Master Builders Australia (MBA) has released its Future of the Workforce report, which forecasts the building and construction industry needing 130,000 additional workers this year to overcome workforce shortages.

This shortfall is on top of those required for natural attrition and requires federal and state governments to prioritise reforms that will attract and retain more workers.

“While it is a significant number, this presents an opportunity for growth in an industry that is pivotal to the nation’s economic success,” MBA chief executive Denita Wawn says.

The report looks closer at the industry’s current state and the impact of chronic workforce shortages and recommends sensible policy measures to relieve the pressure.

As the country’s second-largest industry employer, one in 11 Australians works in building and construction, but the number of people joining the industry each year isn’t enough to keep up with demand.

Productivity has fallen 18% over the previous decade, putting enormous strain on workers and firms. Despite challenges, Denita says the sector is uniquely positioned to develop and innovate.

“There’s no quick fix to the critical workforce shortages, it will require a holistic approach across federal government portfolios from migration, skills and training through to industrial relations,” she says.

“Proposed solutions include increasing trade apprenticeships, leveraging skilled migration from similar regions and fostering a diverse, inclusive culture to attract new talent from across the economy.”