New labour force data release following warnings that construction is 141,000 workers short

24 September 2026

Today’s ABS Labour Force data for August showed the unemployment rate close in on a five-year high, even though over 39,000 jobs were created during the month.

Master Builders Australia Chief Economist Shane Garrett explained that Australia’s labour force expanded during August but that a disproportionately large share of the new entrants were unable to find work straightaway.

“Even though the labour market has softened, the construction industry is still not able to find enough of the site-ready workers that it needs. The policy framework which governs our sector’s workforce needs to improve so that the flow of new workers to our industry is increased.

“Without a larger and more productive construction workforce, it will be harder to deliver the homes, infrastructure and commercial projects Australia needs in the years to come.”

These figures come at the same time that the construction workforce shortage continues to add pressures on building costs and to project timelines.

Master Builders Australia CEO Denita Wawn says on the ground, many construction businesses are doing all they can to invest in the next generation of workers, while also looking for opportunities to improve productivity.

“The challenge is that businesses are carrying much of this burden in increasingly uncertain economic times. That’s why measures such as supporting Group Training Organisations, introducing a payroll tax rebate on apprenticeship wages and reforming Recognition of Prior Learning are so important.

“These policies and others were called for in our recently released Workforce Blueprint, which included modelling showing we are currently 141,000 construction workers short, with that shortfall forecast to blow out to almost one million by 2035 if nothing is done.

“Australians should call on their local Members of Parliament to act on the nation’s skilled workforce shortage. The sooner we act, the better placed Australia will be to tackle the challenge. The longer action is delayed, the harder and more expensive the solutions will become,” said Ms Wawn.

Media contact: Dylan Hafey, Adviser, Media & Government Relations

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