The Labour Market for Construction Trades Workers
New South Wales
September 2014
Occupations in cluster
Rating
331111
Bricklayer
Shortage
331112
Stonemason
Shortage*
3312
Carpenters and Joiners
Metropolitan shortage
332211
Painting Trades Worker
Regional shortage
333111
Glazier
Regional shortage*
333211
Fibrous Plasterer
Regional shortage
333212
Solid Plasterer
Shortage*
333311
Roof Tiler
Shortage*
333411
Wall and Floor Tiler
Shortage*
3341
Plumbers
Shortage
394111
Cabinetmaker
Shortage
* Occupation(s) assessed at the national level, separate rating not available for NSW
Key issues
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Demand for the construction trades over the past year has benefited from strong building activity in
NSW. This has more than offset a decline in the engineering construction sector which employs
fewer workers in the trades under review.
New supply of construction trades workers from apprenticeship completions increased by 45 per in
2013-14 and was 50 per cent above the average of the previous ten years.
Over the past three years net immigration of construction trades workers from overseas to NSW has
been a minor supply source in comparison with apprenticeship completions.
As a result of the increase in demand, all of the construction trades occupations under review were
in shortage in 2014 on either a national, state, metropolitan or regional basis.
Survey results
ISSN 2203-4765
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The Department of Employment Survey of Employers who have Recently Advertised (SERA) found
that 54 per cent of construction trades worker vacancies advertised over the survey period in 2014
were filled.
o This was marginally above the result in 2013 (51 per cent filled) but well below the figure for
2009 (81 per cent filled).
The average number of applicants per vacancy has fallen significantly in recent years: from 10 in
2011 to 4.1 in 2014. The number of suitable applicants per vacancy has declined from 1.4 to 0.8
over the same period.
Labour Economics Office New South Wales
Department of Employment
Page 1
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In 2014 all the construction trades under review were in shortage on either a metropolitan,
regional, NSW or national basis. In 2012 only four of the eleven trades assessed by this department
experienced shortages.
Bricklayer is in shortage in Sydney and regional NSW.
o Unfilled vacancies were distributed across various suburbs of Sydney and regional locations
including the Hunter, Central Western NSW and the Southern Tablelands, and involved work in
a range of sectors including new housing, general commercial building and high rise residential
and commercial building.
o While a minority of employers were able to fill their vacancies with little difficulty, even in
these instances some bricklayers left the employer after a short period for work at higher pay
or a more convenient location or with different working arrangements (for example, as a
subcontractor rather than an employee on wages).
Figure 1: Construction trades workers, NSW, proportion of vacancies filled (%) and average
number of applicants per vacancy and suitable applicants per vacancy, 2009 to 2014
100
20
90
18
Proportion of Vacancies Filled - LHS
80
16
70
14
60
12
(%) 50
10 (no.)
8
40
Applicants per Vacancy - RHS
30
20
6
4
Suitable Applicants per Vacancy - RHS
10
2
0
0
2009
2010
2011
2012
2013
2014
Source: Department of Employment, Survey of Employers who have Recently Advertised
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For carpenters and joiners, Sydney employers filled a lower proportion of vacancies than their
regional counterparts (37 per cent filled and 79 per cent filled respectively).
o Unfilled and hard-to-fill metropolitan vacancies were distributed across various skill sets
including general carpentry, maintenance, home extension and renovation work, the
manufacture and installation of quality joinery, fit-out work and making and installing
staircases.
o In contrast, a large majority of employers across the Illawarra, Hunter and Southern Tablelands
were able to fill their vacancies. Vacancies were filled across various skill sets and industry
sectors including maintenance, frame work, engineering carpentry and new project homes.
Employers seeking trade-level painters had less success in regional NSW than in Sydney.
Labour Economics Office New South Wales
Department of Employment
Page 2
o
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More than 40 per cent of regional vacancies remained unfilled at the time of the survey.
Unfilled vacancies were distributed across a number of regional areas in both the domestic and
commercial sectors. While all regional vacancies attracted at least one qualified applicant, in
some cases they did not demonstrate sufficient skills or reliability when trialled.
o Sydney-based employers, on the other hand, were generally able to fill vacancies with little
difficulty across various suburbs and industry sectors. While a minority were unable to fill their
vacancies, all advertisements attracted interest from qualified applicants, and the overall result
did not indicate a shortage of painters in Sydney.
A regional shortage was also evident for fibrous plasterer.
o Sydney-based employers had more success in filling vacancies than their regional counterparts
(86 per cent filled compared with 40 per cent).
o While a minority of regional employers filled their vacancies without difficulty, the majority of
vacancies remained unfilled at the end of the survey period.
o Unfilled and hard-to-fill vacancies were distributed across various regions including the Hunter,
New England and the Riverina in both the residential and commercial sectors.
o In some cases prominent advertising did not attract a single qualified applicant.
Shortages of plumbers were widespread across Sydney and regional NSW.
o Sydney employers had slightly more success in filling vacancies than their regional
counterparts (56 per cent filled compared with 44 per cent).
o There was an overall average of less than two qualified applicants per vacancy, of which an
average of less than one applicant per vacancy was considered suitable by employers.
o About 40 per cent of employers seeking general plumbers were unable to fill their vacancies.
Unfilled vacancies were particularly evident for maintenance plumbers but were also scattered
across other sectors such as new construction and general commercial work.
o Employers had even less success in filling vacancies for roof plumbers, with 60 per cent of
vacancies remaining unfilled. Roof plumber vacancies proved particularly difficult to fill in
regional NSW with no surveyed employer able to recruit a suitable applicant.
With only 38 per cent of vacancies filled, employers seeking cabinetmakers had the second-lowest
success rate among the trades under review. (The lowest was roof tiler with 31 per cent of
vacancies filled nationally.)
o About 30 per cent of employers did not attract a qualified cabinetmaker through advertising.
o There were shortages in various industry sectors including the manufacture and installation of
kitchens, wardrobes and high-quality residential and commercial furniture.
o Unfilled vacancies were distributed across various suburbs of Sydney and in regional NSW.
Unsuitable applicants
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A large majority of employers surveyed were seeking tradespersons with formal qualifications in the
relevant trade.
o Over 40 per cent of employers also specified additional requirements such as the possession of
transport and tools, an ABN or additional licences and certificates.
Labour Economics Office New South Wales
Department of Employment
Page 3
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The most common reasons for the unsuitability of applicants were that they were unqualified, they
lacked sufficient skills or experience, or they were considered unreliable (often on the basis of their
failure to present for a work trial).
o A majority of employers initially screened applicants on the basis of the pay rate they were
seeking or the distance they would have to travel to work. In most cases, these employers did
not assess whether these applicants had suitable skills.
Demand and supply trends
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Demand for the construction trades over the past year has benefited from strong building activity in
NSW. This more than offset a decline in the engineering construction sector, which employs fewer
workers in the trades under review.
o The value of building work done grew by 11 per cent in the year to June 2014 following growth
of nine per cent in the previous year.1
o Growth in 2013-14 was especially driven by new construction of apartments (up 19 per cent
over the year) and non-residential building (up 16 per cent).
o The value of housing construction grew by one per cent, following growth of seven per cent
the previous year.
o Engineering construction fell by six per cent in 2013-14.
The Internet Vacancy Index (IVI) for construction trades in NSW increased by 51 per cent in trend
terms over the year to September 2014.2
o The index level of 137.4 in September 2014 was the highest since the series began in January
2006.
New supply of construction trades workers, including cabinetmakers, from apprenticeship
completions increased by 45 per cent to just over 3900 in 2013-14.3
o Completions were about 50 per cent above the average for the previous ten years.
Net immigration of construction trades workers to NSW from overseas declined from about 520 in
2011-12 to about 350 in 2013-14. Net immigration is a minor supply source relative to
apprenticeship completions.4
o Department of Employment projections suggest that completions will fall in the next two years
to a level closer to the average for the previous five years.
1
ABS Catalogue 8755.0, annual totals of work done, preliminary, original data, chain volume measures.
Department of Employment, Internet Vacancy Index.
3
NSW Department of Education and Communities, apprenticeship approvals and completions data.
4
Department of Immigration and Border Protection, overseas arrivals and departures, net permanent and long term
movement by ANZSCO unit group.
2
Labour Economics Office New South Wales
Department of Employment
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