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 over $360 billion in revenue, producing around 9% of Australia’s Gross Domestic Product, and has a projected annual growth rate of 2.4% in the next five years.
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.
Information sourced from the Construction, Plumbing and Services IRC's 2019 Skills Forecast.
All data sources are available at the end of the page.
IRCs now submit comprehensive Skills Forecasts to the AISC every 3 years, with abridged annual updates submitted in the intervening 2 years.
This industry page focuses mainly on the comprehensive version published in 2019.
Construction, Plumbing and Services Industry Reference Committee
Please note: any employment projections outlined below were calculated by the Australian Bureau of Statistics prior to COVID-19.
Employment in the Construction industry increased between 2000 and 2020, with a slight fall in 2012. In 2020, employment reached just under 1,180,000 and is projected to exceed 1,282,000 by 2024. The most common VET-related occupation in this industry is Carpenters and Joiners, at nearly 10% of the total workforce. Employment in this occupation is projected to grow by nearly 12% between 2020 and 2024. During the same period, employment for other VET-related occupations such as Architectural, Building and Surveying Technicians, and Building and Plumbing Labourers is also expected to grow by nearly 20% and 11% respectively.
Program enrolments in Construction-related qualifications have decreased steadily from 197,200 in 2015 to just under 163,430 in 2019. Program completions have fluctuated from a peak in 2015 of approximately 48,250, increasing in 2018 before declining in 2019 to about 39,240. Subject-only-enrolments data show a downward trend between 2015 and 2019 for subjects delivered as part of a nationally recognised program. The trend, however, fluctuates for subjects not delivered as part of a nationally recognised program. Between 2015 and 2017, the number of these subject enrolments increased, before declining in 2018 and 2019.
According to the Construction, Plumbing and Services IRC's 2019 Skills Forecast the top generic skills required for the Construction industry are:
The top five other employability skills requested by employers were life skills (including money and time management, organisation and planning), adaptability, a good work ethic (attitude, reliability, desire to work hard), work health and safety and resilience.
The Construction, Plumbing and Services IRC's 2019 Skills Forecast also listed skills shortages in the occupations of Building Associate (site supervisor), Construction Project Manager, Bricklayer and Stonemason, Carpenter and Joiner, Fibrous Plasterer, Plumber, Wall and Floor Tiler, Painting Trades Worker, and Roof Tiler.
According to the job vacancy data, the top requested skills by employers were communication and planning. The most advertised Construction occupations were Architectural, Building and Surveying Technician followed by Contract, Program and Project Administrator, and Civil Engineering Professionals. The top employers in this industry were Lend Lease Corporation Limited, CPB Contractors, John Holland, Laser Electrical and KBR Incorporated.
The above Skills Forecast underscores the importance for those in the Construction industry to maintain the skills to work within a changing regulatory landscape. There are several social, technological and policy changes that are driving rapid industry-wide change, all of which may have an impact on industry regulation. As the VET sector has an important role in the training and licencing of workers in this industry, it is vital that training remains current to meet regulatory requirements. As such, several projects have focused on reviews of Construction, Plumbing, and Services Training Package qualifications and Surveying and Spatial Information Services qualifications. Key drivers for change discussed in the Construction, Plumbing and Services IRC's 2019 Skills Forecast include:
‘A Trade of One’s Own’: Regional NSW Stakeholders findings: Barriers and Proposed Solutions for Women in the Manual Trades investigates areas that are fundamental to understanding how women, in regional New South Wales in particular, achieve sustainable careers in the manual trades. It explores why and how women are recruited and retained in such occupations, how they contribute to productivity in the workplace and how these factors promote longevity and career satisfaction. The research explores the role of individual resilience, socio-cultural factors and workplace cultures in supporting women’s personal and professional success in the manual trades. Ultimately, the research explores why some women prosper in jobs that are considered traditionally male-dominated, while others do not. In Victoria, the Government in partnership with the Building Industry Consultative Council, launched the Building Gender Equality: Victoria’s Women in Construction Strategy 2019-2022 to increase women’s participation in the trades and semi-skilled ‘blue collar’ work. Nationally, Master Builders Australia states that funding was allocated in the 2020-21 Federal Budget for the expansion of its Women Building Australia program to provide more support to more women to establish careers in building and construction.
The Annual Training Plan 2019-20 by Construction Skills Queensland (CSQ) also highlights industry discussion around changes to legislation, regulation, building codes, government procurement policies and industrial settings. In relation to skills, the report finds these changes are impacting small business capability and capacity due to a lack of understanding of regulatory and policy changes and what this means for their business, small local business capacity to participate and take up opportunities arising from local content requirements linked to public infrastructure investment, and Indigenous small business capacity and capability to participate. There are also financial skills deficits and the need to develop workers' and businesses' digital skills and capability.
The Digital Foundations report produced by StartupAUS in collaboration with Aconex, Lendlease, EY and the Victorian Government presents cases for the Construction industry using digital technologies including cloud-based management software, Internet of Things (IoT) sensors, Building Information Modelling (BIM), artificial intelligence (AI) and machine learning, virtual reality (VR), Unmanned Aerial Vehicles (UAVs) and digital marketplaces. To support the industry response to technological change, a skill set in BIM awareness has been developed for the CPC Construction, Plumbing and Services Training Package. Other training packages that cover occupations across the built environment can also import the skill set as a means of upskilling or continuous professional development.
The 2018-19 Industry Outlook by CSQ concludes a shift to offsite construction will have significant consequences as it implies a structural rebalancing away from construction toward manufacturing, and difficulty determining which points in supply chains qualify as ‘construction’. Requirements of building regulators and industrial instruments reflect the traditional industry structure of licensed trades working onsite. As companies begin to depart from this model, and individuals demand more scope to craft unique skilling and career pathways, regulators will need to adjust flexibly to meet the new ways of delivering construction outcomes.
The designation of construction as an essential service enabled activity to continue despite social distancing requirements implemented from late March 2020. However, the sector was impacted by the COVID-19 pandemic, according to Artibus Innovation’s Construction Training Support During COVID-19 Pandemic and estimates of the value of total construction work done published by the Australian Bureau of Statistics (ABS). The Australian Construction Industry Forum, in its submission to the Government made several recommendations regarding the construction industry’s recovery from COVID-19. These include:
Some of these recommendations have been supported, with federal (HomeBuilder) and state-based incentives implemented to support the construction sector and the expansion of the apprentice wage subsidy scheme. Early indications appear positive; Master Builders Australia states the implementation of the Federal Government’s HomeBuilder scheme has helped return some of the jobs lost as a result of COVID-19. However, it is important to note that the duration of the COVID-19 pandemic makes it difficult to determine the long-term impacts on the construction sector.
Below is a list of industry-relevant research, organisations and associations. Hyperlinks have been included where available.
‘A Trade of One’s Own’: Regional NSW Stakeholder Findings: Barriers and Proposed Solutions for Women in the Manual Trades – Donna Bridges, Branka Krivokapic-Skoko, Larissa Bamberry, Stacey Jenkins and Elizabeth Wulff
Annual Training Plan 2019-20 – Construction Skills Queensland (CSQ)
Budget Supports Women in Building and Construction – Master Builders Australia
Building Confidence: Improving the Effectiveness of Compliance and Enforcement Systems for the Building and Construction Industry across Australia – Department of Industry, Innovation and Science
Building Gender Equality: Victoria’s Women in Construction Strategy 2019-2022 – Victorian Government
Digital Foundations: How Technology is Transforming Australia's Construction Sector – StartupAUS
Farsight for Construction: Exploratory Scenarios for Queensland's Construction Industry to 2036 – CSQ and CSIRO
Industry Outlook 2018-19: Looking to the Horizon and Beyond – Construction Skills Queensland (CSQ)
Mental Health in the Construction Industry: Summary Report – Allison Milner and Phillip Law, University of Melbourne
Project: BIM Awareness – Artibus Innovation
COVID-19 impact
Construction’s Bridge to Recovery: Submission to Government Regarding Construction Industry Recovery from the COVID-19 Pandemic Situation – Australian Construction Industry Forum
Construction Training Support During COVID-19 Pandemic – Artibus Innovation
Construction Work Done, Australia, Preliminary – Australian Bureau of Statistics
HomeBuilder Driving Surge in Housing Approvals – Master Builders Australia
JobTrainer Skills Package for Economic Recovery and Growth – Prime Minister of Australia and Minister for Employment, Skills, Small and Family Business
ACT Training Fund Authority (TFA)
Air Conditioning and Mechanical Contractors’ Association of Australia (AMCA)
Association of Consultants in Access (ACA)
Australian Bricklaying and Blocklaying Training Foundation (ABBTF)
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 Painters Association (MPA)
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)
Australian Building Codes Board (ABCB)
Australian Manufacturing Workers’ Union (AMWU)
Australian Workers’ Union (AWU)
Department of Employment 2020, Employment Projections, available from the Labour Market Information Portal:
Australian Bureau of Statistics 2020, Employed persons by industry group of main job (ANZSIC), Sex, State and Territory, November 1984 onwards, 6291.0.55.003 – EQ06, viewed 1 August 2020, https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6291.0.55.003May%202020?OpenDocument
Australian Bureau of Statistics 2017, 2016 Census – Employment, Income and Unpaid Work, TableBuilder. Findings based on use of ABS TableBuilder data.
Training data has been extracted from the National VET Provider Collection, Total VET Students and Courses from the following training packages or qualifications:
This includes superseded qualifications and training packages.
Data covers a range of selected student and training characteristics in the following categories and years:
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:
Priority skills data have been extracted from the Construction, Plumbing and Services IRC's 2019 Skills Forecast.
Job vacancy data have been extracted from Burning Glass Technologies 2020, Labour Insight Real-time Labour Market Information Tool, Burning Glass Technologies, Boston, viewed July 2020, https://www.burning-glass.com.
Data shown represent most requested generic skills, occupations and employers according to internet job postings in Australia between July 2017 and June 2020 filtered by ANZSIC and ANZSCO classification levels listed below.
