The latest Housing Industry Association-Austral Bricks Trades Report highlights a continuing shortage of skilled labour.

The HIA-Austral Bricks Trades Report found that skilled labour in the residential building industry remained in short supply in the March 2011 quarter, despite a marked weakening in new home building activity and a flat renovations sector.

“In the eight year history of the Trades Report there has only been one quarter when the housing industry has avoided a shortage of skilled labour,” said HIA Chief Economist Harley Dale.“Clearly there is a structural shortage of skilled trades in the industry.”

“In times of weak housing conditions such as we are currently facing, apprentice commencements are threatened and there is a tendency for government investment and policy reform to stall or be wound back. However, now is precisely the time when accelerated investment in skills and training is most appropriate,” added Dale.

HIA Executive Director, Industry Workforce Development, Nick Proud, said that “ongoing shortages across occupations have contributed to a housing industry bereft of skills to construct sufficient dwellings to meet the requirements of Australia’s growing population.”

“With 2011 expected to be a considerably softer year for housing, we may see a repeat of 2009 when trade availability temporarily comes into mild oversupply and apprentice jobs are lost. Dampened employer confidence today would leave the housing industry hamstrung down the track when workforce ageing, resource sector factors, and recovering housing activity creates renewed demand for skills,” said Mr Proud.

“That’s why Budget 2011 needs to be the mechanism for increased investment in skills and training being made now to ensure not only that the industry can retain its existing skilled workforce, but that the labour pool is boosted in readiness for the future.”

“HIA calls on the Government to consider a range of policy options, including consolidating apprentice incentives that are primarily focused on helping employers to sign on apprentices and keep them on to completion. HIA believes there is a real need to bolster vital sign on employer incentives and then retain them through supporting mentoring and pastoral care delivered by industry,” added Mr Proud.

The HIA-Austral Bricks Trade Prices Index eased by 0.6 per cent in the March 2011 quarter to be up by only 0.9 per cent over the year. The HIA-Austral Bricks Trade Availability Index improved modestly in the March 2011 quarter, from -0.10 to -0.07. A negative reading indicates that trades are in short supply. Since mid-2002 when the survey results were first available, the June 2009 quarter remains the only period where the index had a positive sign, indicating a surplus of labour.