Australia’s urban sprawl has naturally demanded a spike in infrastructure, housing and commercial buildings, which has subsequently resulted in an extensive growth period for the construction industry. While we’ve coped with the demand reasonably well, growth indications show no sign of slowing down. In fact, with the demand for housing, in particular, at an all-time high (and industry costs rising even higher due to import tariffs on build materials and wage increases to offset inflation), a new era of skilled frontline workers is definitely required to ensure our construction sector can keep up.
Filling this skill gap is a multifaceted task, with the government subsidising industry training, supporting apprenticeship opportunities, and contributing to promotional collateral for people to enter construction careers on our own shores. Below, we’ll break down exactly how Australia as a nation, including both government and construction firms, can attract skilled frontline workers.
Government Subsidised Training
Construction sector employers are copping a wide range of different expenses, ranging from import tariffs on construction materials, fuel and equipment costs for site work, and the rising costs of labour as a megalithic cherry on top. Thankfully, construction sector enterprises can claim back all essential operational expenses, including their PL (public liability) insurance on tax. This supports construction sector employers in retaining their wage budget, which in turn creates more apprenticeship opportunities for entry-level industry workers.
But even with industry tax structures designed to empower construction sector employers, there have historically still been time and cost investments in taking on apprentices. The government’s solution to this is looking to be Skills First (for Victoria) inclusions for TAFE and training courses that provide career pathways directly into Australia’s construction sector.
Through Skills First, apprentices can enjoy reduced student fees and even fee waivers for eligible students (i.e. Indigenous students, regional students, and students from the youth justice system to support reformation for young offenders). Other similar support initiatives to Skills First can also be seen across other Australian states, including NSW and QLD, all with a focus on promoting construction sector career pathways for Australia’s next generation.
On a national scale, the Federal Department of Employment and Workplace Relations’ Apprentice Connect Australia Providers work tirelessly to connect apprentice candidates with employers, facilitating a steady injection of trainees who are motivated to establish a lucrative lifelong career in Australia’s construction sector.
Improving Working Conditions through Standardisation
Maintaining OH&S and industry compliance requires a consistent investment from construction sector employers. As it currently stands, the sector’s safety standards are meticulous, especially compared to other international markets. This, paired with industry wage growth, helps prevent skilled sector workers from moving overseas. However, there’s still plenty of room for improvement if we want to further protect frontline industry workers and encourage young Australians to continue seeking sector pathways as lucrative career opportunities.
These potential improvements include frequent inspections of construction sites to ensure that regulations are being followed, an increased emphasis on training individual workers and more site-specific safety rules (i.e. for different kinds of construction projects). By making sure that all workers receive the benefits they deserve and can work safely, Australia can solidify its position as a premier destination for skilled labourers from all over the world.
Wage Growth for Skilled Frontline Workers
Last but certainly not least, construction sector employers must, in turn, respond to the cost of living crisis by ensuring that their skilled and upskilling staff are fairly remunerated. However, many experts are pointing out the low wages currently plaguing the Australian job market. And for Aussies to make the jump into construction and earn the right skills, an attractive pay package can be the factor that pulls more in.
There are several ways Australian construction firms can increase wages in the construction sector. One is simply to implement a higher minimum industry wage for Tier 1 construction workers. Currently, the minimum amount companies can pay their labourers is $24.10 per hour or $915.90 per week. However, this minimum wage is flexible: businesses can sometimes pay less when it comes to apprentices, juniors, or trainees. This is especially important in creating a skilled workforce for the future of the sector—investing in today’s apprentices will expand the skilled workforce and create enough supply for the projects that will build the country’s future.
Whilst apprentices can enjoy government subsidies to reduce or remove their student fees, allowing them to live more comfortably on their apprentice pay rates, there will be no incentive for apprentices to finish their vocational training if there’s no wage growth in their future. So sector employers – invest in your skilled staff, and they’ll be sure to stick around.
Revolutionising Australia’s Construction Sector for Future Growth
The construction industry is the backbone of Australia’s towns and cities. Overall, it’s also undeniable that the construction sector needs skilled workers – not suits. With growing emphasis on providing support for apprenticeships and for sector employers who are looking to do right by their staff, it’s clear to see that this vital Aussie sector has the resources it needs to pick itself back up.
Another possible step includes revitalising Australian-made construction materials. Not only will this aid in reducing the climate impact of property development in Australia by minimising global transportation emissions, but it’ll also save construction sector business owners from having to pay hefty trade tariffs on imported products.
We’ll just have to wait and see if these strategies take effect, as sector trajectory over the next few years will speak volumes about the future of civil and urban development in Australia.