Australia continues to grapple with tight labour market

19 March 2026

Labour market conditions in Australia remain tight according to new ABS data out today.

Master Builders Australia Chief Economist Shane Garrett commented “Demand for labour remains very strong with an additional 48,900 workers hired across the economy during February. Even though the unemployment rate rose to 4.3 per cent, construction businesses are still struggling to find the workers they need so badly.

“BuildSkills Australia estimates that our industry needs 116,700 more workers to meet housing demand alone and 520,000 overall to address shortages across housing and infrastructure. Without more workers, our industry cannot deliver the homes and infrastructure that we’re so short of,” added Mr Garrett.

Master Builders Australia CEO Denita Wawn says this renews calls on the federal government to adopt the measures outlined in Master Builders Australia’s Pre-Budget Submission, including:

New domestic initiatives: Coordinate and fund trade-specific pilots including those that test new ways of training delivering and implement a Stage-Based Retention and Completion Incentive.

Reform existing incentives: Expand Fee-Free Vocational Education and Training access and the eligibility for the Key Apprenticeship Program to include civil and commercial builders and apprentices and extend the Group Training Organisation Reimbursement Program for at least 12 months beyond its April 2026.

Skilled Migration: Tradies must be included in the priority 1 skilled migration visa pathway along with an expansion of the Pacific Australia Labour Mobility (PALM) program to include building and construction and the introduction of a dedicated Construction Skills Pathway visa.

“To fill this shortage, we need vital reforms to the domestic apprenticeship pathway outlined in our Pre-Budget Submission, and in the meantime, we need to better incentivise highly skilled migrants in occupations facing domestic shortages.

“The labour demand in these latest figures and the shortage across the board is resulting in more delays, higher costs, and flatlined productivity in the sector, an environment the Federal Government cannot afford if we are to meet the National Housing Accord,” said Ms Wawn.

Media contact: Dylan Hafey, Media Advisor

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