Description
There has been growing concern about skill shortages in a number of sectors in the Australian labour market in the past couple of years with an increased demand for some skills as a result of improvements in the Australian economy. However, such concerns are not particularly new since skill shortages are a recurring and persistent feature of the Australian labour market. In this report, available evidence about patterns and trends in trades employment and training in the building and construction industry is reviewed to gauge the nature and extent of any skill shortages in these building and construction trades.
Summary
About the research
This report on skill shortages in the building and construction trades is based on the analysis provided by NCVER to the Building and Construction Working Group. It also draws upon key information provided to the working group by the Department of Employment, Workplace Relations and Small Business (DEWRSB).
The main points from the report
The building and construction industry shows a very cyclical trend of total employment and the current cycle is one of decline, even though the numbers of apprentices are continuing to increase.
Demand for apprentices and trainees are continuing with the numbers of apprentices increasing against declining employment in the building and construction skilled trades workforce.
Although commencements of apprentices and trainees have been showing an increasing trend in recent years, the numbers of completions are showing a declining trend. This suggests that insufficient entry (commencements) is not necessarily the problem, but that getting apprentices to complete their training must be a critical element of any strategy to boost skills in the building and construction trades area.
Job vacancies for the building and construction trades have shown a declining trend since early 2000, although the current government policy to increase the first home buyers grant to $14 000 should see this trend reversed in the near future. Coupled with low completions and a decline in commencements in 2000, potential vacancies will need to be sourced from non-apprentice pathways, migration or from re-entrants (around 41% of qualified building and construction tradespersons are currently working in their trades) to the building and construction industry.
Helping to counter the need for skilled people from non-apprenticeship pathways, migration or re-entrants are forecasts of average (as compared to the whole trades workforce) wastage rates for the building and construction industry in the near future.
To try and entice skilled tradespersons back into the industry somewhat surprisingly improved pay and career prospects were not major considerations, while the availability of trade and non trade employment (into managerial or supervisory roles) were the major considerations.
The current building and construction trades workforce will almost certainly need re-skilling (around 45% of the building and construction trades workforce have no formal qualifications) as the industry is moving more towards people with high level technical skills.
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