Australia’s construction sector is facing a deepening worker shortage according to new Australian Bureau of Statistics (ABS) data, with a tight labour market intensifying as too few new workers enter the workforce to meet demand.
Australia’s unemployment rate remained steady at 4.3% during March 2026.
However, the number of full-time jobs in the economy increased by 52,500.
This was partly the result of 34,600 people switching from part time to full-time hours.
“Even though March was dominated by the Middle East crisis, demand for labour was still very strong.
"As a result, large numbers of part-time workers switched to full-time hours.
"This pattern suggests that the number of new workers joining the labour force is currently too small,” said Master Builders Australia chief economist, Shane Garrett.
Master Builders CEO Denita Wawn said to fill the severe worker shortage in the construction sector, we need a skilled migration pathway that works as a bridge as it does in other countries while domestic apprenticeship reforms come online.
“The current skilled migration system is fragmented, costly and suffers from slow skills recognition.
"Trades remain significantly under-represented, and Australia is failing to utilise skilled migrants already in the country.
“Even with significant reform to local vocational education and training, it will take three to five years before additional apprentices or graduates translate into fully qualified tradespeople.
“If done right, an improved system could deliver 2.4 houses per skilled migrant, according to Activate Australia Skills, offsetting increased demand on housing and helping to reach construction targets including the National Housing Accord ,” said Wawn.
