Construction Industry
Workforce Development Plan
2014
Construction Training Council
July 2014
Construction Training Council
www.bcitf.org
The Construction Training Council acknowledges and appreciates the contributions made to the development of the Industry
July
2014
Workforce
Development Plan by the Building and Construction Industry Training Board, members of the Construction Industry
Strategic Group, Construction Industry Working Group and key stakeholders within the Construction Industry.
Workforce Development Plan 2014 – Construction Industry
July 2014
Construction Training Council
www.bcitf.org
The Construction Training Council acknowledges and appreciates the contributions made to the development of the Industry
Workforce Development Plan by the Building and Construction Industry Training Board, members of the Construction Industry
Strategic Group, Construction Industry Working Group and key stakeholders within the Construction Industry.
Workforce Development Plan 2014 – Construction Industry
Foreword
On behalf of the Building and Construction Industry Training Board, I have pleasure in presenting the
updated Construction Industry Workforce Development Plan for 2013-14.
This plan provides an overview of the major sectors and occupations of the Building and Construction
Industry in Western Australia. The plan was developed using a wide range of research processes,
Industry stakeholder input and respected sources of information.
The Building and Construction Industry Training Board, in its role as a supporter of apprenticeships
and skills development in the Western Australian Construction Industry and as a Training Council,
provides this plan to identify the current environment and challenges facing the Industry. Strategies
have been developed in consultation with Industry and its stakeholders to respond to the issues
identified.
This Industry has a current workforce of 137,510 which represents approximately 10.6% (Annualised)
of the State workforce.
With 40% of all Western Australia’s apprentices and over 19% of combined apprentices and trainees,
the Construction Industry workforce has grown by over 73% in the past 12 years and over 10% in the
last 7 years.
The Construction Industry is a major supporter of the apprenticeship system and through its training
levy and subsidies has seen more than a 351% growth in apprentices in training from 1992 to 2014.
The strategies contained within the plan reflect the broad views of Industry stakeholders and are
aimed at addressing workforce issues to support a sustainable Construction workforce.
Through 2014-15, the Board will continue to maintain communication networks with industry
organisations, employers, Department of Training and Workforce Development, State Government
agencies and registered training providers to facilitate support for workforce development.
Finally, I would like to thank all stakeholders for their support and input into this Industry Workforce
Development Plan. We look forward to working with you in the coming year.
_____________________
Mr Ian Hill
Chairman
BCIT Board
Workforce Development Plan 2014 – Construction Industry
Table of Contents
1.
2.
3.
Executive Summary .............................................................................................................................. 1
Key Recommendations ......................................................................................................................... 3
Environmental Scan.............................................................................................................................. 5
3.1
3.2.
Methodology................................................................................................................................. 5
Industry Profile.............................................................................................................................. 6
3.2.1
3.3
3.4
3.5
3.6
Civil Construction.................................................................................................................. 7
Industry Trends ............................................................................................................................. 8
Growth Trend of the Industry – 12 Year Period............................................................................ 9
Labour and Skill Demand ............................................................................................................ 10
Forecasting .................................................................................................................................. 11
3.6.1
3.6.2
3.6.3
3.6.4
3.6.5
Housing Industry Association ............................................................................................. 11
Master Builders Association ............................................................................................... 11
BIS Shrapnel ........................................................................................................................ 11
Summary of Forecasting ..................................................................................................... 12
Civil Construction - Occupations ........................................................................................ 12
3.7 Construction Workforce Structure .................................................................................................. 13
3.8. Industry Sectors - Sector Characteristics ........................................................................................ 14
3.8.1. Civil Construction ..................................................................................................................... 14
3.9. Regional Impact ............................................................................................................................... 14
3.9.1 Civil Construction - Regional ..................................................................................................... 16
3.10. Level of Education in the Workforce ........................................................................................... 16
4.
5.
Quality and Relevance of Secondary Education ................................................................................. 17
Gender/Age Participation................................................................................................................... 19
5.1. Impact of Age and Chronic Conditions on Longevity (age/time) in the Industry. ........................... 19
5.2. Number of Workers and Age Distribution by Trade/Occupation .................................................. 21
5.3. Civil Construction - Demographics .................................................................................................. 21
6.
Apprenticeships and Traineeships within the Construction Industry ................................................ 22
6.1
6.2
6.3
6.4
6.5
6.6
7.
Employment and Training Issues........................................................................................................ 30
7.1
7.3
7.4
8.
Apprentice In Training…… ........................................................................................................... 23
Apprentice Commencements .................................................................................................... 24
Training Rates ............................................................................................................................. 25
Under-Represented Groups Participation ................................................................................. 28
Traineeships in the Industry ....................................................................................................... 29
Civil Construction ........................................................................................................................ 30
Employment Issues .................................................................................................................... 30
New and Emerging Skills ............................................................................................................ 31
Workforce Development Opportunities .................................................................................... 32
Industry Specific Issues and Key Strategies ........................................................................................ 34
8.1
8.2
8.3
8.4
8.5
Apprenticeships .......................................................................................................................... 34
VET in Schools ............................................................................................................................. 34
Indigenous and Disadvantaged Youth in Unemployment .......................................................... 34
Resources Industry ..................................................................................................................... 35
Migration.................................................................................................................................... 35
Workforce Development Plan 2014 – Construction Industry
Charts
Chart 1
Construction Work Done in $000s
8
Chart 2
State Final Demand in $M’s
8
Chart 3
Employed in WA Construction Industry (000s)
9
Chart 4
Employed in Construction as a Percentage of ALL WA Industry
9
Chart 5
Western Australian Forecasts
10
Chart 6
Distribution of Occupations compared to all other Western Australian
Industries
13
Chart 7
Level of Education by Sector (ANZSIC93)
17
Chart 8
Age Distribution within the Construction Workforce – ALL TRADES
19
Chart 9
Age Distribution across a number of Construction trades
20
Chart 10
Civil Construction Workforce Age Profile
22
Chart 11
Construction Apprentices ‘In Training’ (including Electricians)
23
Chart 12
Construction Apprentices ‘Commencements’
(Year to end March 2014)
24
Chart 13
Commencements by Comparison to Previous 12 months
24
Chart 14
Training Rate – Current (Ratio of Apprentices to Tradespeople)
25
Chart 15
Apprentices ‘In Training’ by Major Industries
26
Chart 16
Growth in Apprentices ‘In Training’ over the last 8 years
26
Chart 17
Regional Apprentices Training Provision
27
Table 1
National Employment Growth
10
Table 2
Western Australian Short and Long-Term Forecasts
10
Table 3
Dwelling Commencements (Forecast)
11
Table 4
Distribution of Occupations compared to all other WA Industries
13
Table 5
ASCO Codes
14
Table 6
Overall Level of Education in Construction Workforce
16
Table 7
Training Rates
25
Table 8
Apprentices ‘In Training’ – Regional (Non-Metropolitan)
27
Table 9
Trainees ‘In Training’
29
Tables
Unless otherwise stated, all apprenticeship and overall training data was current as at end of March 2014. All interpretations
and conclusions drawn from this data are those of the Construction Training Council.
1. Executive Summary
This Workforce Development Plan is, by its nature and content, a comprehensive document with
detailed information on the Construction Industry, its workforce and employment and training issues.
The Executive Summary sets out the critical issues which industry stakeholders wish to see
addressed.
The profile of the Construction Industry demonstrates that it is a significant contributor to the State’s
economy and productivity. The Industry achieves the following key results:

Contributes 11.7% to the Gross State Product

Employs 10.58% of the State workforce (Annualised)

Employs 40% of Western Australia’s apprentices

Employs 19% of all combined apprentices/trainees

Employs 81% of the Construction workforce in the metropolitan area

Females represent 13% of the Industry’s workforce

Employs over 87% of the Industry’s workforce in full-time employment

Constructs built environments and infrastructure critical to the State’s economy, industry and the
community
Identifying the Issues
During 2013-2014, the industry has experienced significant growth in the Housing sector with the
1
number of housing approvals in April 2014 reaching their highest annualised average since 2004 .
The consensus of opinion appears to be the market moving to a stable period for the next 12 months
followed by a decline in activity. Therefore, it is important to plan for the future and identify the impact
of any planned major projects in both the Resources sector and traditional Construction sectors.
Although the Housing sector is at its highest level of activity on record, new home buildings are
2
expected to ease by 6.8% during 2014-15. This easing is the expected result from market dynamics
shifting as the construction phase of the mining boom tapers and population growth slows. There is a
however, perceived demand for between 4,000 - 6,000 tradespeople to replace those that have exited
during the recent downturn.
Both BIS Schrapnel (BIS) and the Housing Industry Association (HIA) are forecasting a downward
trend in dwelling commencements. The Industry historically experiences peaks and troughs in activity
and this is predicted to continue in the future with a further decline in new home commencements of
3.9% in 2015-16.
There were 26,206 dwellings commenced in the 12 months to December 2013, a 29.7% increase on
the previous year and the highest since December 2006.
Recent economic analysts have reported on the abandonment of a number of major resource projects
and this, coupled with the imminent completion of several major Engineering Construction projects,
has seen forecasts change to reflect slower economic growth, population growth and as a result
household consumption.
Even though the number of housing commencements is predicted to decrease over the next two
years, the overall level of activity will remain relatively high and require skilled labour which is, in a
number of occupations, in short supply.
Whilst employment for the Construction Industry in the State as a whole is positive and is trending
upwards, there are pockets of downturn in specific regions particularly in the Kimberley and Pilbara.
1
2
ABS 8731
HIA Media Release – Residential Construction – A Key Driver of Growth, 16 June 2014
Page 1
Workforce Development Plan 2014 – Construction Industry
The Pilbara is affected by the significant slow down in infrastructure construction for the resources
sector and this has had a flow on affect for the housing and commercial sectors in that region.
This report identifies approximately 30 occupations which are projected to be in shortage in the mid to
long-term. As economic analysts’ opinions vary widely on this subject; no attempt has been made to
quantify anticipated long-term labour shortages.
During 2006 to 2011, there was an effort to address skill shortages by reducing apprenticeship training
times. Although commencements increased, there was very limited interest in the shorter timeframe
for apprenticeships. However, the industry has retained the ability to utilise shorter timeframe
apprenticeships by having a ‘variable term’ for most trades of between 3 and 4 years.
With the retention of students to the end of Year 12, and the introduction of competency based wage
progression in 2014 there could again be renewed interest in reducing the apprenticeship term. This
would rely heavily on the uptake of VET in Schools programs and pre-apprenticeships.
It is expected that as engineering construction projects in the Mining/Resources sector are completed,
a large proportion of these skilled workers will no longer be required. However, the poaching of skilled
labour is expected to continue to service the Resources industry’s growing operational needs.
One of the key recommendations made in previous workforce development plan reports is to require
the Resources industry to pay the Building and Construction Industry Training Levy on Engineering
Construction works. This recommendation remains a key priority and was also identified in a recent
3
review into the operation and effectiveness of the Building and Construction Industry Training Fund .
With a range of issues causing concerns in the Industry, it is suggested that future workforce planning
be subjected to a process of continual monitoring and adjustment based on short-term projections due
to the current volatile nature of the economy.
3
Review of the Operation and Effectiveness of the Building and Construction Industry Training Fund and Levy Collection Act 1990 – Stratton, R. June 2014
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Workforce Development Plan 2014 – Construction Industry
2. Key Recommendations
Recommendation 1
Levy on the Resources Sector (Engineering Construction).
The Construction Industry, through payment of the training levy, is paying for the training of
apprentices and employees who are then attracted to the Resources sector on completion of their
training. Therefore, the Resources sector should contribute for engineering construction projects to
the Training Fund and the cost of apprentice/employee skills training.
Strategy





Address future demand for additional labour on major resource projects and recognise the costs
incurred by the Construction Industry in training large proportions of this demand.
Implement an approval process for construction of Resource sector infrastructure projects to
include requirements for targeted employment rates of apprentices and trainees which are at least
the equivalent of the Construction Industry.
Raise the issue of payment of the training levy by the Resources Industry with the State
Government.
Encourage the Resources sector to train more apprentices and trainees, especially in trade areas
that overlap sectors and at the same training rate as the Construction Industry.
Provide skills gap training for mature-age workers returning from the Resources sector to
encourage them to seek employment in the Construction Industry.
Recommendation 2
The Low Commencement Rate of Apprentices in the Construction Industry
The Industry has identified that the impact of new Award rates for apprentices, Competency Based
Wage Progression (CBWP), retention of students to Year 12 and lack of work in the traditional sectors
of the Industry are causing a reluctance to employ apprentices. Continuity of work, cost of
employment, the imposition of Commonwealth Income Tax on subsidies and the loss of trained
workers to the Resources sector all contribute to a downturn in commitment by employers to train
apprentices.
Strategy






Address the issue of competency based wage progression to recognise that VET in School and
pre-apprenticeship competencies need to be demonstrated to the satisfaction of the employer
during employment.
Support and promote programs such as Apprentice Kick-start initiatives.
Raise the issue of Commonwealth Government income tax on subsidies that are paid to
employers of apprentices.
Provide incentives to both first and subsequent homebuyers to further stimulate the Housing
sector.
Provide higher incentives for trades that are at risk with very low commencement rates.
Introduce a ‘one-stop shop’ to reduce bureaucracy and administration for potential employers and
streamline the process of engaging apprentices.
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Workforce Development Plan 2014 – Construction Industry
Recommendation 3
VET in Schools (VETiS)
There needs to be increased promotion in schools for industry support VETiS training programs. In
addition, there needs to be recognition by all industry stakeholders that VETiS is the replacement for
the decline in pre-apprenticeship numbers.
There needs to be a change in the education philosophy that advises students to strive for and follow
academic pathways (university).
Strategies
 Finalise development of teaching and student resources to support the new Certificate II trade
pathway program.
 Develop, market and promote new resources to schools and RTPs who have students considering
a career in construction.
 Provide adequate ‘delivery’ funding to schools and RTPs to ensure the new VETiS programs in
Construction are implemented in schools and delivered by a RTP to meet demand.
 Resolve and clarify roles and responsibilities for funding between the DTWD and DET.
 Implement the Try-A-Trade component for Year 9 students unsure of their career choice.
 Ensure teachers of Construction trades have Industry-related experience and training to the same
standard as lecturers within RTPs or utilise RTPs to deliver the training in Schools.
 Mandate that only ’Industry approved’ courses are used for VETiS to avoid students completing
competencies that do not enhance employment opportunities.
Recommendation 4
Assessment Processes and Quality Issues
There is concern over the validity of current assessment processes, quality of competencies achieved
by apprentices completing their indenture and RPL for existing and migrant workers.
Strategies







Make qualification assessment processes more stringent.
Implement a final independent assessment of apprentices prior to award of the trade certificate.
For RPL of existing and migrant workers, implement independent assessment against the trade
certificate, rather than the AQF qualification.
Review the opportunity for a reduction in time required for off the job training whilst maintaining the
quality requirements of the system.
Ensure RTPs consult and communicate regularly with Industry to ensure that they are delivering
the programs that industry requires in a consistent manner across all training providers.
Address inconsistencies between RTP assessments or follow Industry recommendations for
independent assessment.
Raise the issue of competency based wage progression with Industry to develop an assessment
process that will satisfy changes to the pay structure for apprentices under the Fairwork Australia
model.
Recommendation 5
Training for Regional Apprentices
There is still concern from regional employers about the need for apprentices to travel to Perth for offthe-job technical training.
Strategy
st
Mandate a requirement for 1 Year apprentices to be trained in the region in which they work and live.
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Workforce Development Plan 2014 – Construction Industry
3. Environmental Scan
3.1 Methodology
This update of the 2013-14 Workforce Development Plan was conducted during April to June 2014.
The Plan provides evidence of the current state of the Industry. An environmental scan of Industry
was also included to examine the projected skilled and non-skilled labour needs of the Industry in the
short to medium-term. The Plan provides advice on future training needs to ensure the Construction
Industry has access to a skilled workforce.
The environmental scan was compiled using a range of methodologies including:





face-to-face consultation with key Industry stakeholders;
strategic industry forum in conjunction with the Construction Training Fund;
construction Industry Strategic and Working Group meetings; and
Individual consultation with stakeholders during site visits across industry sectors and
occupations.
data utilised from the Construction Industry Snapshot published by the Construction Training
Fund/Council.
The Construction Training Council consulted its Strategic and Industry Working Group membership
plus gathered information during 2013-14 from stakeholders on the Training Council’s database.
Additionally, a number of significant national research reports and surveys were examined to also
provide valuable Industry information.
Stakeholders involved in the development of this Plan included;

















ABN Group
Building Commission
Department of Housing
Contract Carpenter’s Association
Housing Industry Association (HIA);
Master Builders Association (MBA);
Master Plumbers, Gasfitters and Painters Associations (MPA);
Civil Contractors Federation (CCF);
CFMEU, AMWU, CEPU;
Major Builders/Contractors;
Association of Wall and Ceiling Industries of WA;
Air Conditioning and Mechanical Contractors Association;
Tiling Association;
Skills DMC;
Australian Brick and Blocklaying Training Foundation (ABBTF);
Group Training Organisations; and
Enterprise/Registered Training Providers.
During consultations with stakeholders there were a number of common issues raised and these form
the basis of the key and specific recommendations within this report. Over 340 issues were identified
and compiled into common areas including:












Apprenticeships and Traineeships;
Apprenticeship Award Rates (including Competency Based Wage Progression)
Attrition Rate for Apprenticeships
Indigenous and Disadvantaged Youth in Unemployment;
Migration;
Taxation and Incentives;
Sub-Contractor and Contract Arrangements;
Marketing of the Industry;
VETiS;
Mature-aged Workers and the Skills Shortage;
Resources Sector Issues;
Pre-Apprenticeships in Economic Downturn;
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Workforce Development Plan 2014 – Construction Industry




Current and Future Economic Issues;
Registered Training Providers;
New Technology, Building Methods and Equipment; and
Trade Shortages.
Economic and workforce data provided by the Australian Bureau of Statistics, Australian Construction
Industry Forum, Construction Forecasting Council, Housing Industry Forecasting Group, BIS, HIA,
MBA and the Chamber of Commerce and Industry was monitored for the last five years and is widely
referred to in this report. In addition, the Training Council has for the last five years, provided all key
stakeholders with quarterly or bi monthly reports on the state of the Construction Industry. Therefore,
feedback from stakeholders contributing to this report has been from an informed perspective.
3.2. Industry Profile
Overview of the Construction Industry
The Construction Industry is a key driver of economic prosperity in WA, contributing approximately
11.7% of the Gross State Product and is critical to the physical, social and economic well-being of the
State’s people through the construction of health, education and transport infrastructure, housing and
commercial buildings.
4
5
6

From a Gross Value Added perspective, the Industry has increased by approximately $14.7
billion or 88% over the five years to June 2013.

The Construction Industry is one of the largest employers in the State with annual average
employment of 141,450 people or 10.57% of the State’s workforce.

The Industry is diverse with three distinct sectors; housing, commercial and civil engineering
operations. A significant number of electrical mechanics and support staff form part of the
installation trade services sector of the Industry.

There are over 100 different occupations in the Industry. These include management,
professional, para-professional, administrative, trades, technical and semi-skilled workers.
The largest number of workers, approximately 63,100 or 49%, are trades people and
5
technicians . Within this figure there are 43,875 construction industry tradespeople,
excluding electricians (19,225).

Most employees are initially recruited through the apprenticeship system and move into paraprofessional and other occupations as part of career progression. A significant proportion of
workers are self-employed contractors operating as small businesses under a sub-contract
arrangement. The Industry has grown dramatically in recent years in parallel to the growth in
activity in the Resources Industry.

In the last five years the Industry’s workforce has increased by approximately 16,370 or
6
13.1% compared to a 13.3% increase in the State workforce. Approximately 81% of the
workforce is located in the metropolitan area, 13% of the workforce is female and 87% of the
workforce is in full-time employment.

The Construction Industry experienced severe skill shortages during the recent resources
boom. However, it still maintained work output by managing the shortfall through extended
project time-lines and an increase in the average number of hours worked by employees.

The Construction Industry relies heavily on recruitment of apprentices and compared to other
industries has been a strong trainer. The Construction Industry employs 40% of all Western
Australia’s apprentices (including electricians) and approximately 19% of combined
apprentices and trainees.

In recent years the Industry has achieved a training rate (number of apprentices as a
percentage of tradespeople) of approximately 13%. The training rate peaked at just under
4
ABS 5220 - Australian National Accounts: State Accounts WA, Industry Gross Value Added, Current Prices, July 2013
ABS ST E08
ABS 6291
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Workforce Development Plan 2014 – Construction Industry
16% during 2007 and even at a reduced level compares most favourably with the average of
8.2% across all other industries.

Females make up 13% of the Industry’s workforce and are predominantly employed in
administrative roles in building companies.

Whilst a strong trainer of apprentices, the Industry has struggled to maintain its skilled
workforce needs through the recruitment of school leavers. However, this school-based
cohort is now the target of programs in schools to encourage students to consider a trade
qualification and construction as a career path. There is also concern that the ‘half cohort’ in
schools will impact on any recruitment drive when the economic situation improves.

One of the biggest problems confronting the Industry during the recent resources growth
period was attrition of workers who moved to higher paid employment in the Resources
sector. There are concerns the same situation will re-occur if the resources sector goes
through another growth cycle.

Various Industry organisations and economic analysts have made estimates of the number of
extra workers needed to sustain the Industry’s future workforce needs. However, these
estimates vary substantially and reflect the volatility of the Industry and the economy
generally.

A number of Industry and economic analysts are predicting a need for tens of thousands of
additional Construction Industry workers in the next few years, including the Australian
Construction Industry Forum, who 12 months ago were predicting no significant increase in
the Construction Industry workforce for 2013-14 to 2014-15. In the past 20 years the number
of capital works projects actually initiated represents approximately 30% of those projected
and promoted in the media.

There is a need to develop strategies to improve the long-term performance of the State’s
labour market whilst enabling short-term solutions that support the inevitable fluctuations that
occur in the economy as a result of building activity and demand for labour.

There has been a recent upturn in the Construction sector coupled with a 23.9% increase in
apprentice commencements. In the last 3 months up to May 2014, the Resources sector has
seen a significant decline in workers (15,190) whilst the Construction sector, in the same
timeframe as seen an increase in workers (3,100). With the construction phase of the mining
boom ending, there is a strong likelihood that construction workers who have been working
on mining construction projects will return to the wider construction Industry.

Industry has identified that the profile of Building and Construction and Civil Construction
needs to be improved by continued marketing. This should include the opportunities and
career paths in the Industry, as well as the lifestyle benefits that employees can enjoy.
3.2.1
Civil Construction
7
Although the Civil Construction sector is a discrete part of the Industry there are many commonalities
with general construction. The Civil Construction sector plays a very important part in Australia’s
economy and is an integral component in the development of infrastructure that is essential for
sustained economic growth.
The range of occupations within Civil Construction is very broad with skilled occupations supporting a
wide range of areas of activity.
7
SkillsDMC and Civil Contractors Federation: Civil Construction Occupation Review Report, March 2010
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Workforce Development Plan 2014 – Construction Industry
The workforce in this sector is mainly engaged in civil engineering work on projects such as roads,
subdivisions,
bridgeworks,
railways,
harbours,
sewerage
and
drainage,
electrical
distribution/transmission infrastructure, pipelines and recreation works. Two major areas of activity
are; plant hire and civil engineering project management.
3.3 Industry Trends
The Construction Industry, including Civil Construction, is strongly impacted by the variations in
economic cycles. Even though there is a continuing weak global outlook, there has been significant
growth in the Residential sector over the past 12 months.
This growth is illustrated in Charts 1 and 2 which compare construction activity and State Final
Demand. It is clear that the activity in the Construction Industry closely reflects the trends within the
WA economy as a whole. It is also apparent that the Residential sector has increased; the nonResidential sector has decreased slightly; whilst Engineering Construction has decreased significantly.
Chart 1 - Construction Work Done in $000s
ABS 8755 & 8762
Chart 2 - State Final Demand in $ millions
ABS 5206
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Workforce Development Plan 2014 – Construction Industry
3.4 Growth Trend of the Industry – 12 Year Period
Chart 3 shows the employment growth trend of the Construction Industry for the last 12 years and
represents a growth of 74%. In the same period, the Western Australian workforce increased by
8
39% .
Chart 3 - Employed in WA Construction Industry (000s)
ABS 6291.0
Chart 4 shows that averaged across the previous year, the Construction Industry employs over 10% of
the State workforce. In the month of May 2014, employment in the industry was at 137,510 with
9
approximately 19% of the workforce residing in regional areas. Approximately 43.7% of the
workforce is comprised of tradespeople with 75% residing in the metropolitan area.
Chart 4 - Employed in Construction as a Percentage of ALL WA Industry
ABS 6291.0
Over 87% of the Construction workforce is employed on a full-time basis, which has been fairly
consistent over the past 12 years.
8
9
ABS 6291.0.55.003 Table 5 - Labour Force, Australia, Detailed, Quarterly
ABS Census 2011
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Workforce Development Plan 2014 – Construction Industry
3.5 Labour and Skill Demand
10
The projected national labour force is expected to grow moderately in the period 2013-15 .
Table 1 shows national employment growth forecast rates for Construction in the period 2009 to 2019.
The Construction Industry is still one of the key growth industries along with mining, utilities, health
and community services that are expected to lead growth over the next five years.
Table 1 - National Employment Growth
Australia
Construction
09/10
10/11
11/12
12/13
13/14
F
14/15
F
15/16
F
16/17
F
17/18
F
18/19
F
10 yr.
Av.
-0.30%
2.36%
-0.49%
-1.33%
5.66%
3.65%
1.23%
-1.81%
-0.05%
2.85%
1.18%
ACIF (F=Forecast)
Table 2 shows short and long-term forecasts for construction activity and labour in Western Australia
11
as provided by the Construction Forecasting Council . Indications are for a 3.4% growth in the State
workforce between 2013-14 and 2015-16, then an average annual shrinkage rate of 0.68% to 201819. The 10 year average is predicted at a growth of 2.18% which appears a conservative figure for
Western Australia.
Table 2 - Western Australian Short and Long-Term Forecasts
Residential, Non-residential, Engineering (exc Heavy) in $ millions
2009-10
2010-11
2011-12
24,694
26,132
30,296
2012-13
2013-14 F
2014-15 F
2015-16 F
2016-17 F
2017-18 F
2018-19 F
33,008
34,874
33,169
32,131
32,394
31,511
31,110
128,000
146,000
150,000
151,000
149,000
149,000
154,000
Long-term Labour WA
125,000
126,000
132,000
ACIF (F = Forecast).
Chart 5 provides the previous forecast from Table 2 in graphical format.
Over the next five years there is a predicted 2.7% growth in labour requirement and 6.2% reduction in
value of work in the Construction sector.
Chart 5 - Western Australian Forecasts
ACIF (F = Forecast).
10
11
Australian Construction Industry Forum; http://www.acif.com.au/forecast
Construction Forecasting Council; http://www.acif.com.au/forecast
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Workforce Development Plan 2014 – Construction Industry
3.6 Forecasting
The following information is provided to show the differences in opinion on future prospects. However,
the common underlying theme shows there is concern about the near-future but some optimism about
mid- to long-term stability after a peak in the 2012-14 periods.
3.6.1
Housing Industry Association
The HIA update for Western Australia in April 2014 provides the following information about current
and forecasted building activity nationally and in Western Australia as at February 2014.
“Latest ABS figures show that residential building approvals remained close to record levels during
February”
“Although approvals fell by 5.0 per cent during February compared with January, the overall picture is
one of strength in the sector.”
“During February 2014, growth in seasonally adjusted building approvals was recorded in Western
Australia (+4.6 per cent)”.
12
The HIA now predict new home building in WA will ease by 6.8% in 2014-15 with a further fall of 3.9%
in 2015-16 and 3.4% in 2016-17. Commencements will fall back to 23,851 per annum.
3.6.2
Master Builders Association
The Master Builders Association (MBA) sources its forecasting information from the Housing Industry
13
Forecasting Group and the Australian Construction Industry Forum.
Table 3 - Dwelling Commencements (Forecast)
HIFG Forecast of Dwelling Commencements in WA – 2013-14 to 2016-17
Financial Year
Dwelling Commencements
% change
2012-13 (actual)
24,010
2013-14 (actual)
27,000
+12%
2014-15 (forecast)
25,000
-7%
2015-16 (forecast)
20,000 - 22,000
-13%
2015-16 (forecast)
20,000 – 22,000
No Change
Housing Industry Forecasting Group
3.6.3
BIS Shrapnel
BIS identify that on ‘year-on-year’ comparisons for the year ending March 2014 saw dwelling
14
approvals flat (0%) .
Latest indicators are that the forecasted increase in dwelling commencements for 2013-14 will be 18%
not the 14% projected previously.
It is forecast that non-residential building commencements in Western Australia will decrease in 201314 with a predicted drop of 22%, to approximately $5 billion. Commercial and industrial, social and
institutional commencements are also forecast to show strong growth of 14%. The Health building
15
sector is forecast to fall sharply (-89%) .
12
13
14
15
HIA Residential Construction National Outlook– A Key Driver of Growth, June 2014
Housing Industry Forecasting Group - October 2012
BIS Shrapnel Building Industry Prospect, May/June 2014, page 3
BIS Shrapnel Building Industry Prospect Sept 2012 page 25
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Workforce Development Plan 2014 – Construction Industry
3.6.4
Summary of Forecasting
Industry and economic analysts all have different views on the level of construction activity in the
future. This reflects the volatile nature of the Industry and its reliance on a wide range of economic
and social factors which are difficult to predict. However, it appears that short-term, the prospects for
housing construction in WA are showing signs of strength but weak and relatively flat in most other
areas.
According to the latest ABS data, building approvals for April 2014 have risen by 18% when compared
to April 2013. However, on an annualised basis, there has been a 28% growth. Forecasts by the
16
ACIF show a moderate increase in new houses of 1.6% in 2014-15 and 2.9% in 2015-16.
During 2013-14, the Construction Training Fund and Australian Brick and Blocklaying Training
Foundation (ABBTF) (bricklaying only) increased apprentice subsidies for selected trades where there
was an identified issue with low commencements. Increases have occurred in these trades and it is
forecast that if residential construction remains stable there will be sustained growth in apprentice
numbers.
It is also forecast by the ACIF that construction activity overall will reduce slightly from $237 billion in
2013-14 to $228 billion in 2014-15.
3.6.5
Civil Construction - Occupations
17
As the Mining Industry moves to the operational phase and the Residential construction sector
remains stable, Construction will again grow its workforce. With continuing strong infrastructure
spending, recruitment difficulties are expected to become more evident and possibly lead to inhibited
economic and job growth.
Skill shortages became more widespread as predicted in the Civil Contractors Federation (CCF)
survey of 2010 with an additional 17,300 workers/employees required industry wide by the end of
2012-13. This was a conservative estimate due to the long-term strength in Civil Construction and
18
growth prospects as major infrastructure projects commenced. The ACIF prediction for 2013-14 was
growth of 19.5% in road building but a 5.2% reduction in bridges, railways and harbours. However,
there was previously strong growth in bridges, railways and harbours construction in 2010-11 (53%)
and 2011-12 (67%).
Skill shortages are evident in many areas including, road and bridge construction, road maintenance,
pipe laying and leadership and supervisory roles. The forecast for pipelines in 2013-14 is (-14.5%)
and in 2014-15 (-20.7%), this will cancel the growth of 47% in 2012-13. It is predicted that employers
in the industry will have increasing difficulty in meeting skill needs in the short term but ease in the
medium to long term. There has been growth of 14% in trainees in the Civil Construction sector since
2008.
16
Australian Construction Industry Forum: Construction Market Report – Western Australia and Perth, May 2014
17
SkillsDMC and Civil Contractors Federation: Civil Construction Occupation Review Report, March 2010
18
Australian Construction Industry Forum: Construction Market Report – Western Australia and Perth, May 2014
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Workforce Development Plan 2014 – Construction Industry
3.7 Construction Workforce Structure
The Construction Industry workforce is dominated by tradespeople and technicians who, according to
19
the 2011 Census , comprised 49% of the workforce in comparison with all other combined industries
which had 13.11% as technicians or tradespeople. According to the latest ABS data there are
20
predicted changes in the distribution of occupations .
Table 4 shows that all other combined industries have a large component of professionals at 21.64%
compared to 4.95% in Construction. These figures demonstrate the high reliance on trade-based
occupations within the Construction Industry and how critical the trades are to the outputs of the sector
particularly when compared to other industries.
Table 4 - Distribution of Occupations compared to all other Western Australian Industries
21
Community,
Personal
Services
Workers
Clerical and
Admin
Workers
Sales
Workers
Machinery
Operators
and Drivers
Labourers
Not Stated
Technicians
and Trades
workers
Professional
s
9.42%
4.95%
49.06%
0.25%
11.21%
1.05%
8.75%
15.30%
0.16%
TOTAL
(All other
Industries)
12.49%
21.64%
13.11%
10.43%
14.73%
9.42%
7.56%
9.07%
1.62%
Managers
Construction
Industry
ABS Census 2011
Chart 6 - Distribution of Occupations compared to all other Western Australian Industries
22
ABS Census 2011
19
Source 2011 ABS Census Tablebuilder
Employed Persons (ST E09_Aug96_ANZSIC06) by Industry Division, Occupation Major Group, Sex, State
Source 2011 ABS Census Tablebuilder
20
21
22
Source 2011 ABS Census Tablebuilder
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Workforce Development Plan 2014 – Construction Industry
3.8. Industry Sectors - Sector Characteristics
The Construction Industry is divided into seven sectors (ASCO codes) as shown in Table 5 (as at
Census 2011).
Table 5 - ASCO Codes
ASCO
411
Sector in Construction
Residential Building and Construction
412
Non Residential Building and Construction
6.20%
421
Land Development and Site Preparation Services
8.25%
422
Building Structure Services
11.30%
423
Building Installation Trade Services
24.40%
424
Building Completion Services
19.00%
425
Other Construction Services
9.45%
% of Workforce
21.40%
The Industry structure continues to be dominated by a number of large companies, who employ
professionals and administrative staff to manage contracts, with the majority of operational or tradeslevel staff employed on a sub-contract basis.
A significant proportion of Construction trades operate as small businesses and sub-contractors, who
tender for work. Each of the small business employees are mostly employed on a sub-contract basis
with their own Australian Business Number (ABN) as a mechanism for managing ‘on-costs’ such as
worker’s compensation, superannuation and other entitlements. Subsequently, it is the subcontractor, the small employer, who is a significant employer of apprentices whether through a group
training organisation or by direct indenture.
Group Training Organisations (GTOs) play a key role in contributing to the employment of
Construction apprentices and as at March 2014, they were responsible for 36% of Construction
apprentice commencements and 32.4% of those ‘in training’. In the Electrical Industry, GTOs employ
23
21.1% of all electrical apprentices . These percentages have shown a downward trend from the peak
of 50% in 1999-2000 for apprentices employed by GTOs.
3.8.1. Civil Construction
Occupations critical to the Industry, such as bridge constructor, road constructor and pipe layer either
have no ANZSCO, or the title only reflects a part of the particular occupation. Supervisory or
management jobs including leading hands and supervisors are not adequately captured in ANZSCO
for civil construction occupations.
24
CCF data indicates the size of the Australian Civil workforce was approximately 350,000 . CCF (WA)
has estimated the Civil Construction (WA) workforce as approximately 40,000. It is suggested that
Civil employs between 30% and 40% of the construction workforce in Australia.
3.9. Regional Impact
It is estimated that 25% of skilled workers required by the Resources sector are recruited from the
25
Construction Industry . This situation leaves the Construction Industry in the difficult position of
meeting the cost of training and employing new recruits only to lose a large number of those people at
the point at which the Industry was about to receive a productivity return.
23
24
25
TRS Cube March, 2014
SkillsDMC and Civil Contractors Federation: Civil Construction Occupation Review Report, March 2010
ABS - 2008 Labour Mobility and Intentions Survey
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Workforce Development Plan 2014 – Construction Industry
Industry stakeholders have again expressed concerns that if in the future the Resources sector grows
ahead of a recovery in the Construction sector, there will again be a ‘siphoning’ of skilled and
experienced workers from construction. This could create a shortage during the 2014-18 period. This
26
issue is highlighted in a recent State Training Board report on the impact of crowding out nonresource industries
The broad geographical expanse of Western Australia means that there are significant variations in
climate and a subsequent response by the Industry to building requirements. For example, houses
built in the North-West of the State need to address a significantly different set of variations in climate
and local council regulations to houses built in Albany or Esperance. In Perth for example, the
majority of homes are built using ‘double brick’ construction whilst those in the North-West of the State
are either timber or steel framed. A further development is the introduction of more pre-fabricated,
transportable and modular accommodation that is used in the Mining sector but is also being slowly
introduced in the Residential sector in remote areas.
The above variations necessitate different skill sets for tradespeople and consequently increased cost.
Other issues leading to increased costs include, transporting materials to regions and remote areas,
the additional building requirements required to withstand harsh weather conditions, cost of housing
due to competition from the Mining sector and limited training infrastructure.
A number of regional issues were identified and raised by Industry stakeholders during industry
surveys in 2012-14;






There is a need to respond to substantial changes in technology, and for industry and the training
sector to ensure opportunities are given to workers to be trained in a range of skills with continual
27
up-skilling of existing workers .
Regional tradespeople need to possess a broader range of skills than their peers in the
metropolitan area;
Quality of work is more important in lower populations due to the need to acquire repeat business
in a smaller community;
There is considerable difficulty associated with coordinating trades where long distances are
involved and there are only a small number of sub-contractors willing to complete remote work;
The reluctance of trades and skilled labour to work in remote communities and the resultant lack
of competition causes price increases beyond that caused by skills shortages; and
The lack of local regional training and employment opportunities which will allow students to
complete their apprenticeships close to their employment and home.
There are also problems with continuity of work for all types of construction in wider regional and
remote areas. In a large proportion of construction, contractors travel, construct the building and
leave. As a result there is no incentive or reason to maintain a local presence and to employ or train
local residents.
An on-going concern raised by Industry stakeholders and employers in regions is the failure of the
training system to provide local training services. Statistics on regional training are detailed in this
Plan but it is apparent that approximately 40% of all regional apprentices are required to travel and be
accommodated away from home to undertake their off-the-job training. The cost of this can be a
burden for these apprentices, their parents and their employers. In the case of first year apprentices,
there is a significant social and safety problem in having young inexperienced people living away from
home and being unsupervised for lengthy periods of time.
This issue was raised during 2010-12 with the Department of Training and Workforce Development
and Managing Directors of regional training providers. In 2012, the Department of Training and
Workforce Development implemented changes to funding arrangements for metropolitan training
providers to encourage them to deliver in regional areas. Feedback from regional employers in June
2014 indicated that the industry is disappointed with the slow response from training providers in
26
27
Crowding Out: Competition for skilled labour in WA, State Training Board, February 2013.
CPSISC (2014), Environmental Scan 2013-14, Page 3
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Workforce Development Plan 2014 – Construction Industry
addressing this issue. The Training Council will continue to monitor any changes in the number of
apprentices being offered regional training opportunities.
3.9.1 Civil Construction - Regional
Regional Civil Contractors continue to be concerned with the process of small contracts being
‘clustered’ and then put out to tender. This process gives larger contractors from the metropolitan
region an advantage over smaller regional contractors. The smaller contractors are limited to their
geographical area while the larger contractors can cater for the large clustered contracts which span a
number of regions. In effect, the regional contractors then have to become sub-contractors to the
major contractors. The advantage of this type of arrangement is that a number of contracts can be
offered in one tender process and managed by one contractor.
There are also issues relating to quality of training, cost of training and availability of training,
particularly for small to medium sized businesses. These problems are exacerbated in regional areas.
A large proportion of the activity in this sector is in the outer metropolitan regions and beyond, where
there are challenges for training providers. Some providers, although committed, are not equipped to
meet the current or emerging needs of the sector in the areas of technical expertise, delivery
28
methodologies, resources, equipment or capacity to deliver to industry standards .
Issues that were raised during consultations include:



The need for using a double-cab in excavators and similar equipment. This would allow for safer
and easier training in a controlled side by side environment. The current situation is seen as an
OHS issue, as trainers have to teach/guide the student from the ground.
More training required to cope with the change and growth of the Industry, in areas of OHS and
technology.
The profile of the Civil Construction occupations need to be improved and made more attractive to
encourage potential employees to the Industry.
3.10. Level of Education in the Workforce
The level of education and age of the workforce continues to be a major concern for the Construction
Industry. The exodus of skilled employees reaching the end of their working life compared to the
lower numbers entering the Industry via the apprenticeship training system is also of major concern,
especially in the current economic climate.
For employees who have acquired their skills on-the-job without formal qualifications, consideration
should be given to encouraging these tradespeople to participate in the recognition of prior learning
process. These people can then be encouraged to train apprentices and utilise their qualifications for
this purpose.
As at the 2011 Census, 52% of the Construction Industry had completed a post-school qualification
and of these, five out of every ten had completed a Certificate III or IV. Trade-level qualifications are
therefore significant and are considered important within the Industry.
Table 6 - Overall Level of Education in Construction Workforce
Western Australian Construction
(Building) Industry
Certificate
I and II
1%
Certificate
III and IV
50%
Not defined
1%
All other
levels
2%
Not
stated
2%
Not
applicable
44%
Source 2011 Census ABS
From Chart 7, it is apparent that Certificate III and IV are well represented in a number of key ‘skilled’
areas. It appears that Certificate I and II are not well represented, however, the Census questions
relate to the highest achievement and the Certificate III and IV holders may well have completed, for
example, a Certificate I or II pre-apprenticeship qualification that is not recorded.
28
Civil Construction Occupation Review Report SkillsDMC
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Workforce Development Plan 2014 – Construction Industry
Chart 7 - Level of Education by Sector (ANZSIC93)
Source 2011 Census ABS

The Installation Trades (423) service sector and the Building Completion (424) service sector
are predominantly supported by Certificate III or IV (trade-level).

Other Construction (425) services have lower rates of Certificate III and IV qualifications as
does Site Preparation Services (421) and Non-Building Construction (412). This indicates that
other skill sets predominate, or skills are learned mainly on-the-job.

Building Construction (411), as the largest sector, has a significant number of other
occupations (labourers, administrative staff), where qualifications are not necessarily
required.
4. Quality and Relevance of Secondary Education
Industry employers and stakeholders continued to be dissatisfied with the performance of the
education system, especially as it continues to focus on tertiary entrance as a first choice and priority
for students.
Vocational Education and Training (VET) is often perceived by parents, students, teachers and
education administrators as less important and generally a second class option to university.
In respect to the Construction sector, the introduction of new industry specific vocational programs
(VETiS) in 2012-13 was a major improvement and is being introduced widely throughout the school
system. Both trade and para-professional pathways provide the opportunity for students, teachers
and parents to gain a better understanding of what industry requires. The new courses are eliminating
the previous array of offerings by schools to Year 11 and 12 students for Construction. The students
who complete one of the new pathways have much improved employment outcome opportunities if
selecting an apprenticeship, as employers benefit from maximum articulation.
During 2012-13 major learning resource development work in the Para-professional pathway was
completed. The same development effort for the new trade pathway occurred during 2013 and is
continuing in 2014.
In 2013 there were more than 36,000 senior secondary students in Years 10-12 enrolled in at least
one VET unit of competency or full qualification.

47% of Year 11 and Year 12 students enrolled in VET programs compared to 42.4% in 2012.

31.5% of enrolments were at AQF level 1.

59.5% of enrolments were at AQF level 2.

8% of enrolments were at AQF level 3.

1% of enrolments were at AQF 4 and above.
Of the top 15 qualifications selected by senior secondary students in 2013, only 621 students
achieved a Construction qualification and of these 234 were in Certificate I in Construction. This is a
low-level qualification that does not directly articulate to a trade qualification. The remaining 387
completed a Certificate II in Construction, Construction Pathways, Civil or Para-professional program;
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Workforce Development Plan 2014 – Construction Industry
In 2013, for Year 10-12 enrolments;




12,876 Certificates II, III and IV qualifications were achieved across all industry sectors;
1,636 students completed a Certificate II in Business with a total of 2,841 enrolments.
234 students completed a Certificate I in Construction.
375 students completed a Certificate II in Construction.
The figures above show that there needs to be a far greater emphasis on encouraging students to
pursue a career in Construction. When considering the annual average number of employees in the
Construction Industry, 141,450 or approximately 10% of the State’s workforce, and employment of
40% of the State’s apprentices, the extremely low number of students completing Year 10 to Year 12
with a Certificate I or II in Construction is of major concern.
One of the possible reasons for the low number of students in Construction is lack of accessibility of
training resources or staff capable of delivering the qualifications in schools
However, due to increased support from the Construction Training Fund for the Construction VET in
Schools programs, the number of school students enrolled in Certificate II Construction qualifications
has increased by 100% in 2014.
Industry sees as a priority, the need to support the implementation of quality resources, similar to the
Construction and Para-professional pathways, to support a single training model for all schools.
Industry stakeholders perceive that a number of education staff in schools, including teachers, VET
coordinators and counsellors, have a less than positive view about vocational education. These
groups have generally not worked in industry and therefore have little knowledge or understanding of
the opportunities for, and needs of, students who are not destined for university.
The vast majority of jobs in the Construction Industry and in many other industries do not require a
tertiary-level education. The education system is however, directing about 70% of its students into
tertiary entrance courses. Even though about 80% of WACE students achieve the necessary
education standard for university entry, about two-thirds of the students who achieve an Australian
Tertiary Admission Rank (ATAR) actually gain a place in university.
Issues raised during industry consultations include:

Some schools continue to ignore the value of VET trade training and therefore have a shortage of
good trade trainers. Electrical, plumbing and carpentry and joinery are the main trades being
delivered in schools.

Industry should be more involved with schools and colleges to provide career information, and use
strategies such as ‘adopt’ a high school to provide work experience and scholarships.

Students should be placed into industry settings to provide relevant work experience in trade
apprenticeship and traineeship streams - industry need students to be ‘work ready’.

School-based apprentices are viewed as difficult to manage and students not exiting school at the
same standard as pre-apprentices.

If schools cannot provide sufficient training then industry requires pre-apprentices trained through
RTPs or partnerships need to be established between schools and RTPs to encourage delivery in
schools.

Assistance needs to be given to schools and students to identify a student’s potential by Year 9.

Programs such as accountancy, business, finance, budgets and sub-contracting should be run in
conjunction with VETiS trade courses, as graduates often need to become small business
operators when they complete their apprenticeships (due to the sub-contract nature of the
Industry).
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Workforce Development Plan 2014 – Construction Industry
5. Gender/Age Participation
Over a number of years, Access Economics has predicted that a ‘demographic gap’ is looming. The
pace of retirement will grow in the next few years as ‘baby boomers’ either scale down their working
hours or retire. However, the number of students exiting the education system is expected to remain
constant until the 2020s apart from the impact of the ‘half cohort’. For the next five years it is
predicted that less than 125 people will exit the education system for every 100 retiring. This is the
29
highest ratio of job market retirements to new entries in Australia’s history .
National projections for all sectors, including the Construction Industry, indicate that the number of
graduates will improve after 2023 due to an increase of 20% in the birth rate between 2001 and
30
2009 .
While Western Australia has an approximate 10% share of Australia’s population, there is a
disproportionate share of construction activity in the two mining states of Western Australia and
Queensland. A significant number of the additional workers required for the Construction Industry are
more than likely going to be required in Western Australia.
Chart 8 - Age Distribution within the Construction Workforce – ALL TRADES
31
Source ABS Census 2011 and 2006 Data
There are concerns being expressed by industry that the drop in the 15-19 age group is reflected in
apprenticeship commencements and this will cause skills shortages as the economy recovers. There
is also concern raised about the low number of school leavers as a result of the half cohort which is
now beginning to exit school.
5.1. Impact of Age and Chronic Conditions on Longevity (age/time) in the Industry.
Employment in the Construction Industry is generally site-specific and sub-contract-based, with trades
required in specific sequence. There is a requirement to commence and complete a ‘job’ within a
specific timeframe. The amount of contract work that is available is largely dependent on the
robustness of the economy. The capacity to earn more money in times of economic growth
encourages workers to complete extended hours and to a large extent this has previously hidden skills
shortages.
Construction trades generally require a high and consistent level of physical effort involving lifting,
carrying, handling potentially dangerous goods, harsh work environment and repetitive actions. These
demands can have a detrimental physical effect with acute and chronic injury levels amongst the
29
30
31
Access Economics Pty Ltd – Deloitte “Building The Lucky Country” (2011) – page 6
ABS, Births, Australia, 3301.0
Source 2011 Census ABS DataCUBE
V20141003e
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Workforce Development Plan 2014 – Construction Industry
highest in any industry. A survey conducted by the Construction Training Fund in 2009-10, revealed
that 12% of all respondents reported that they had chronic injuries that affected their ability to work in
their trade, and 66% of these respondents were now working as builders in the Industry. When asked
about retirement, 9% of respondents expected to retire within the next 5 years. This finding is
32
supported in the age demographics from the 2011 Census data with 12% aged between 55 and 64 .
33
In a recent survey of industry stakeholders , there were consistent concerns expressed regarding the
aging of the current workforce and the impact that will occur with the exodus of the ‘baby boomers’.
There is also concern that large numbers of existing workers continue to remain in the workforce due
to the continued poor performance of superannuation funds.
However, there is support for encouraging older tradespeople to remain in the workforce as
supervisors or to be involved in the maintenance sector of the industry. Both of these areas suffered
from skills shortages prior to the 2008 GFC. To encourage retention of the aging workforce, it was
suggested by stakeholders that more flexible working arrangements, provision of tax incentives,
including superannuation concessions, for the over 65 years of age cohort and the provision of
specific training may be required.
It was also suggested that more mature workers who find it difficult to cope with the physical aspects
of the trades should be encouraged to become trainers or mentors. However, some training providers
have previously used lecturer recruitment advertising that encouraged younger tradespeople to enter
the training sector.
Mentoring of apprentices is now viewed as essential if the completion rate is to be improved. The
recently introduced ‘mentoring’ programs that have been funded by the Federal Government are
expected to begin to have an impact in 2013.
Based on the 2011 Census, Chart 9 provides a realistic snapshot of the age distribution in a
comparative analysis across trades and gives some indication of the correlation between age and
physical effort required in each trade.
Chart 9 - Age Distribution across a number of Construction trades
Source 20011 Census ABS DataCUBE
32
33
ABS Census 2011 Tablebuilder data
Construction Training Council - Stakeholder Survey September/October 2012
V20141003e
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Workforce Development Plan 2014 – Construction Industry
5.2. Number of Workers and Age Distribution by Trade/Occupation 34
The age distribution within trades clearly indicates the trades that suffer from tradespeople exiting
early and finding alternative work and also shows occupations that the aging workforce remain in for
longer periods of their working life. The following should be noted:





Roof Tiling is predominantly an occupation for under 40 year olds.
Mobile plant operators are an aging cohort where trade skills take many years to develop before
an operator is placed in charge of a plant. In addition, young people are not attracted to the
occupation as one of ‘first choice’.
The peak age for a carpenter and joiner is on average 30 years of age. It is most likely that
people in this trade move into higher level occupations, establish businesses or are subject to high
rates of injury that causes a change in occupation.
The occupations associated with the wet trades appear to have a comparatively short working life
with a considerable decline in participation after 49 years of age.
Handyman/maintenance persons enter the occupation after experience in other trades. This
assumption is backed by anecdotal evidence that supports the notion this occupation could utilise
the aging workforce and release younger tradespeople to other areas.
Aging Population issues that were raised during previous consultations that remain current:




Skilled, mature tradespeople could be used for mentoring or apprentice training, particularly subcontractors.
Occupations with aging workers could be modified to more of a trainer role - this strategy could
help retain and support older Construction workers.
There should be a clear career pathway map for all employees including upskilling apprentices
(from initial employment) to enable the transition to a managerial role.
Companies should adapt to workers needs, for example, if FIFO not suitable - arrange
employment in the manufacturing sector of modular or transportable buildings
5.3. Civil Construction - Demographics35
The demographic profile of the Civil Construction sector aligns with government predictions in its
Intergenerational Report36. It is noted that Civil Construction, as in General Construction, has many
physical occupations that have much earlier retirement ages for certain occupational groups when
compared to other white collar occupations.
The majority of the supervisor and operator workforce is in the 25 to 44 age group with a decline in
participation rates between the ages of 45 to 54. There is a return to the workforce between the ages
of 55 to 64 but usually in different roles, as appears to occur in other construction sectors.
Civil Construction has approximately 10% female participation, predominantly in traditional roles which
is considerably less than some other sectors.
Chart 10 provides a representation of the workforce age profile of various Civil and Heavy Engineering
trades compiled from the ABS 2011 Census. (Heavy Engineering is included as ABS has combined
the two together).
34
35
36
Source 2011 Census ABS DataCUBE
SkillsDMC Environmental Scan 2012
Intergenerational Report – Australia to 2050 Future Challenges ISBN 978-0-642-7-4576-7 2010
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Workforce Development Plan 2014 – Construction Industry
Chart 10 - Civil Construction Workforce Age Profile
37
2011 census ABS
6. Apprenticeships and Traineeships within the Construction Industry
Apprenticeships and Traineeships have, for many years, provided a reliable supply of tradespeople for
the Industry. However the total attrition, which is a combination of withdrawals and cancellations, from
38
the apprenticeship system has raised a number of concerns.
Withdrawal rates in Construction, excluding electricians, have ranged over the last 10 years between
9% and 18% of all commencements. Cancellation rates have ranged between 22% and 41% with the
major increases in recent years.
There is evidence to show that the completion rates are understated due to the method of data
collection and recording at a National level. The National Centre for Vocational Education Research
(NCVER) has identified that when an apprentice changes employer, this is identified as a cancellation
and recommencement.
39
When this anomaly is taken into account an adjustment of up to 29% can be identified . However, in
Western Australia a record of recommencements indicates an average adjustment of between 5% and
20%.
A significant proportion of Electricians work in the Construction Industry but they are not included in
the Construction Training Council coverage. However, the Electricians are included in this plan to
provide a comparison of performance of individual trades.
There is a significant difference in completion and cancellation rates between licensed and unlicensed
40
trades. In the years 2004 to 2008 there was an average 15% difference in completions. The much
higher completion rate for electrical apprentices may be attributed to better quality applicants who are
more closely screened before recruitment. The stronger result for licensed trades is also due to the
fact that there is no employment outcome for apprentices who do not successfully complete the
indenture.
In recognition of the increased completion rates in electrical and plumbing, there is growing support
amongst key stakeholders that there should be a review of the benefits of trade licensing as a
workforce development strategy. There is currently growing support for licensing in structural trades
such as Bricklaying and Carpentry.
A 15% improvement in completion rates for unlicensed trades would not only result in a significant
reduction in skilled workforce demand, but also a significant reduction in the cost to industry,
37
38
ABS 2011 Census
Completion rate figures may be artificially low by between 5% and 10% due to the NCVER recording apprentices who transfer between employers as cancellations and
then recording as commencements rather than re-commencements.
39
From a National perspective NCVER have estimated the underestimation in completion rates could be as high as 29% in Construction trades.
40
Figures for 2009 onwards are not included as there are outstanding contract completions to occur
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Workforce Development Plan 2014 – Construction Industry
Government and the community. The attrition for unlicensed trade apprentices has averaged between
600 and 1,000 apprentices per annum. The training cost for these apprentices is in the millions of
dollars.
The ratio of apprentices to the number of tradespeople in the Industry is known as the ‘training rate’.
Using the previous data, the training rate for the Construction Industry is calculated as approximately
13% which compares to an ‘all other industries’ average of 8.2%. As at June 2013, the Construction
Industry, including electrical mechanics, employed approximately 19% of combined apprentices and
trainees.
6.1 Apprentice In Training
During 2010-13 there was a concerning trend of low level apprentice ‘Commencements’ in
Construction and this will have a negative impact on the ‘In Training’ figures over the next 6 to 36
months. There has been a marked improvement in 2013-14.
Although the total number of apprentices ‘In Training’ is currently stable, this may be due to the
number of apprentices being retained in the Industry and the impact of State and Federal initiatives.
Construction ‘In Training’ apprentices have increased by 5.5% and electrical by 3%.
Chart 11 - Construction Apprentices ‘In Training’ (including Electricians)
TRS DataCUBE - March 2014 and Construction Training Fund - Apprenticeship data.
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Workforce Development Plan 2014 – Construction Industry
6.2 Apprentice Commencements
To enable 2014 to be included in the following chart a full year to March is used. This shows that
construction commencements in March to March 2013-14 increased by 23.85% compared to the
41
previous year (March to March 2012-13) . A more reliable statistic is the ‘In Training’ in Chart 14.
In the same period, electrical apprenticeship commencements decreased by 5.85%. When combined
with all Construction apprenticeships there has been an overall increase of 10.62% in
commencements. Tiling commencements have contracted by 2.4%.
Chart 12 - Construction Apprentices ‘Commencements’ (Year to end of March 2014)
TRS DataCUBE - March 2014 and Construction Training Fund - Apprenticeship data.
Chart 13 - Commencements by Comparison to Previous 12 months
TRS DataCUBE - March 2014 and Construction Training Fund - Apprenticeship data.
The previous four year trend of decreases in commencements raises major concern with the impact
this will have on the future supply of tradespeople in the Construction Industry. However, although
lower than previous highs, construction apprentice commencements have improved significantly
during 2013-14 to March. However, the impact of Competency Based Wage Progression is yet to be
identified.
41
These figures must be used with caution due to the inclusion of previous year’s March to March data in 2014 for calculation purposes. All other years are for full
calendar years.
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Workforce Development Plan 2014 – Construction Industry
6.3 Training Rates 42
Over the last four years there has been a significant decline in ‘training rates’ for many of the
Construction trades including Electrical.
The Training Rate is the ratio of apprentices to tradespeople and the table below shows how severe
the decline in some trades has been compared to 2009.
Table 7 - Training Rates
Training Rates
Trade
Electrician (previously identified as Electrical Mechanic)
%
change
-5.5%
2014
2009
26.60%
28.16%
Carpentry & Joinery
-46.9%
7.70%
14.50%
Plastering
-52.8%.
0.85%
1.80%
Plumbing & Gas
-16.3%
11.10%
13.26%
Bricklaying
+85.0%
6.79%
3.67%
Painting & Decorating
+11.5%
6.80%
6.10%
Roof Plumbing
+22.7%
10.80%
8.80%
Wall & Floor Tiling
+194.1%
15.00%
5.10%
TRS DataCUBE March 2014 and ABS 6291 ST_E08
Wall and Floor Tiling appears to have experienced a healthy increase, however, this is due to the
decline in the number of tradespeople in the Industry rather than maintaining apprentice numbers.
The significant increase in Roof Plumbing is due to the low numbers of tradespeople in the industry
and concerted efforts to promote the trade.
Bricklaying appears to correspond to a recent increase in housing approvals, activity in the Residential
housing sector and increases in employer/apprentice subsidies.
Chart 14 - Training Rate - Current (Ratio of Apprentices to Tradespeople)
TRS DataCUBE - March 2014 and Construction Training Fund - Apprenticeship data
42
‘Training Rate’ is the number of apprentices ‘in training’ compared to the number of tradespeople in the specific industry as stated by ABS 6291.0.55.003, ST_E08
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Chart 15 - Apprentices ‘In Training’ by Major Industries
DTWD TRS Data - March 2014
Chart 15 shows the percentage share of apprentices ‘in training’ when compared across industries. It
should be noted that although electrical apprentices are shown separately and are covered by a
different Training Council, the majority are employed, at least part of their time, within the Construction
Industry and receive subsidies from the Construction Training Fund.
Chart 16 shows the growth of Construction apprenticeship numbers, including electrical over the last
eight years and the reliance that is placed on apprenticeships to meet the skills demand. The industry
has had a peak ‘training rate’ of between 15% and 16% (apprentice to tradesperson ratio) and is
currently 13% which compares most favourably with the ‘all other industry’ average of 8.2%.
Chart 16 - Growth in Apprentices ‘In Training’ over the last 8 years
DTWD TRS Data - March 2007 to 2014
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Workforce Development Plan 2014 – Construction Industry
As Industry activity is not restricted to the metropolitan area, regional construction requires a strong
regional workforce with apprentices being a critical labour source for many businesses.
Table 8 indicates that regional employers are strong supporters of the apprenticeship system.
However, the training system only meets approximately 60% of the regional training demand for
apprenticeship training places. Although this issue was addressed by the Department of Training and
Workforce Development in 2012 approximately 40% of the remaining regional apprentices must
access training by travelling to Perth. This is a key issue for regional stakeholders.
Table 8 also shows the percentage share of the State’s apprentices and trainees who reside in a nonmetropolitan postcode. It is clear that regional Construction apprentices and trainees comprise 28.8%
and 35.6% respectively of the State cohort and are a significant component of the Industry.
Table 8 - Apprentices ‘In Training’ - Regional (Non-Metropolitan)
In Training 2014
Apprentice/Trainees
with non-metro post
code
% of Regional
Apprentices and
Trainees attending a
Regional Registered
Training Provider
Number of Regional
Apprentices and Trainees
attending a Regional
Registered Training Provider
Construction
28.8% (1,016)
61%
620
Electricians
26.1% (1,077)
61%
659
Combined
27.0% (2,093)
61%
1,279
35.6% (198)
Estimated at 58%
115
Apprentices
Trainees
Construction
DTWD TRS Data - March 2014
Chart 17 shows the number of Construction apprentices ‘In Training’ in regional Western Australia that
have to attend a metropolitan training provider compared to a regional training provider for their
training, as at March 2014.
Chart 17 - Regional Apprentice Training Provision
DTWD TRS Data- March 2014.
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Workforce Development Plan 2014 – Construction Industry
6.4 Under-Represented Groups Participation
The Indigenous population is a ‘young’ population with the 2011 Census indicating that the average
age of Indigenous males is 22 from a population of 34,419. The average age of a non-Indigenous
43
male is 37. More than half (56.2%) of Indigenous males were under 25 years of age in 2011 .
There are currently forecasts for billions of dollars’ worth of resource projects North of the 26º parallel
where 3.3% of Western Australia’s population resides. A significant percentage of the population in
this location is Indigenous with a large number unemployed, not actively looking for work or not in the
labour force.
Of those who are employed, a significant number are without qualifications. The participation of
Indigenous people in Vocational Education and Training tends to be in Certificate I or II, or subject
specific enrolments with limited employment outcomes.
A total of 3.38% (704) of Western Australian Indigenous workers reported that they worked in the
Construction Industry. Almost 10% of the State’s workforce is employed in the Construction Industry,
44
so there is a gap of over 6% which can be improved upon .
The biggest problem in raising Indigenous employment in the Construction Industry is that the
Industry’s main recruitment method is apprenticeships, which because of their duration, are not
conducive to many Indigenous people. As at December 2012, there were 300 Indigenous apprentices
and trainees within the Construction Industry, which equates to 6.5% of the apprentice/trainee
45
population .
Low rates of school attendance and participation amongst Indigenous children contribute to low
literacy and numeracy levels which in turn limit access to mainstream training options. From a labour
market perspective, retention to Year 10 is a significant step for Indigenous students with evidence
indicating that it almost doubles the chances of employment.
Construction trade training programs are a mixed success with Indigenous students as the training
can be at too high a level, such as training for apprenticeships and qualifications, when elementary
skills have not been fully developed.
The Construction Training Council recognises this and during 2010-11 developed the Certificate II
Traineeship in Building Maintenance. This traineeship provides additional funded hours in order to
address the literacy, numeracy, life and employment skills deficit. The qualification is a destination in
itself, as well as being a pathway into the trades and more complex aspects of construction as
proficiency and confidence grow. During 2011, a number of regional training providers showed
interest in adding this qualification to their scope for 2012-13 and it is now actively promoted by a
number of metropolitan training providers.
Industry stakeholders have expressed a range of opinions addressing the needs of the Indigenous
population. These include:

Provision of training in regional centres or areas with high unemployment using specific
training programs rather than mainstream qualifications;

Provision of role models as mentors, such as the Fairbridge Village model of
training/mentoring that utilises successful Indigenous students as trainers and mentors;

Utilising more on-the-job training rather than institutional-based;

Introducing students to the Industry through try-a-trade programs to encourage participation;

Under-represented groups need to be targeted for support with the intent of encouraging
current employers of apprentices, because of their experience, to consider employing
apprentices and trainees in these groups.
43
Source 2011 Census ABS DataCUBE
2011 ABS Census Tablebuilder data
45
DTWD TRS Data December 2012
44
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6.5 Traineeships in the Industry
The following table shows the number of trainees ‘in training’ at the end of March 2014. However,
there are also an additional 76 trainees in Certificate IV Civil Construction Supervision but registered
as employed in the Mining and Resource sector.
Table 9 Trainees ‘In Training’
Traineeship
ASSISTANT BUILDING SURVEYOR (LEVEL 5)
0
BITUMINOUS SURFACING (LEVEL 3)
4
BUILDING MAINTENANCE (LEVEL 2)
20
CIVIL CONSTRUCTION (LEVEL 2)
1
CIVIL CONSTRUCTION (LEVEL 3)
115
CIVIL CONSTRUCTION DESIGNER (LEVEL 5)
1
CIVIL CONSTRUCTION MANAGER (LEVEL 5)
1
CIVIL CONSTRUCTION SUPERVISOR (LEVEL 4)
0
CONCRETING (LEVEL 3) - (AVAILABLE AS AN APPRENTICESHIP)
0
DOGGING (LEVEL 3)
5
DRAINAGE (LEVEL 2)
6
ESTIMATING (HOUSING) (LEVEL 4)
21
GENERAL CONSTRUCTION (LEVEL 2)
31
PIPELAYING (LEVEL 3)
53
PLANT OPERATIONS (LEVEL 3)
95
RESIDENTIAL DRAFTING (LEVEL 4)
2
RIGGING (LEVEL 3)
76
ROAD CONSTRUCTION AND MAINTENANCE (LEVEL 3)
55
ROAD MARKING (LEVEL 3)
5
SCAFFOLDING (LEVEL 3)
4
SITE MANAGEMENT (LEVEL 4)
20
STEEL FIXING (LEVEL 3)
30
TRENCHLESS TECHNOLOGY (LEVEL 3)
11
Building & Construction
556
Mining & Resources Sector - Certificate IV in Civil Construction Supervision
(RII40709)
76
TRS DataCUBE March 2014 Apprenticeship Data
There are currently 556 trainees in training primarily in the Civil Construction sector. It is encouraging
to see that there has been sustained growth in traineeships in recent years. In 2008 there were 450
trainees in training.
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Workforce Development Plan 2014 – Construction Industry
6.6 Civil Construction
The CCF WA has recently completed an industry survey of their members, Landcorp and Horizon
Power contractors. The results of this survey calculated indigenous employment at 3.8%. Of the
46
businesses surveyed, 3% were Aboriginal owned and representative of the overall population .
Guidelines for Aboriginal Participation in WA Civil Construction and Landscaping Industries were
established and are contained in the Reconciliation Action Plan 2012–13 (which is to be reviewed
regularly).
The Guidelines set out commitments by CCF and Landcorp and include:

Training and Induction Programs to build cultural understanding.

Development of Aboriginal employment strategies and encouragement to engage Aboriginal
owned companies.

Development of a funding approach to support literacy, numeracy and work-readiness
programs.
7. Employment and Training Issues
During the research and consultation process for the Workforce Development Plan a number of
common concerns were identified. These concerns were identified by stakeholders as having an
impact on the short and long-term future of the Construction Industry.
7.1 Employment Issues
Issues raised by stakeholders during consultations include:
1.
2.
3.
4.
5.
6.
7.
8.
9.
The continued suppressed Construction sector.
Resources sector ‘siphoning’ of Construction workers without a contribution to a levy system.
Reduced number of students exiting school (half cohort) and rise in school leaving age.
Reduced numbers of pre-apprentices in skill shortage trades.
Previous two years of decline in apprenticeship commencements will result in reduced numbers of
skilled tradespeople in the next three to five years.
Increasing apprentice commencements and completions.
As Resource Industry engineering construction projects complete in 2014-15, there is no accurate
estimate of how many workers will move to Mining operations or return to the mainstream
Construction sector.
If the home building market is not stable, contractors will be reticent to employ apprentices as they
will not have the continuity of work available.
Although Western Australia has approximately 10% of Australia’s population, it has a
disproportionate amount of work available. Western Australia will require more skilled workers to
support the recovery in the Housing sector.
7.2. Training Providers (RTPs)
The Construction Industry continues to be concerned about the lack of consistency with delivery of
training and assessment. It also has concerns with issues relating to allocation and use of profile
funding by private training providers.
Issues raised by Industry during the consultations:

46
Competency-based wage progression (CBWP) issues relating to students completing year 12,
Certificate II or pre-apprenticeships must be considered as critical. Employers must become
involved in the process of assessing apprentices to address changes to the pay structure for
apprentices under the Fairwork Australia model.
Reconciliation Action Plan 2012-13 Landcorp
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






There should be more regulatory control and ongoing reviews of RTPs especially relating to the
assessment process. Assessment ‘on-the-job’ should be considered an integral part of confirming
apprentices are competent in the workplace.
Gaining access to on-site training, assessment and validation of on-site competence.
Review student contact hours - some RTPs appear to be taking advantage of this funding and
deliver qualifications or RPL in vastly reduced timeframes.
RTPs should deliver locally to enterprises, especially in the case of regional apprentices.
RTPs need to consult and communicate more regularly with Industry to ensure that they are
delivering the programs that Industry requires in a consistent manner across all training providers.
An independent assessment process to confer a Trade Certificate under a skills recognition
process that can also be utilised in the assessment of existing workers should be considered.
Dissatisfaction with the bureaucratic process of employing and registering apprentices with too
many organisations involved. Poor communication between organisations such as Australian
Apprenticeship Centres, ApprentiCentre and RTPs.
7.3 . New and Emerging Skills
The future will bring challenges that the Construction Industry will need to prepare for with new and
emerging technologies and skills being required. This will require more planning and training in areas
such as OHS, software and computer technology such as Building Information Modelling (BIM),
equipment, regulatory changes and new work practices.
Conclusions reached in consultation with Industry during 2014
47
include:

The use of modular and pre-fabricated construction is having an impact in the commercial and
regional residential sector more than in mainstream or metropolitan residential construction.

The use of driver-less trucks including excavators, is viewed by the Civil Construction sector to be
one of the most important technologies that may impact the sector in the long term. Vehicles
incorporating GPS, laser and radar detection sensors, wireless communication networks and
vehicle controllers will initially be operated by a supervisory computer in an on-site Operations
Centre. One company in Western Australia, using this technology, is planning to move the
Operations Centre to Perth where the system will be controlled 24 hours a day. In regard to safety
issues, vehicles are equipped with obstacle detection systems with the automated truck
programmed to stop or reduce speed. This technology may, in the long term, create an
employment shift due to the reduction in the use of plant operators and an increase in computer
31
technicians .

The implementation of new technologies could accelerate rapidly if housing codes (sustainability)
are raised.

New technologies may be slow to gain acceptance in the Residential sector due to the WA market
being heavily biased towards double brick construction.

There is an identified change in the use of new technology in the Commercial sector, particularly
in the North West where they are using manufactured components from overseas facilities.

Major builders could be the drivers of change if they market alternative building options, especially
in the lower end of the market (affordable housing).

No specific upgrading of trade qualifications or courses appears to be required at this stage, other
than within apprenticeship training. This requirement is usually undertaken by the Training
Package developers during review processes.

Up-skilling and cross-skilling will be needed in the future. This will possibly require the introduction
of short course skills training, or in-house training, for existing workers as there will be cross
47
The Impact of New Technologies on the Construction Industry, Construction Training Fund, June 2014
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Workforce Development Plan 2014 – Construction Industry
trades skills utilised for Modular construction. For example, up-skilling a roof carpenter to perform
wall and floor fixing, steel framing, etc.

Short course skills training can be developed and implemented within the Construction Industry
where the training occurs after completion of a trade qualification.

The share of the modular and alternative building material market could significantly increase if
more information and promotion occurs with potential homebuyers to create a better awareness of
48
the alternative building methods available .

Wet Trades, particularly bricklaying have been identified as being the most at risk. However in the
49
Eastern States this trade appears to remain in demand . This may be due to having high
volumes of brick veneer housing construction due to population demand; therefore, the number of
bricklayers will remain at current levels considering the ageing trade cohort.

There is strong evidence to demonstrate acceptance of pre-fabricated construction especially for
Park Homes, North West resources accommodation sector, regional offices (Government) and to
some extent the residential market.

The ability to utilise the local metropolitan, rather than regional workforce is identified as a strong
driver for modular pre-fabrication construction.

The level of BIM training demand will depend on the lowering of the minimum value of contract
that must use BIM.

The use of lower level BIM will increase slowly, as the start-up cost of using BIM at all levels is
currently viewed as prohibitive.

Monitor the introduction of BIM requirements for the construction workforce and establish if further
training is being developed both nationally and internationally.

In respect to the requirements of the apprenticeship training contract and the implementation of
specialised new construction processes, employers should ensure that apprentices obtain the
breadth of knowledge to complete their apprenticeship. This may require apprentices to gain
experience on other sites, as is the case with Group Training Organisations.
Strategies to cope with the changing industry could include:



Encourage RTPs to include new technologies and equipment such as BIM as part of the
Construction training program for all apprentices.
Plan and train the workforce for alternative construction methods other than double brick, for
example, modular, pre-fabricated and pre-framed construction.
Subsidise the training of new and emerging technologies in trades that will be required to meet the
demands of the future or change from current methodologies.
7.4 Workforce Development Opportunities
1. Increase VETiS activity in Construction for Years 10 to 12 with clear career pathways using the
industry approved Certificate II trade, para-professional and civil construction pathways.
2. Continue the promotion of apprenticeships as a career choice to school students.
3. Provide advice to school career advisors to ensure that all students that exit the University sector
during the first year of study have an understanding of the opportunities in the Construction
Industry. This is a time of high attrition in universities and promotional activity could utilise the
‘Earn-as-you-Learn’ as a marketing strategy.
48
49
The Housing We’d Choose – a study for Perth and Peel Regions. Page 19, Department of Housing/ Department of Planning (2013).
http://sourceable.net/plasterers-bricklayers-wanted-for-brisbane-housing-boom/
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4. As workers exit resource construction projects they need to be given the opportunity to train or
retrain for entry to the mainstream Construction sector.
5. In anticipation of the return of workers to the Construction Industry in metropolitan and regional
areas, promote the opportunity for them to become trainers. This will alleviate the issue of aging
workers not being able to cope with the rigours of trade occupations
6. Less than 4% of Indigenous workers are employed in the Construction Industry. There needs to
be a more concerted effort to encourage employment in the sector, especially in the Engineering
and Civil Construction sectors in regional areas.
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Workforce Development Plan 2014 – Construction Industry
8. Industry Specific Issues and Key Strategies
The following strategies have, where possible, been placed within the Plan in the most relevant
section.
8.1 Apprenticeships

Review the Commonwealth Government income tax on subsidies paid to employers of
apprentices as payment of the tax detracts from the purpose of any subsidies.
The
Commonwealth Government claims 30% of the incentives in income tax.

Ensure all training contracts are registered and actioned at the earliest possible time and consider
a ‘one stop shop’ approach to the signup and completion processes and utilise the ApprentiCentre
for this process.

Promote the VETiS industry supported Certificate II trade, para-professional and civil construction
programs to employers to ease reliance on pre-apprenticeships and ensure an adequate number
of apprentices and trainees available to enter the Construction sector

Support and promote programs such as apprentice Kick-start initiatives.

Provide higher incentives for trades that are at risk with very low commencement rates.

Implement an on-site program of mentoring direct indenture apprentices using mature/retired
tradespeople. This will support the reduction of attrition in the apprenticeship.
8.2 VET in Schools

Mandate the new VETiS - Construction Trade and Para-professional pathways as the single
‘funded’ training model for all schools.

Implement the new VETiS program for the Civil Construction sector as developed in 2013-14 by
the Construction Training Fund

Support marketing and promotion campaigns aimed at achieving a much larger cohort of school
students who complete full courses of vocational education in the Construction Industry.

Approve and implement the new Plumbing VETiS Certificate II for delivery in schools and preapprenticeships.

Continue to develop and implement training resources for the new Certificate II trade pathway in
Construction.

Market and promote the new para-professional and trade pathway learning resources to schools
and RTPs who have students considering a career in Construction.

Ensure teachers of Construction trades are provided with the same standard of training and, if
appropriate, industry experience as lecturers within RTPs.

Implement the Try-A-Trade component for Year 9 students unsure of their career choice.

Provide adequate ‘delivery’ funding to schools and RTPs to ensure the new VETiS programs in
Construction are implemented in schools.
8.3 Indigenous and Disadvantaged Youth in Unemployment
Simplify the process for engaging and employing apprentices and eliminate the need for consultation
with multiple agencies. This recommendation would encourage employers who have not previously
employed an apprentice or trainee and could be targeted at areas of high youth unemployment,
disadvantaged and disengaged youth. Resources Industry

Encourage the Resources Industry to reimburse or contribute to the previously expended cost of
training workers who are recruited from other industries in times of economic growth and skills
shortages.
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Workforce Development Plan 2014 – Construction Industry

Encourage the Resources Industry to train apprentices and trainees in trade occupations at the
same rate as the Construction Industry.

Provide skills gap training for mature-aged workers returning from the Resources sector to
encourage them to seek employment in the Construction Industry.

Lobby Government to require project owners to pay the training levy on all Resource sector
Engineering Construction.

Address the demand for additional labour on major resource projects prior to commencement and
recognise the costs incurred by the Construction Industry in training large proportions of this
labour to meet demand.
Approval for construction of Resource Industry infrastructure projects should include requirements for
targeted employment rates of apprentices and trainees which are at least the equivalent of the
Construction Industry.
8.4 Resources Industry

Encourage the Resources Industry to reimburse or contribute to the previously expended cost of
training workers who are recruited from other industries in times of economic growth and skills
shortages

Encourage the Resources Industry to train apprentices and trainees in trade occupations at the
same rate as the Construction Industry

Provide skills gap training for mature-aged workers returning from the Resources sector to
encourage them to seek employment in the Construction Industry

Lobby Government to require project owners to pay the training levy on all Resource sector
Engineering Construction.

Address the demand for additional labour on major resource projects prior to commencement and
recognise the costs incurred by the Construction Industry in training large proportions of this
labour to meet demand

Approval for construction of Resource Industry infrastructure projects should include requirements
for targeted employment rates of apprentices and trainees which are at least the equivalent of the
Construction Industry.
8.5 Migration

Provide assessment of trade skills prior to emigration and have skills gap training and employment
services provided on arrival in Australia. This would enable migrants to be able to enter the
chosen occupation as quickly as possible.

Encourage employers or sub-contractors who employ 457 Visa holders to employ apprentices
equal to the number of Visa holders.
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