Report: NSW Faces Shortage of 150,000 Trade Workers Over the Next 15 Years
NSW is facing a challenge of not just “building it and they will come,” but rather a question of where the builders will come from.
An estimated 150,000 tradespeople will be needed over the next 15 years in New South Wales to support the state’s construction industry and address the housing shortage in the country.
The Insight Centre report, “Capitalising on the Next Construction Boom,” revealed that NSW had over $79.2 billion (US$50.9 billion) worth of construction projects this year, showing an increase from $75.5 billion in 2019.
However, the industry is facing challenges due to economic conditions, as highlighted by Master Builders Australia’s warning about rising inflation and decreased productivity in the sector based on data from the Australian Bureau of Statistics.
At the same time, the demand for homes continues to rise, adding pressure on the construction industry to deliver.
Labour shortages have emerged as the major constraint affecting building and construction activity, with industry experts emphasizing the need for government policies to address these challenges.
Furthermore, Incolink, the construction industry’s redundancy fund, points out the impending building boom in NSW, which is expected to be the largest in a generation, but stresses on the importance of supporting workers who have faced job losses and addressing other challenges within the industry.
The report indicates that the construction workforce needs to expand significantly, with an estimated 450,000 workers required in the next 15 years and a total project value set to reach $114 billion by 2040.
Building an additional 377,000 houses as part of the National Housing Accord is also on NSW’s agenda to combat housing shortages, further emphasizing the need for skilled workers in the sector.
Various initiatives, including exploring the potential of a skilled refugee workforce and government funding to boost skilled labor in the construction sector, are being considered to address the industry’s challenges and meet the growing demand for housing in Australia.
