Australia is facing a growing shortage of skilled trades workers, with the construction workforce gap potentially approaching one million workers by 2035 if urgent action is not taken.

A new report from Master Builders Australia has warned that the country’s existing shortage of construction workers could expand dramatically over the next decade. The report estimates that an annual workforce deficit of around 85,100 workers could grow to approximately 935,600 workers by 2035 if current conditions remain unchanged.

Check Your Eligibility in 60 seconds

Even Strong Reforms May Not Close the Gap

Master Builders Australia said the shortage is linked to a structural imbalance between the number of workers being trained and the workforce required to deliver Australia’s future construction and infrastructure projects.

The organisation estimates that even under an optimistic scenario involving major policy reforms, Australia could still face a shortage of about 84,100 workers by 2035.

The projected workforce gap comes as Australia prepares to deliver around $242 billion in infrastructure projects over five years, while also managing the long-term workforce requirements associated with the transition towards net zero.

Infrastructure Australia previously warned that the construction and infrastructure sector could be around 300,000 workers short of demand at the peak of the infrastructure pipeline in 2027.

Migration Could Help Unlock Skilled Workers

Master Builders Australia has called for changes to migration settings alongside reforms to Australia’s domestic training system.

According to the report, recognising the prior learning and qualifications of migrants already living in Australia could help bring around 18,400 qualified workers into the construction workforce.

Master Builders chief executive Denita Wawn said migration would remain an important part of addressing the shortage, but stressed that Australia also needs to strengthen its domestic skills pipeline.

She said delaying action would make the workforce challenge increasingly difficult and costly to address.

The organisation has proposed 31 additional measures aimed at increasing the number of workers entering and completing construction training. These include a payroll tax rebate on apprenticeship wages, expanding group training organisations and introducing a construction training bond to improve completion rates.

Government Focuses on TAFE and Apprenticeships

Skills and Training Minister Andrew Giles said the government was working to address Australia's skills shortages through targeted skilled migration as well as greater investment in TAFE and apprenticeship programs.

The government has highlighted Free TAFE qualifications and incentives worth up to $10,000 for new apprentices in housing construction as part of efforts to increase the domestic supply of skilled workers.

Giles also said the government was working to make better use of the skills brought by migrants already in Australia.

Construction Worker Visas Have Increased

The number of visas granted to construction workers has increased significantly in recent years.

According to the report, construction-related skilled visas have tripled since 2019. During the 2024–25 financial year, 15,524 skilled visas were granted to construction workers, representing the highest number recorded in the past decade.

The federal budget has also allocated $85 million to help migrants have their existing skills and qualifications recognised more quickly.

Meanwhile, the fee-free TAFE program has recorded 25,705 construction-sector completions since its launch in 2023.

Check Your Eligibility in 60 seconds

Australia Needs More Skilled Tradies

Australia’s projected workforce shortage highlights the growing pressure on the construction sector as the country attempts to meet its housing, infrastructure and economic goals.

With demand for construction workers expected to remain strong, Master Builders Australia argues that a combination of skilled migration, faster recognition of overseas experience, apprenticeships, TAFE training and broader workforce reforms will be required.

Without significant changes, the report suggests Australia could face a tradie shortage of close to 935,600 workers by 2035, creating further challenges for housing construction and major infrastructure projects.