Falling apprentice numbers a worry for housing targets

Lacklustre trade apprenticeship numbers do not bode well for national home-building targets. (Brendan Esposito/AAP PHOTOS)

Apprenticeship numbers have plunged and there are growing fears Australia may not be training enough tradies to build much-needed homes.

With demand for housing rising and a national construction target in danger of being missed, weak training rates are a pressing concern.

Construction apprentice starts have steadily slowed over the past four years.

Australia training tradies
There are fears Australia may not be training up enough tradies to build much-needed homes.

Brett Schimming from BuildSkills Australia, which helps the government and construction sector address workforce challenges, said the 2020 peak was artificially supported by pandemic-era payments.

"These wage subsidies led to a 50 per cent increase in apprenticeships compared to normal levels," Mr Schimming told AAP.

"Now the subsidies have been removed, we’re seeing a reversion to the trend."

Construction apprentices have returned to a long-term average of about 22,000 a year.

The latest data showed the downward trend continuing, with commencements sinking almost nine per cent in the year to March.

Industry figures are concerned there won't be enough apprentices to meet future needs.

Master Builders estimates at least 130,000 more workers will be needed to meet a national target of 1.2 million home over five years.

“We urgently need governments to look at solutions to increase the number of tradies, increase the number of apprentices, and help Australian builders increase supply so we can come out the other side of this housing crisis,” chief executive Denita Wawn said.

Work underway on workforce strategy
Work is underway on a national workforce plan for the construction, property and water industries.

Work is underway on a national workforce plan for the construction, property and water industries, which is expected to be released soon.

Separately, the federal government is pushing several policies to ease pressure on the housing market, including incentives to spur more build-to-rent homes.

It also wants to establish a help-to-buy scheme, which would allow first-home buyers to purchase a property with a lower deposit.

However, both proposals remain in limbo, with the coalition opposed and Labor locked in negotiations with the Greens.

"We could have dealt with this legislation," Finance Minister Katy Gallagher said.

"Unfortunately, the opposition and the Greens voted to delay it and not allow it to even be debated for two months. 

"So if they've changed their position, the Greens know our door is always open."

The Greens have offered to back the changes in return for a freeze on rents or changes to negative gearing, which Labor has rejected.

Greens leader Adam Bandt said he wanted to see the government give some ground, arguing housing changes were sorely needed.

"This tinkering around the edges while the problem gets worse on a daily basis for people is not the solution," he said.

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