Australia’s construction industry is facing a dire situation that could have significant repercussions for the livelihood of tradespeople across the nation. The recent revelation that the country saw a sharp decline in the number of apprentices and construction workers last year is sounding alarm bells among industry experts. With 27,000 fewer tradies in the workforce compared to the previous year, the federal government’s ambitious plan to build 1.2 million homes over the next five years is looking increasingly precarious.
The National Centre for Vocational Education and Research has highlighted a worrying trend: a 7.1 per cent drop in apprentices compared to 2023, including a 13.3 per cent decrease in female apprentices and trainees. This decline is not just a number; it represents a potential crisis in the making for the construction industry, which is already experiencing delays and cost blowouts due to labour shortages.
Veteran builder Scott Challen’s underscore the urgency of the situation. The disparity in wages between apprentices and labourers is causing confusion and dissatisfaction among the younger generation, who are essential for the industry’s future. Challen’s call for increased apprentice wage subsidies and a reevaluation of junior pay rates is a clarion call for immediate action.
The impact of this shortage is being felt across all states and territories, with significant drops in the number of tradies in training. From New South Wales to Western Australia, the decline is consistent and concerning. The construction industry is already operating on thin margins, and the added pressure of not being able to afford apprentices is a burden too heavy for many companies to bear.
As the older generation of tradies approaches retirement, the urgency to fill the gap with new talent becomes even more critical. Nathaniel Smith from the Master Plumbers Association warns of the consequences of not having trained enough tradespeople over the past decades to replace those retiring. The industry is at a crossroads, and without a fresh influx of skilled workers, the future looks bleak.
The government has taken steps to address the issue, with increased TAFE spots and budget allocations aimed at supporting apprentices and employers in priority occupations. However, as Smith points out, these measures may not be enough. The cost-of-living crisis is squeezing everyone, and small businesses, in particular, are feeling the pinch when it comes to taking on first-year apprentices.
What’s needed is a comprehensive strategy that includes more incentives for employers, such as tax breaks, to make apprenticeships more attractive and viable. Adjusting wages to create a fairer balance between apprentices and labourers is also crucial. Without these changes, the construction industry may struggle to meet the demands of the nation’s growth and infrastructure needs.
How do you think we can address the challenges facing our tradies today? Share your thoughts and experiences in the comments below, and let’s discuss how we can collectively support the skilled trades and ensure a strong future for Australia’s construction industry.
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This is an important article, which identifies the need for more tradespeople. Unfortunately, Australia along with many other countries has for some decades priorities the desire for school leavers to continue on to year 12 and University to the detriment of the trades.
Now, once again our government is trying to correct this situation and as pointed out in this article with suggestions of various strategies to attract people to apprenticeships. However, you have not mentioned the various strategies that are already in place to entice people to take up apprenticeships and the subsidies available to their employers. This would provide your readers with the reality of the current situation, while presenting a balanced view of the what is currently the situation.
Start with schools not pushing it upon school children that you must go to university. Possibly a few more trade schools could be opened, so at grade 10 students can find out what sort of jobs will be available and what they are interested in. For small businesses the headache of taking up an apprentice is very real and the subsidies to be applied for really do nothing. Apprentices need to be paid more, but not full wages as they are learning, as they don’t work at the same pace as fully trained construction workers or have the knowledge to solve different problems that arise on site. They also need time off to attend TAFE for courses, so are not on the tools, so the business is down one employee. Hopefully some solution needs to be found quickly as there will be a lag of maybe a decade to catch up with enough construction workers.
This will only get worse. There are several reasons, but mainly it is their parents that don’t want their children to be tradies.
One of the side effects in the shift to private schools is the reduction in the pool of potential tradies. After all parents will not accept the Children being plumbers, diesel mechanics or stone masons after they have spent $30,000 per year on their secondary school education. For their parents this would be seen as a waste. Gen Z who are the generation just entering the workforce now ( many are still at school) are relatively small in numbers. Consequently the will experience low unemployment rates in their formative years. This means they can pick and choose the work they do, leaving one job for another if they don’t feel fulfilled. Why should they become tradies, which is dirty hard work with early starts and is tough on the body? Even more money may not help. If they want more money they can move to WA for a few years to work in the mines, get involved with a start up hoping to sell for big money in a couple of years or they can trade cryptocurrencies?
This will be the attitude of Gen Z who are entering the workforce now.
The irony is in the future Artificial Intelligence will wipe out many white collar jobs (think law, accounting, architecture) whilst we are crying out for trades staff.