Construction workforce shortfall to intensify

Australia’s construction sector is facing a rapidly widening workforce shortfall, with demand for skilled workers on major projects forecast to exceed supply by up to 300,000 by mid-2027.

According to Infrastructure Australia, a record $242 billion in major projects is planned over the next five years, driven by energy, housing and transport investment. While the current workforce gap has eased to around 141,000, it is expected to expand sharply as the project pipeline peaks, requiring the major projects workforce to grow from just over 200,000 to almost 500,000.

Transport infrastructure continues to account for more than half of planned investment, while utilities – particularly energy transmission – have seen the fastest growth. Much of this activity will occur in regional areas, where worker shortages are most acute.

The report highlights shortages across professional and trade roles, including engineers, project managers and skilled labour, alongside a growing skills gap for energy construction. While government initiatives are helping, Infrastructure Australia says improved coordination, faster approvals and productivity gains will be critical.

The agency also points to the need for innovation-led procurement and efficiency improvements to help deliver this once-in-a-generation pipeline sustainably.