Quick answer
Australia's unemployment rate rose to 4.7% in September 2026 (ABS, released 15 October 2026), but Master Builders Australia says the building workforce is still 141,000 skilled workers short, a gap that could reach 935,600 by 2035 if nothing changes. A softer job market may bring more general labourers, but skilled and ticketed trades remain hard to find in VIC, QLD and NSW, so builders should book key trades early and keep a flexible labour plan.
Australia's jobless rate is drifting up, and it is tempting to think that should make it easier to find people for site. Master Builders Australia's read of the latest ABS figures says otherwise: the general labour market is softening, but the building workforce is still short of skilled people. Here is what the September 2026 numbers say, why they don't translate into easy hiring for builders, and what to do about it in Victoria, Queensland and New South Wales.
What did the September 2026 labour force figures show?
The ABS Labour Force release on 15 October 2026 showed unemployment rising to 4.7% (seasonally adjusted), up 0.1 percentage points on August. Employment fell by about 39,300 people and the participation rate eased to 66.8%. Underemployment ticked up to 6.3%.
In its response the same day, Master Builders Australia noted that construction employment fell 0.4% over the month, but said the building and construction labour pool remains tight and that shortages are holding back housing as well as non-residential and civil work.
| Measure | Figure | Source |
|---|---|---|
| Unemployment rate, Sep 2026 (seasonally adjusted) | 4.7% (up 0.1 pts) | ABS |
| Change in employed people, Sep 2026 | About −39,300 | ABS |
| Participation rate | 66.8% (down 0.2 pts) | ABS |
| Construction employment, month to Sep 2026 | Down 0.4% | Master Builders Australia |
| Current skilled construction worker shortfall | 141,000 | Master Builders Australia |
| Projected shortfall by 2035 if nothing changes | 935,600 | Master Builders Australia |
| Construction activity at risk | Up to $242 billion | Master Builders Australia |
| Underused skilled migrants already in Australia | 18,400 | Master Builders Australia |
If unemployment is rising, why is it still hard to find tradies?
Because the people losing work are mostly not the people builders are looking for. A higher national jobless rate doesn't create qualified carpenters, formworkers, steel fixers or ticketed plant operators. Those skills take years of training, and Master Builders puts the current gap at 141,000 skilled construction workers.
Master Builders Acting CEO Melissa Byrne summed it up: "Tradies are working hard, but there simply isn't enough of them to go around."
For builders, that means two things can be true at once. You may get more applicants for general labouring roles as the wider market softens, while skilled and ticketed trades stay hard to secure. The small monthly fall in construction employment is worth watching, but one month is not a trend, and it doesn't change the size of the skills gap.
What is being proposed to fix the shortage?
Master Builders welcomed commitments from both the Government and the Opposition to prioritise construction in the skilled migration system, and said they now need concrete reforms behind them. Its list includes:
- A dedicated construction skills pathway in the migration system.
- Expanding the Pacific Australia Labour Mobility (PALM) scheme to non-licensed construction roles.
- Removing or reducing the Skilling Australia Fund levy.
- An international apprenticeship pathway and faster skills recognition.
- A National Skills Activation Program to get the 18,400 underused skilled migrants already here into the workforce.
- Stronger incentives for Australians to take up a trade, and adoption of the 32 recommendations in its Workforce Blueprint.
None of these will add workers to your site this summer. Even if they are adopted, new migrants and apprentices take time to arrive and get up to speed, so it is safer to plan as if the current shortage will run well into 2027.
What does this mean for builders in Victoria, Queensland and NSW?
The national shortage plays out differently in each state, and there are local changes worth knowing about.
- Victoria. The Department of Transport and Planning has been consulting on a framework to register carpentry subcontractors and license employed carpenters. Both HIA and Master Builders Victoria lodged submissions opposing the proposal as drafted, with HIA warning it could push experienced tradespeople out of the industry. No start date has been set, but Victorian builders who rely on carpenters should keep an eye on where it lands.
- Queensland. Master Builders Queensland on 15 October 2026 backed recent changes to the state's industrial relations laws and WorkCover scheme, including fit-and-proper tests and right of entry compliance for union officials, and stronger claims and return-to-work management. It said the WorkCover changes could avoid more than $1.46 billion a year in premium increases. With Queensland's pipeline as large as it is, demand for trades there is not easing.
- New South Wales. The NSW Government opened the $1.2 billion Badu Yarragul Water Resource Recovery Facility at Kemps Creek on 7 October 2026. It enables wastewater services for more than 140,000 new homes and businesses around the Western Sydney Aerotropolis and Bradfield, which means more civil, subdivision and housing work in Western Sydney as land is serviced.
What should builders do now?
- Lock in your skilled trades early. If a stage needs carpenters, formworkers or ticketed operators in the new year, start lining them up now rather than a week out. The scarcer the trade, the more notice helps.
- Split your crew into core and flex. Keep a core of trusted direct hires and use labour hire for peaks, catch-up work and absence cover, so you aren't carrying wages through quiet weeks.
- Be specific about tickets and experience. A clear brief (trade, tickets, years on similar sites, start time and expected duration) is the quickest way to get the right person rather than just a person.
- Budget realistically. While supply stays tight, skilled and ticketed trades will keep commanding higher charge rates than general labour. Our 2026 labour hire rates guide sets out indicative rates by trade.
- Check your provider is licensed. Victoria and Queensland both run labour hire licensing schemes, so check any provider's licence before booking. Dash Group is licensed under the Labour Hire Licensing Act 2018 (Vic) and the Labour Hire Licensing Act 2017 (Qld).
How can labour hire help when trades are scarce?
Labour hire won't create tradespeople the industry doesn't have, and we won't pretend otherwise. What it can do is widen your reach and save your site team time. Dash Group has made more than 23,400 temporary placements for more than 400 businesses. Only about 3 in 10 people who apply to our job ads pass our screening and vetting, so the people we put forward have already been checked against the role.
Each client has one dedicated consultant, and our in-house payroll team handles wages, super and award compliance. When one of your own workers calls in sick, we can often have a replacement on site within 2–4 hours.
We supply general labourers, skilled and ticketed workers, carpenters, formwork, steel and concrete crews, electricians, shopfitters and civil crews from offices in Melbourne (also covering Sydney and NSW), Brisbane and the Gold Coast.
Frequently asked questions
Does rising unemployment make it easier to hire construction workers?
Only partly. The national unemployment rate rose to 4.7% in September 2026, which may mean more applicants for general labouring roles. But Master Builders Australia says construction is still about 141,000 skilled workers short, so qualified and ticketed trades remain hard to secure.
How many construction workers is Australia short?
Master Builders Australia estimates the industry is about 141,000 skilled construction workers short today, and that the shortfall could reach 935,600 by 2035 if nothing changes, putting up to $242 billion of housing and infrastructure work at risk.
Did construction employment fall in September 2026?
Master Builders Australia, responding to the ABS Labour Force release on 15 October 2026, said construction employment fell 0.4% over the month. It said the building labour pool nonetheless remains tight.
How quickly can Dash Group supply workers?
When one of your own workers calls in sick, Dash Group can often have a replacement on site within 2 to 4 hours. For skilled trades and longer bookings, giving more notice gives you the widest choice of workers.
Sources: Master Builders Australia, “Unemployment up, but building workforce remains tight” (15 October 2026); ABS, “Unemployment rate at 4.7% in September” (15 October 2026) and Labour Force, Australia, September 2026; Master Builders Victoria, “Implementing Carpentry Registration and Licensing” (16 October 2026); HIA submission on the Implementing Carpentry Registration and Licensing Consultation Paper (October 2026); Master Builders Queensland, “Reforms set strong foundation for safer, more productive worksites and businesses” (15 October 2026); NSW Government release on the Badu Yarragul Water Resource Recovery Facility (7 October 2026), via The National Tribune and Build Australia; Dash Group company information (October 2026). Dash Group is not affiliated with or endorsed by any of the organisations cited.