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Construction

Overview

This page provides high-level information and data on the Construction industry which comprises six main industry sectors:

Note: occupations involved in building maintenance/renovation are included in the relevant building sector.

The Construction industry is focused on the construction, demolition, renovation, maintenance or repair of building and infrastructure. It covers a wide range of services, from planning and surveying to structural construction to finishing services such as painting and decorating. The Construction industry generates $367.2 billion in revenue, producing around 9% of Australia’s Gross Domestic Product. It is projected to grow at an annual rate of 2.4% over the five years from 2019 to 2024.

Most businesses in this industry are either sole traders or very small, employing less than 20 people. They also tend to be Australian owned, with sales occurring in the domestic market. Construction materials are, however, increasingly imported from overseas.

This industry is heavily regulated in many sectors and occupations, with regulations at every level of government. The VET sector plays an important role in the licencing of many occupations in this sector, with regulators requiring completion of VET programs or subjects to grant licences.

The Construction industry differs from most others in that many states operate training levy schemes for Construction through industry training boards. The training levies are applied as a portion of the cost of a construction project, although there are variations between the states as to how the levy schemes operate. The money collected through the levy is available to cover training costs for workers in the industry. For more information on specific levy schemes, links to the relevant bodies are available under the links and resources heading.

Nationally recognised training for Building Structure Services is delivered under the CPC – Construction, Plumbing and Services Training Package.

All data sources are available at the end of the page.

Industry cluster snapshot

Employment and training snapshot

Overall, employment levels in the Construction industry increased from 702,700 in 2002 to 1,185,100 in 2022 and is projected to grow to 2025 to 1,263,900.

Of the VET-related occupations across the Construction industry workforce, Carpenter and Joiners comprised the largest proportion, with one in ten of workers (10%). Construction Managers and Electricians both comprised 8% each of the overall industry workforce.

Employment projections to 2026 indicate solid growth in Architectural, Building and Surveying Technicians, up 12%, followed by Construction Managers and Electricians, which are both projected to increase 10%, and Plumbers, which is projected to grow 9%.

Overall, program enrolments in Construction-related qualifications have decreased steadily from approximately 187,670 in 2017 to 179,180 in 2021. In this time, enrolments decreased to about 157,930 in 2020 before rising 13% in 2021.

Overall, program completions increased between 2017 and 2021 from more than 37,270 to about 45,650, although there were some fluctuations.

Subject-only enrolment data show an upward trend from more than 1,611,900 in 2017 to 1,780,040 in 2021 for subjects delivered as part of a nationally recognised program. Conversely, the number of subjects not delivered as part of a nationally recognised program decreased between 2017 and 2021, from 313,790 in 2017 to approximately 276,570 in 2021.

Industry insights on skills needs

According to the Construction, Plumbing and Services IRC's 2019 Skills Forecast the top generic skills required for the Construction industry are:

  • Language, Literacy and Numeracy (LLN)
  • Learning agility/Information literacy/Intellectual autonomy and self-management
  • Design mindset/Thinking critically/System thinking/Solving problems
  • Communication/Virtual collaboration/Social intelligence
  • Technology.

The National Skills Commission’s Skills Priority List (2022) identifies the following as experiencing skill shortages Construction Project Manager, Bricklayer and Stonemason, Carpenter and Joiner, Fibrous Plasterer, Plumber (General), Wall and Floor Tiler, Painting Trades Worker, and Roof Tiler. Further, national future demand for these occupations was rated as soft to moderate, according to the Skills Priority List.

According to the job vacancy data, the top requested skills by employers were communication skills, planning and being detail-orientated. The most advertised Construction occupations were Architectural, Building and Surveying Technicians, followed by Electricians, and Contract, Program and Project Administrators. The top employers in this industry were Ventia, CPB Contractors, and John Holland.

The Construction, Plumbing and Services IRC’s 2020 Skills Forecast was the final skills forecast published by the IRC. It identified industry workforce practices, skills development, and trends, which emerged between the publication of 2019 Skills Forecast and the 2020 update. It reported that new developments in existing and emerging specialisations within the sector required tailored training solutions. Further, modern methods of construction were increasing reliance on new technologies changing skill needs as construction becomes more digitised. Increased industry recognition of workplace hazards also required training and skills development.

According to the 2020 Skills Forecast, the major new workforce skills and trends that emerged between the submission of the 2019 and 2020 Skills Forecasts were:

  • Demand for occupational skills due to the shift to hydrogen in the gas supply
  • Greater awareness of construction workplace hazards, in particular asbestos safety awareness, silicosis safety awareness and mental health safety awareness
  • Demand for heritage skills
  • Demand for prefabricated concrete construction installation skills.

Additionally, the Construction, Plumbing and Services IRC reported it received direct requests for training products to address industry skills needs in:

  • Rope work
  • Water Efficiency Labelling and Standards (WELS) scheme
  • Cured in Place Pipe – unit of competency
  • Steel Construction – unit of competency
  • Swimming Pool and Spa Building Certificate III.

The 2020 Skills Forecast also reported these trends were emerging within an existing environment of continuing and intensifying regulation and environment changes. The latter, through climate change and events were stimulating geographic demand for skills and occupations in the construction industry. These concerns were also having an impact on insurance requirements, which resulted in strengthened regulation in response to building failures.

Another regulatory requirement for construction workers was obtaining a White Card to work or access construction sites. The CPCCWHS1001 Prepare to Work Safely in the Construction Industry project explored possible amendments to the assessment requirements of the unit of competency to address industry concerns around assessment quality, online identity fraud and appropriate language and literacy. The Case for Endorsement was approved in late 2021 and the project completed in 2022.

The use of technology presents opportunities and challenges for the Construction industry, particularly around skill needs. The use of artificial intelligence in the construction industry, in particular how it can optimise and improve process-drive operations across each phase of the construction project lifecycle was explored in AI: construction’s new frontier of digital enablement. The use of digital twin technology, that is a ‘virtual representation of real-world entities and processes, synchronised a specified frequency and fidelity’ was explored in Digital Twin: the Age of Aquarius in Construction and Real Estate. The report provided an insight into how digital twin enables a physical building to adapt to human needs, instead of humans conforming to the building’s limitations. According to the authors, it provided data that can deliver actionable insights geared towards efficiency while reducing wasted resources.

Separately, mental health in the construction industry was the focus of The Impact of Workplace Bullying on Mental Health and Suicidality in Queensland Construction Industry Apprentices and was an issue discussed in the NT Industries: Construction and the CSQ Training Plan for 2021-2022.

Links and resources

Below is a list of industry-relevant research, organisations and associations. Hyperlinks have been included where available.

IRC and Skills Forecast

Construction, Plumbing and Services Industry Reference Committee

Relevant research

AI: Construction’s New Frontier of Digital Enablement - Mark Gibson, Eric Ottinger, Giselle Chanona-Pierre, Todd Lukesh, Erica Crandon and Erin Patrick Roberts

CPCCWHS1001 Prepare to Work Safely in the Construction Industry - Artibus Innovation

CSQ Training Plan 2021-2022: Building a skilled and resilient workforce in construction - Construction Skills Queendland

Digital Twin: the Age of Aquarius in Construction and Real Estate - Todd Lukesh, Eric Ottinger, Nipun Bajaj, Jordan Stein, Erica Crandon, Mark Gibson and Akanksha Jain

NT Industries: Construction - Industry Skills Advisory Council NT

Skills Priority List 2022 – National Skills Commission

The Impact of Workplace Bullying on Mental Health and Suicidality in Queensland Construction Industry Apprentices - Dr Victoria Ross, Rachmania Wardhani and Dr Kairi Kõlves

Industry associations and advisory bodies

ACT Training Fund Authority (TFA)

Air Conditioning and Mechanical Contractors’ Association of Australia (AMCA)

Association of Consultants in Access (ACA)

Brick and Block Careers (formerly Australian Bricklaying and Blocklaying Training Foundation)

Australian Constructors Association (ACA)

Australian Industry Group (Ai Group)

Australian Institute of Building (AIB)

Australian Institute of Building Surveyors (AIBS)

Australian Institute of Waterproofing (AIW)

Australian Sign and Graphics Association (ASGA)

Building Designers Association of Australia (BDAA)

Construction Skills Queensland (CSQ)

Crane Industry Council of Australia (CICA)

Elevating Work Platform Association of Australia (EWPA)

Housing Industry Association (HIA)

Industry Skills Advisory Council Northern Territory (ISACNT)

Insulation Council of Australia and New Zealand (ICANZ)

Keystone Tasmania (formerly the Tasmanian Building and Construction Industry Training Board (TBCITB))

Master Builders Australia

Master Painters Association (MPA)

Master Plumbers Association

Metal Roofing and Cladding Association of Australia (MRCAA)

National Fire Industry Association (NFIA)

South Australian Construction Industry Training Board (CITB)

Swimming Pool and Spa Association of Australia (SPASA)

Western Australian Construction Training Fund (CTF)

Regulatory bodies

Australian Building Codes Board (ABCB)

Employee associations

Australian Manufacturing Workers’ Union (AMWU)

Australian Workers’ Union (AWU)

Communication Workers Union (CWU)

Construction, Forestry, Maritime, Mining and Energy Union (CFMEU)

Data sources and notes

Department of Employment 2021, Industry Employment Projections viewed 1 August 2021, Labour Market Information Portal

  • by ANZSIC 1-digit Division E Construction Industry, employment projections to May 2025

National Skills Commission 2022, Occupation Employment Projections viewed 10 August 2022, https://www.nationalskillscommission.gov.au/topics/employment-projections

  • by ANZSCO, selected occupations, employment projections to May 2026
    • 3121 Architectural, Building and Surveying Technicians
    • 8211 Building and Plumbing Labourers
    • 3312 Carpenters and Joiners
    • 1331 Construction Managers
    • 3411 Electricians
    • 3322 Painting Trades Workers
    • 3341 Plumbers.

Australian Bureau of Statistics 2022, 6291.0.55.001 - EQ06 - Employed persons by Industry group of main job (ANZSIC), Sex, State and Territory, November 1984 onwards, viewed 1 August 2022. https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia-detailed/may-2022

  • Employed total by ANZSIC 1-digit Division E Construction Industry, 2002 to 2022, May quarter.

Australian Bureau of Statistics 2017, 2016 Census – Employment, Income and Unpaid Work, TableBuilder. Findings based on use of ABS TableBuilder data.

  • Employment level by 1 digit Division E Construction Industry, and 4 digit level occupations to identify the relevant VET-related occupations in the industry as a proportion of the total workforce.

Training data has been extracted from the National VET Provider Collection, Total VET Students and Courses from the following training packages or qualifications:

  • CPC Construction, Plumbing and Services
  • BCF Off-Site Construction
  • BCG General Construction
  • BCP Plumbing and Services.

This includes superseded qualifications and training packages.

Data covers a range of selected student and training characteristics in the following categories and years:

  • 2017 to 2021 program enrolments
  • 2017 to 2021 program completions
  • 2017 to 2021 subject enrolments.

Total VET students and courses data is reported for the calendar year. Program enrolments are the qualifications, courses and skill-sets in which students are enrolled in a given period. For students enrolled in multiple programs, all programs are counted. Program completion indicates that a student has completed a structured and integrated program of education or training. Location data uses student residence. Subject enrolment is the registration of a student at a training delivery location for the purpose of undertaking a module, unit of competency or subject. For more information on the terms and definitions, please refer to the Total VET students and courses: terms and definitions document.

Low counts (less than five) are not reported to protect client confidentiality.

Percentages are rounded to one decimal place. This can lead to situations where the total sum of proportions in a chart may not add up to exactly 100%.

CPC Construction, Plumbing and Services, BCF Off-Site Construction, BCG General Construction and BCP Plumbing and Services Training Packages apprentice and trainee data has been extracted from the National Apprentice and Trainee Collection, including:

  • 2012 to 2021 commencements
  • 2012 to 2021 completions
  • apprentices and trainees in-training October to December 2021 collection, by qualification and state and territory of data submitter.

Job vacancy data have been extracted from Lightcast 2022, Labor Insight Real-time Labor Market Information Tool, Boston, viewed August 2022, https://lightcast.io/apac.

Data shown represent most requested generic skills, occupations and employers according to internet job postings in Australia between July 2019 and June 2022 filtered by ANZSIC and ANZSCO classification levels listed below.

  • Generic skills/Occupations
    • ANZSCO major groups excluding Sales Workers
    • Construction.
  • Employers
    • 3121 Architectural, Building and Surveying Technicians
    • 5111 Contract, Program and Project Administrators
    • 2332 Civil Engineering Professionals
    • 3411 Electricians
    • 3341 Plumbers
    • Construction.
Updated: 29 Nov 2022
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