Long run shifts in the industry and workforce structure of the Australian construction industry : implications for a sustainable labour supply

This study examines long run changes in the industry and workforce structure of the Australian construction industry. The major focus of the study is on-site vocational occupations in the industry and the way in which changes in industry and workforce structure are affecting the adequacy of labour supply. The primary data sources are the 1986 and 2001 Population Censuses and economic and labour force surveys. The principal variables examined are changes in the occupational, industry, educational attainment and demographic structure of employment in the industry. There was significant change in all four variables over the last two decades. The major drivers of this change include the intensification of sub-contracting through the intra-industry division of labour, outsourcing of activities through the inter-industry division of labour and new technologies and evolving consumer tastes. Another driver of change identified was the increasing 'educational segmentation' within and across occupations in the industry. There was a large, though relatively static share of occupations with no qualifications, but a rising share of persons with post-Certificate qualifications even within the same occupation. The study finds that a combination of changes in industry structure and demographic trends suggests that vocational skills shortages in constuction are unlikely to improve in the medium term.