure businesses are supported to train more people.

“Businesses play vital roles in training the next generation of skilled workers, and if employer incentives aren’t increased in amount and scope, we’ll see fewer employment opportunities offered, which will ultimately exacerbate our nationwide skills gaps.”

The BCA said COVID-era employer incentives saw a wage subsidy of up to $28,000 paid over the course of an apprenticeship. Currently, employees of priority trade apprentices receive $5000 in the apprentice’s first year, while non-priority employers receive nothing.

“Every-time employer incentives have been reduced in recent decades there has been a corresponding drop in apprentice numbers,” Mr Black said.

“Conversely, every increase in employer incentives has produced an uptick in apprentice commencements and completions.”

Originally published as Crippling labour shortage has home building targets at risk