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Labour market data reinforces call for skilled migration reform

labour-market-data-reinforces-call-for-skilled-migration-reform

19 February 2026

Today’s Australian Bureau of Statistics (ABS) labour market data further demonstrates a tight labour market, as experienced by the construction sector struggling to plug a labour shortage of over 100,000 that continues to hold the industry back.

Master Builders Australia’s Chief Economist, Shane Garrett said in his analysis that demand for workers in Australia remains very strong, with 50,000 full-time jobs created during January alone. This was mostly because existing workers switched from part time to full-time hours.

“The data shows construction businesses are continuing to grapple with labour shortages, particularly skilled tradies resulting in even higher building costs,” said Mr Garrett.

MBA CEO Denita Wawn said today that to build more new homes, an effective skilled migration system must be a priority in any immigration policy.

“We have renewed our calls for a targeted skilled migration system that delivers more homes for Australians.

“Now is the time to fix our skilled migration system, with our advocacy continuing in the lead up to the Federal Budget and in submissions to current inquiries on productivity and the value of skilled migration.

“Tomorrow, Master Builders will lodge its recommended package of reforms as part of its submission to the Parliamentary Committee on Productivity. These proposals aim to shore up the domestic labour pipeline but also use skilled migration as a bridge to fill current skills needs.

“We need to recognise construction as a national priority sector and activate skilled migrants already in Australia, who are working below their skill level.

“Australia needs a dedicated Construction Skills Pathway visa as well as an expansion of the Pacific Australia Labour Mobility (PALM) program to include non-licensed and entry-level construction trades.

“Costs and administrative barriers must also be reduced for small to medium businesses and regional employers.

“The current skilled migration system is not working and is slowing down new home construction, infrastructure projects and the delivery of social infrastructure like schools and hospitals, limiting productivity, damaging affordability and eroding industry capability,” concluded Ms Wawn.

Media contact: Dylan Hafey, Media Advisor

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

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