Tradie wages up 10.4 per cent as industry grapples with shortage

The Housing Industry Association found wages have spiked 10.4 per cent in the year to the September quarter of 2022.

Housing Industry Association senior economist Nicholas Ward said it was the result of a “persistent, severe shortage” of skilled trades.

As of the June quarter, there were more than 104,000 houses under construction across Australia, a record high and 81.2 per cent higher than pre-pandemic levels.

Renovation activity has also shot to record levels.

But there is also a record shortage of tradespeople to meet demand, as well as shortages of material.

“This elevated demand for home building has exacerbated the pre-existing shortage of skilled trades,” Ward said.

“The rise in the cash rate will slow building activity, but this is not expected to adversely affect demand for building trades on the ground until 2024.”

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The tradies most in demand are bricklayers and carpenters, the report found.

Ward said there was good news, with tradie apprentices rising 27 per cent from the March quarter 2019 to the March quarter 2022.

As these young workers develop proficiency, they will help the industry work through the large pipeline of work that has built up.

Ward also flagged that the spike in migration will improve the labour shortages after international travel stopped during the COVID-19 pandemic.

The border closures caused the number of migrant workers holding up the industry to plummet but now industry experts hope the return will solve skilled worker shortages.

“This improving source of labour supply will help builders and other businesses with the labour shortages that have been exacerbated by the pandemic,” she said.