A growing shortage of construction workers nationwide is likely to double by mid-2027 amid a glut of housing, defence, energy and transport projects.
The warning was contained in Infrastructure Australia’s 2025 Market Capacity Report which predicts a current shortfall of 141,000 workers will reach 300,000 by mid-2027 including 126,000 tradespeople and labourers.
But the Australian Constructors Association (ACA) believes the workers can be found especially if the productivity reforms it wants are realised.
“300,000-is a big, predicted shortfall but there’s capacity in the market now to deliver infrastructure projects such as hospitals, roads and new energy infrastructure,” says ACA chief executive officer Jon Davies.
“Many large construction businesses are currently reducing their workforce due to delays in bringing projects to market, particularly in the energy sector, so clients who act now can access experienced teams ready to deliver at a price that will not be achievable in just one- or two-years’ time.”
CONSTRUCTION PIPELINE
Davies says the net-zero energy transition, AUKUS nuclear submarine deal and 2032 Olympics Games will only intensify demand for workers.
“The looming workforce crunch is a wake-up call,” said Mr Davies.
“Improving productivity is the answer and it will require governments industry and unions to work differently.”
Davies says the ACA will keep pushing for a national construction strategy as part of sought-after reforms, calling it “a once-in-a-generation opportunity” to align governments, industry and unions.
The Tasmanian Government has already voiced fears that construction of its new McPoint stadium precinct in Hobart could lose workers to Brisbane’s 2023 Olympic Games construction boom; click here to read that story.
The WA government has also lured tradies from New Zealand to work on housing and other projects.
METRO HOUSING PLANS
In recent news, the NSW Government announced it will build more than 15,000 high-rise apartments in precincts around Punchbowl and Wiley Park Metro stations in Sydney.
With the stations due to open later this year, the government is eyeing new or upgraded homes, shops and services, more open spaces and pedestrian links and buildings ranging in height from six to 18 stories.
The government says there are almost 19,000 proposed homes statewide in the planning system with more than 1700 approved; it expects to unlock more than 170,000 new homes in 15 years.
MP for Canterbury Sophie Cotsis, which takes in the two suburbs, says Sydney’s inner south west is one of the fastest growing areas in NSW.
“This gives people the opportunity to live close to jobs, family and community and more people will now call this vibrant area home.”
REGIONAL NSW
Meanwhile, the government says 68,000 new homes will be built for regional NSW as it gave $3.8 million to help 20 local councils fast-track work like compiling technical studies and devising policy frameworks such as local housing strategies, infrastructure servicing plans contributions plans, and development control plans.
Planning Minister Paul Scully says they are backing regional communities by giving them the planning they need to deliver more homes sooner.
“This investment is about making sure councils have the tools to unlock land, co-ordinate infrastructure and support growing communities.”
