The latest HIA-Austral Bricks Trades Report has highlighted weaknesses concerned with new home building in mid-2011.
HIA Chief economist, Dr Harley Dale, explained that although pressure on skilled trade availability has eased, the cause of the this has been driven by soft demand conditions in the industry.
"The latest Trades Report shows a modest surplus of skilled labour," said Harley Dale. "The only other period where a modest surplus of labour, as opposed to a shortage, has been evident in the nine year history of the report was during the GFC in the June 2009 quarter."
Dr Dale went on to suggest that this dip in demand is an opportunity to build and strengthen the trade workforce.
"Now, during what policy makers have to ensure is only short term weakness in new residential construction, is precisely the time to concertedly invest in the housing industry's future skilled labour pool," added Harley Dale.
"That there is an underlying structural shortage of skilled labour for the housing industry is palpably obvious to all but the most blinded of observers. A kick-start to new home building is urgently required in 2011 and a larger pool of skilled labour than can currently be tapped into forms an essential part of ensuring a recovery is sustainable."
Executive director Nick Proud commented on the state of apprenticeship prospects within the trade industry. "Apprenticeships started dropped by 18% over 2009, which correlated with the easing in trades availability. A similar apprehension to take on apprentices in the current environment will again impact on apprenticeship starts and constrain future workforce capacity. That is a concern."
"The 2011 Federal Budget has provided $558 million as a mechanism enabling industries such as housing to meet the national tri-challenge of an undersupply of housing and tight rental availability, the need for a recovery in residential building activity, and an aging workforce attrition quandary. A range of policy options, and incentives that are primarily focused on helping employers to recruit new entrants in apprenticeships and up skilling workforce flexibility, are needed. The Workforce Development Fund is best positioned to focus on construction now," added Mr Proud.
