New labour force data underscores the construction sector’s need for skilled migration

16 April 2026

New ABS Labour data indicates that Australia’s job market remains tight, with an insufficient number of new workers joining the labour force.

Australia’s unemployment rate remained at 4.3 per cent during March 2026. However, the number of full-time jobs in the economy increased by 52,500. This was partly the result of 34,600 people switching from part time to full-time hours.

“Even though March was dominated by the Middle East crisis, demand for labour was still very strong. As a result, large numbers of part-time workers switched to full-time hours. This pattern suggests that the number of new workers joining the labour force is currently too small,” commented Master Builders Australia Chief Economist Shane Garrett.

Master Builders CEO Denita Wawn said to fill the severe worker shortage in the construction sector, we need a skilled migration pathway that works as a bridge as it does in other countries while domestic apprenticeship reforms come online.

“The current skilled migration system is fragmented, costly and suffers from slow skills recognition. Trades remain significantly under-represented, and Australia is failing to utilise skilled migrants already in the country.

“Even with significant reform to local vocational education and training, it will take three to five years before additional apprentices or graduates translate into fully qualified tradespeople.

“If done right, an improved system could deliver 2.4 houses per skilled migrant, according to Activate Australia Skills, offsetting increased demand on housing and helping to reach construction targets including the National Housing Accord ,” said Ms Wawn.

Master Builders Australia’s Pre-Budget Submission outlines measures that are essential to a targeted immigration program to support construction, including:

• Make construction a National Priority: Construction must be recognised as a national priority, and tradies must be included in the priority 1 skilled migration visa pathway.
• Expand PALM: the Pacific Australia Labour Mobility (PALM) program must be expanded to include non-licensed construction roles, with integrated training and clear pathways to permanent employment.
• Skills recognition: Skills recognition and licensing must be streamlined, and we must activate the estimated 18,400 skilled permanent migrants already here currently working below their skill level.
• New Visas: Establish a dedicated Construction Skills Pathway visa to fast-track qualified tradespeople and technicians, drawing on international best practice.
• Reduce costs: Reducing employer costs and administrative burden by cutting or removing the Skilling Australia Fund levy, reducing charges, and introducing small business friendly sponsorship rules.
• Clear the backlog: Resourcing temporary visa processing to meet current and emerging demand.

Media contact: Dylan Hafey, Media Advisor

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