Labour Market Research –Construction Trades

TasmaniaSeptember 2017

Labour Economics Office Tasmania

Department of Jobs and Small BusinessPage 1

Occupations in Cluster / Rating
3311-11 / Bricklayer / Shortage
3311-12 / Stonemason / Shortage*
3312 / Carpenters and Joiners / Recruitment Difficulty
3322-11 / Painting Trades Worker / No Shortage
3331-11 / Glazier / Shortage*
3332-11 / Fibrous Plasterer / No Shortage
3332-12 / Solid Plasterer / Not assessed
3333-11 / Roof Tiler / Shortage*
3334-11 / Wall and Floor Tiler / Shortage*
3341 / Plumbers / Shortage
3941-11 / Cabinetmaker / Cannot Rate

* Occupation(s) assessed at the national level, separate rating not available for state/territory.

Key issues

  • Employers in Tasmania are experiencing shortages across many occupations in construction trades.
  • Research indicates there is no current shortage in the painting trades workers and fibrous plasterer occupations at a state level.
  • Demand for construction trades continues to be evident in Tasmania, driven by strong building activity in Southern Tasmania. A number of employers surveyedreported that demand is high for qualified tradespeople.

Figure 1: Proportion of vacancies filled (%), average number of applicants and suitable applicants per vacancy (no), Construction trades, Tasmania 2017

Source: Survey of Employers who have Recently Advertised. Note: Occupational coverage varies over time series.

Survey results[1]

  • The Survey of Employers who have Recently Advertised found that an average of 55 per cent of construction trades worker vacancies advertised in 2017 were filled.While this was similar to the result of 54 per cent in 2016 it is below the 2014 result of 93 per cent.
  • Painting trade workers recorded the highest proportion of vacancies filled (100 per cent) while plumbers recorded the lowest (36 per cent).
  • A number of employers in Tasmania reported difficulty recruiting carpenters and joiners in regional areas, or difficulty recruiting carpenters and joiners with specific skills or experience in metropolitan areas.
  • Employers’ recruitment experiences were different around Tasmania, and the survey found67 percent of vacancies in regional areas were filled, whereas 47 per cent were filled inmetropolitan areas.
  • Just over half (51 per cent) of employers had unfilled vacancies, with just over a quarter (26 per cent) of all employers reporting they did not have any applicants for their vacancies.
  • Vacancies in the construction tradesattracted an average of 4.1 applicants per vacancy.
  • The number of applicants per vacancy differed considerably across the occupations, ranging from an average of 1.0 for bricklayers to 7.6 for carpenters and joiners.
  • The majority (90 per cent)of vacancies required qualifications and employers received an average of 1.6[2] qualified applicants per vacancy.
  • On average, employers considered less than one applicant (0.8) per vacancy to be suitable. This was a similar result to 2016, but below the 2014 result of 1.8 applicant per vacancy.
  • The proportion of employers who had no suitable applicants was 41 per cent.

Figure 2.Proportion of vacancies filled (%), average number of applicants and suitable applicants per vacancy (no.),Construction trades, Tasmania, 2017

Source: Survey of Employers who have Recently Advertised

Unsuitable applicants

  • Of the occupations assessedin Tasmania just over half (53 per cent) of qualified construction trade applicants were considered to be unsuitable.
  • The main reasons employers reportedapplicants to be unsuitable were due to not holding the required qualification, ornot having the level of experience orskills needed in particular areas,for example in modern commercial construction.

Other reasons employers considered applicants unsuitable were due to remuneration issues, poor reference checks, work history, or because applicants were not the ‘right fit’ for the business.

Demand and supply trends

  • Employment of workers in the construction Industry rose by 13.1 per cent over the year to August 2017 (compared with a growth of 7.8 per cent at the national level over the same period)[3]. Additionally, over the ten years to August 2017, employment in the Tasmanian construction industry increased by 30.5 per cent.[4]
  • The value of building work done in Tasmania decreased 1.1 per cent over the year to June 2017 but increased by 23.7 per cent over the four years to that date. Building activity, however, remains below the recent peak of June 2010.[5]
  • Construction industry employment in Tasmania is projected to grow by 6.0 per cent over the five years to May 2022 compared with 5.6 per cent for all industries.[6]
  • Formal entry-level training for the construction trade occupations mainly comes from the apprenticeship system through the delivery of a relevant Certificate III course.
  • In the twelve months endingJune 2017, the number of construction trades workers completing an apprenticeship or traineeship in Tasmania was lowest in the past ten years.
  • The June 2017 completionswere5.3 per cent lower than June 2016, 45.7 per cent lower than June 2012.[7]

Other indicators and issues

  • There are a number of government and commercial activities that may be driving demand in the construction and building industry[8]:
  • The Launceston City Deal was signed by the Australian Government, Tasmanian Government and City of Launceston on 20 April 2017. The Launceston City Deal is a five-year plan (from 2017 to 2022) that is expected to drive activity in the construction sector in northernTasmania.[9]
  • The Tasmanian Government extended the First Home Owner Grant from 1 July 2017 to30 June 2018 and has also made changes to stamp duty for first home builders, which is likely tosupport additional building activity in the state.[10]
  • Tasmania is progressing towards a more streamlined state-wide Planning Scheme, removing the need for council permits for a number of building and renovation projects.[11]
  • There are currently a number of incentives for businesses hiring apprentices in Tasmania, including the Skills Tasmania travel and accommodation allowances; and the Tasmanian Department of State Growth Small Business Grant to support apprentices and trainees program (introduced in July2017). These initiatives are aimed at increasing the number of apprentices and trainees employed in Tasmania including within the Building and Construction sector.[12]

Labour Economics Office Tasmania

Department of Jobs and Small BusinessPage 1

[1]The methodology underpinning this research is outlined at Skill Shortage Research Methodology | Department of Jobs and Small Business - Document library, Australian Governmentand can also be accessed by the QR code.

[2]Note: there is a break in the time series of the average number of qualified applicants per vacancy at July 2017 due to a change in the methodology

[3]Note: The Australian Bureau of Statistics (ABS) website advises that these estimates are subject to considerable sampling variability.

[4]Australian Bureau of Statistics, Labour Force, August 2017, Department of Jobs and Small Business trend data.

[5]Australian Bureau of Statistics Building Activity, Australia, (Cat No. 8752), March 2016, chain volume measures, trend

[6]Department of Jobs and Small Business, 2017 Regional Projections to May 2022

[7]National Centre for Vocational Education Research, National Apprentice and Trainee Collection, June 2017 estimates, unpublished

[8] Tasmanian Building and Construction Industry Training Board, 2017 State of the Industry Report, Business Activity and Training in the Tasmanian Construction Industry, URL:

[9] Australian Government Department of Prime Minister and Cabinet, Smart Cities Plan - The Launceston City Deal

[10] Tasmanian Government Department of Treasury and Finance, First Home Owner Grant, September 2017

[11] Tasmanian Government Department of Justice, Consumer, Building and Occupational Services, July 2017

[12] Tasmanian Government Skills Tasmania, Incentives and subsidies for apprentices, trainees and their employers, September2017