Here’s what you should know about the current market and its implications for hiring and workforce planning in the coming year.

Federal Budget 2025: A Boost for Construction and Tradie Upskilling

The Albanese Government has made it clear: construction and skills development are national priorities. In the 2025–26 Federal Budget, several key investments were announced that directly impact our industry:

• 20,000 additional fee-free TAFE places, including 5,000 pre-apprenticeship positions in construction, to be rolled out from January 2025.
• Apprentices entering priority trades (like carpentry, plumbing and electrical) may receive up to $10,000 in financial support to help them get qualified and stay in the industry.
• The ambitious target of building 1.2 million new homes by 2029 under the National Housing Accord will require a major increase in skilled labour across the country.

This is a clear sign that workforce development is no longer just an employer concern; it’s a government-backed national strategy.

Ongoing Skills Shortages: Demand is still outpacing supply

Despite the investment in training, skills shortages remain one of the most pressing issues facing the sector.

• Australia is currently short over 42,000 electricians, and the gap is expected to grow with the country’s shift toward renewable energy.
• Industry forecasts show that nearly 2 million workers will be needed across construction and engineering roles by 2050, a number we’re not currently on track to meet.

What does this mean for employers?

Speed to hire, proactive workforce planning, and competitive candidate offers will be more important than ever.

Innovation in Construction: Faster, Smarter, More Efficient

Government and private developers are embracing technology and innovation to meet housing and infrastructure goals faster.

• NSW is investing in AI-assisted planning approvals (like the DAISY system) to reduce red tape and accelerate build timelines.
• Modular and prefabricated construction is gaining momentum, with $54 million allocated federally to fast-track off-site building solutions, a move that could significantly reduce delays and cost blowouts.

For employers, this shift offers a chance to hire differently, prioritising adaptability and tech-literate trades and engineers who can thrive in a modernised construction environment.

Whether you’re an employer scaling up your workforce or a candidate considering your next move, there’s no better time to act.

How ECR Can Help?

We’ve helped Tier 1 and Tier 2 firms cut time-to-fill in half, secure placements where other agencies couldn’t, and source high-quality candidates across Australia’s biggest rail, road, and infrastructure projects. With a deep understanding of industry trends and a personal, boutique approach, we’re your strategic talent partner.

If you’re looking to build the right team or find your next opportunity in construction and engineering, get in touch with us today.