It’s no secret that Australia is facing a growing shortage of construction workers—an issue that’s testing the industry’s ability to meet the nation’s rising demand for new infrastructure.
Experts estimate that Australia will need an additional half a million construction workers over the next five years. This is just to keep pace with growing demand.
Experts are warning that unless this issue is addressed, the consequences could be significant.
So what is the issue, and what can be done about it?
What is the issue?
The shortage of construction workers is being felt most acutely in the skilled trades, which are some of the most in-demand construction trades. They make up more than half of the roles required.
Unfortunately, the situation is only expected to worsen. According to Master Builders Australia, the industry is losing around 8 per cent of its workforce each year. Concerningly, only half of those workers are being replaced.. This widening gap between retirements and new entrants is placing serious and growing strain on the sector.
The shortage comes at a time of unprecedented demand for construction workers.
The government has embarked on a major infrastructure agenda, including major projects such as the Suburban Rail Loop and the Metro Tunnel. At the same time, it is also working to increase housing supply in response to the national housing crisis.
What is the impact?
Industry experts warn that without urgent action, the ongoing shortage of construction workers will jeopardise Australia’s ability to meet its ambitious target of building 1.2 million new homes by 2029.
Labour shortages are already causing significant delays in project timelines. Over the past decade, the average time to build a unit block has blown out by ten months. Detached homes and townhouses are also taking longer, with average build times increasing by around three months. These delays reflect the mounting pressure on the sector’s limited workforce and resources.
There are also concerns that workforce shortages could cause construction costs to increase. While construction costs soared during the COVID-19 pandemic. While these have since eased experts are warning staffing shortages could cause them to re-escalate.
How can this be addressed?
A key part of the solution lies in attracting more young people to consider careers in the construction industry.
Experts say it’s crucial to challenge the outdated perception that trades are a “second-best” option compared to university education. This mindset shift needs to start in schools, where students should learn about the many benefits of a career in the trades. These include job security, practical skills, and earning potential in construction.
In addition, more support is needed to help businesses take on apprentices. Many construction companies are small operations and may not have the resources to train new workers without financial assistance. Expanding apprenticeship incentives and support programs would help ease the burden and create more entry pathways into the industry.
Ready to build your future?
With demand for construction workers at an all-time high, there’s never been a better time to explore a career in the industry. Whether you’re just starting out or looking to take the next step, Melbourne Resume Writers is here to support your journey.
We offer a range of services tailored to the construction industry. These include professional resume writing, cover letter preparation, and LinkedIn profile updates. No matter your trade or level of experience, we’ll help you stand out and secure your next opportunity.
Article References
Master Builders Australia (June 2024) ‘The Future of the Workforce: Apprentices in building & construction’, Master Builders Australia, accessed 7 August 2025.
Terzon, E (6 August 2025) ‘Cotality warns building industry cannot keep pace with building approvals in race to fix housing crisis’, ABC News, accessed 7 August 2025.