HIA shines a light on trade skills shortages

HIA shines a light on trade skills shortages

The Housing Industry Association (HIA) is highlighting an urgent need to expand apprentice training to address ongoing housing shortages and meet future housing demand.

HIA Executive Director Future Workforce, Mike Hermon said workforce shortages are a significant issue for the region.

“Workforce shortages remain one of the biggest constraints on increasing home building activity, with the nation needing an estimated 83,000 additional skilled workers across our key trades,” Mike said.

“Shortages across key residential construction trades, particularly carpentry, are limiting building capacity across the states. Builders across the country are telling us the same thing – demand for housing is there, but access to skilled labour is holding projects back.

HIA said a recent survey they delivered of small business members indicated the cost and access to skilled traders were two top pressures on local builders.

“The survey also showed that 67 per cent of respondents said they were having trouble recruiting new staff or retaining existing workers,” Mike said.

“If we do not train more apprentices now, the homes Australia needs simply will not be built.

“Residential construction is a hands-on industry, and apprenticeships provide the practical, on-site training that cannot be replicated in a classroom alone – today’s apprentices are tomorrow’s carpenters, builders and site supervisors.

“HIA welcomes government incentives that are helping employers take on apprentices, including the Priority Hiring Incentive, along with the Key Apprenticeship Program (KAP), to help apprentices purchase tools or meet costs of living challenges while training. These incentives are working and are encouraging more businesses to invest in training.

“However, they must be maintained, simplified and extended if they are to have a lasting impact on housing supply.”

Trade apprenticeships across industries including construction, beauty, energy and manufacturing are declining. National Centre for Vocational Education Research (NCVER) data indicated between June 2024 and June 2025, trade apprenticeships fell by 7.3 per cent and non-trade apprenticeships by 20.2 per cent.

IMAGE | Trades in discussion between Exceed Homes Owner, Paul Urbbaniak; Minister for Skills and Training, Hon Andrew Giles MP; and Apprentice, Max Mercer.

HIA Hunter

As Australia's peak residential building, renovation and development industry association, HIA's mission is to promote policies and provide services which enhance members' business practices, products and profitability, consistent with the highest standards of professional and commercial conduct.

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