Construction workforce issues contributing to national housing target shortfall

ABC NEWS (Australia)

Australia's housing supply shortage is being significantly influenced by a lack of construction workers. Master Builders Australia estimates the industry needs an extra 130,000 workers to reach the national target of 1.2 million homes by mid-2029.

Transcript

00:00Sweating it out in the Darwin heat, third year carpentry apprentice Johnny Fish couldn't

00:08imagine doing anything else.

00:10I definitely like being out in the weather, I like using my hands, like I said, it's

00:15a place for me.

00:18Across town at TAFE, Cooper Heidemann is another who loves his work.

00:22I want to stay in here for my career, I want to progress through the ranks and one day

00:26be a manager.

00:27Although both NTA chippies are destined for long careers in construction, the same can't

00:33be said for everyone who enters the sector.

00:36In 2023, just under 42,000 people commenced an apprenticeship in construction, a 22% drop

00:43compared to the year before.

00:46Completions were also down by 15%, with just over 21,400 people finishing an apprenticeship

00:53in 2023.

00:55The apprentice downturn comes as a Productivity Commission report this week noted the current

01:00workforce is insufficient to meet policy objectives, such as the nation's aim of building 1.2

01:07million homes by 2029.

01:10We're probably short somewhere in the order of 120,000 to 130,000 workers based on Build

01:15Skills Australia's data.

01:17Certainly that lack of capacity and indeed a lack of productivity has played a big part

01:22in the current housing crisis.

01:24With many people priced out of the market, housing is a key issue ahead of this year's

01:29federal election.

01:30And although a larger workforce is crucial for boosting supply, it's not the only factor

01:35at play.

01:36We have a situation at the moment where we saw construction costs rise by about 40% over

01:43the last few years.

01:44It means a lot of projects are just not financially viable.

01:47A crisis on the mind of voters ahead of the upcoming federal election.

01:54For more UN videos visit www.un.org

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