Australia’s housing industry remains cautious about hiring in 2026 due to a range of economic factors such as mounting cost pressures and regulatory hurdles.
This caution is not due to housing demand, according to a survey of Housing Industry Association (HIA) members.
The survey of small to medium sized enterprises found 73 per cent do not expect to employ more staff this financial year with only 27 per cent planning to increase their workforce.
HIA managing director, Jocelyn Martin, said builders are ready to bring more people into the industry, including apprentices and skilled trades, but current conditions make it difficult to do so with confidence.
“This is about managing risk and capacity, not a lack of work or willingness to employ,” Martin said.
According to HIA 67 per cent of small business members report difficulties recruiting or retaining skilled staff and trades, while 56 per cent had to redirect staff time to manage regulatory and compliance requirements.
“These results contrast with more positive employment expectations in other sectors, highlighting the unique pressures facing residential construction,” Martin said.
“Training apprentices and developing skills takes time, stability and certainty. When businesses are dealing with delayed approvals, inconsistent regulation and rising costs such as insurance and workers compensation, it becomes much harder to invest in long-term workforce development.
“The administrative and compliance burden for hiring, managing and training apprentices is also disproportionally higher on small businesses, which don’t have a dedicated human resource manager.”
When asked about the current pressures facing their business, the availability and the cost of skilled labour ranked in the top five issues.
“HIA is calling for streamlined planning systems, reduced regulatory duplication, and stronger skills pathways to give builders the confidence to hire, train and retain more workers,” she said.
“Getting these settings right is essential if we are serious about increasing housing supply. With the right policy environment, the home building industry can strengthen its skilled workforce, grow employment and play a leading role in addressing Australia’s housing needs.”
Another industry concerned about training apprentices is the manufacturing sector.
In a report released in December and commissioned by Manufacturing Skills Australia (MSA), employers expressed concern about committing to apprenticeship training over the long term.
“Employers are frustrated that when their apprentice is becoming skilled in their third or fourth year, they get poached by another (often larger) employer offering higher wages or more opportunity. These employers are seen to be getting the benefit without investing the effort,” the report said.
It also found that conditions for apprentices do not reflect the needs of contemporary apprentices, who tend to be older often with adult responsibilities, and whose lower wages leave them struggling to service housing, car and basic family needs.
The report was commissioned to better understand how policy settings, funding arrangements, and delivery practices are shaping access to vocational training across the manufacturing sector.