Productivity Commission’s solution to shrinking labour pipeline

19 December 2025

Master Builders Australia (MBA) broadly supports the recommendations from the Productivity Commission (PC)’s newly released Building a Skilled and Adaptable Workforce report, which in short recommends:

• National quality frameworks for instructional materials and edtech.
• Clearer, faster and more transparent post-secondary pathways through improved credit transfer and recognition of prior learning (RPL).
• Risk-based reform to occupational entry requirements and expanded entry pathways linked to National Competition Policy measures to incentivise reform.

MBA CEO, Denita Wawn commends the Commission’s work however notes additional measures will be necessary to uplift the sector’s skills and deepen the workforce pipeline.

“Several of the PC’s recommendations directly align with positions MBA advanced in its submissions and advocacy to Government including staging a national RPL pilot and credit transfer framework, endorsing seed funding and responsibility to Buildskills Australia to coordinate trade-specific pilots, digital skills initiatives, employer engagement, RPL Hubs and migrant bridging programs as well as embedding stronger school to trade pathways.

“They also address our calls for a redesign of the apprenticeship incentives and programs, to better support commencements and completions for both traditional and non-traditional students. With the current Key Apprenticeship Program due to end in December 2026, there is an opportunity to ensure that there is support for apprenticeships across the entire building and construction industry.

“A key gap, that we will continue to pursue with the Government, is around migrant skills recognition, faster bridging programs and practical gap training for overseas-qualified trades. Addressing this requires a dedicated construction workforce pathway, priority processing, and trialling a building and construction-specific stream within the Pacific Australia Labour Mobility (PALM) Scheme.

“Current data shows that the construction apprentice pipeline is shrinking and leaking, with new starts down and more apprentices leaving than finishing. This report’s recommendations, the additional measures proposed and the work of BuildSkills Australia lays the groundwork, the Government must now drive this home to deliver practical results and homes for Australians,” concluded Ms. Wawn.

Media contact: Dylan Hafey, Media Advisor

0497 330 064 | dylan.hafey@masterbuilders.com.au