Industry leaders urge coordinated action as labour gaps widen
Australia’s leading construction and property groups have raised concerns over escalating workforce shortages in the civil construction sector, warning that these gaps could jeopardise the nation’s infrastructure pipeline and housing targets.
Trade bodies responded to the findings of Infrastructure Australia’s 2025 Infrastructure Market Capacity report, forecasting a shortfall of 300,000 workers in the civil construction sector by 2027. The shortage is expected to impact the delivery of essential infrastructure and the federal government’s Housing Accord target of 1.2 million new homes.
“The broader built environment is the backbone of housing supply,” said Denita Wawn (pictured top left), chief executive officer at Master Builders Australia. “Without the roads, rail, energy, water and community facilities that support our suburbs and regions, we will not deliver the homes Australians need.”
The Property Council of Australia echoed these concerns, highlighting that the shortage of skilled workers is a significant barrier to meeting both infrastructure and housing needs.
“Last-mile infrastructure, such as roads, water, sewerage and electricity, is critical to the delivery of much-needed new homes and logistics hubs that are so important in our everyday lives,” said Matthew Kandelaars (pictured top right), group executive policy and advocacy at the Property Council of Australia. “Delays in the delivery of these projects create serious bottlenecks for new industrial and housing projects.
“Welcomed investment in training and apprenticeships must be complemented by skilled migration to ensure we have the right workers with the right skills.”
Master Builders Australia has also called for urgent reforms to expand the workforce through faster skills recognition, streamlined migration pathways, and targeted incentives for apprentices and employers.
“If we want to deliver the homes, infrastructure and productivity gains Australians expect, we must ensure the civil construction workforce is equipped, expanded and properly supported,” Wawn said.
In addition, the Property Council has supported the report’s emphasis on encouraging the adoption of Modern Methods of Construction, including prefabrication and modular housing.
“With rising home construction costs, modular and prefabricated housing can help create new homes to a high standard at a lower cost, but more thinking is required,” Kandelaars said. “Following national moves to streamline regulations, governments must continue to work with industry to grow the sector at scale.”
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