Boots are needed on the ground as unemployment dips to 7 month-low

22 January 2026

Australia’s unemployment rate dipped to a 7-month low during December 2025 according to Master Builders Australia (MBA)’s Chief Economist Shane Garrett. The analysis of the latest Australian Bureau of Statistics (ABS) figures by the peak industry body says 65,000 new jobs were created during the month and 165,382 more people are at work across the Australian Economy compared with a year ago.

Mr Garrett acknowledged that the labour market was clearly strong, however this brought challenges with it.

“The deeper story behind these figures is that there just aren’t enough workers to meet demand. Labour shortages continue to plague our industry, limiting the amount of work that our industry can get done. Fewer new homes are getting built as a result of labour supply issues.

“A tighter labour market also places more pressure on the Reserve Bank to increase interest rates in order to curb inflationary pressures. If this happens, our construction businesses will be hit with heavier finance costs and weaker demand,” commented Mr Garrett.

MBA CEO Denita Wawn said today that these figures emphasise the industry’s concerns regarding the leaking and shrinking labour pipeline and that reforming the domestic track as well as leaning into skilled migration must be a priority for the Government.

“This means reducing cost and administrative barriers for SMEs and regional employers, recognising construction as a national priority sector and aligning migration intake with verified workforce demand as well as expanding the Pacific Australia Labour Mobility (PALM) program to include non-licensed construction trades.

“The current inability to activate skilled migrants already in Australia due to recognition and licensing barriers must be investigated as this further reduces the effectiveness of employer sponsored migration pathways.

“On the domestic track, the Productivity Commission has laid the groundwork in its recommendations, aligned with what MBA have continued to advance, including for a redesign of the apprenticeship incentives and programs to better support commencements and completions for both traditional and non-traditional students.

“In addition, stronger school to trade pathways, RPL pilot and credit transfer frameworks, endorsing seed funding and responsibility to Buildskills Australia to coordinate trade-specific pilots as well as digital skills initiatives.

“The infrastructure, housing and commercial projects that are required to build this nation over the next decade can’t even get off the ground without boots on the ground and that’s why these reforms are so urgent, necessary and crucial to the future of this country,” concluded Ms Wawn.

Media contact: Dylan Hafey, Media Advisor

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