In its Future of the Workforce report, it points out that the shortfall is on top of those required for natural attrition and requires federal and state governments to prioritise reforms that will attract and retain more workers.
Master Builders CEO Denita Wawn said that while it was a significant number, this presented an opportunity for growth in an industry that was pivotal to the nation’s economic success.
The report takes a closer look at the current state of the industry, the impact of chronic workforce shortages, and recommends sensible policy measures to relieve the pressure.
As the country’s second largest industry employer, one in 11 Australians work in building and construction, but the number of people joining the industry each year is not enough to keep up with demand.
“This is the very workforce needed to deliver the homes and supporting infrastructure we desperately need,” she said.
“Productivity has declined 18 per cent over the last decade putting significant pressures on workers and employers.
“Despite challenges, the industry is in a unique position to grow and innovate.
“There is a strong pipeline of work for the industry across the housing, commercial and civil sectors, presenting a great opportunity for people to join.
“There’s no quick fix to the critical workforce shortages, it will require a holistic approach across Federal Government portfolios from migration, skills and training through to industrial relations.
“Proposed solutions include increasing trade apprenticeships, leveraging skilled migration from similar regions, and fostering a diverse, inclusive culture to attract new talent from across the economy.”