Skilled labour demand to rise when construction picks up, HIA says

Australia's Housing Industry Association recently announced that although demand for people with skilled trades is currently lower than the historical average, this is expected to rise once the construction sector as a whole finds its footing again.

However, this shouldn't be too far in the future. New home building is on the rise, after reaching some of the lowest levels in decades in recent years.

"The persistence in 2013 of a credit constrained environment for residential construction isn’t helping, nor is an onerous regulatory and taxation framework," said HIA Senior Economist Shane Garett.

"Any moves to increase regulatory costs further from the pre-existing high and inefficient base would considerably hamper the prospects of a recovery in residential construction."

The group concluded that as soon as the residential construction industry emerges from its current slump, the waning demand for skilled labour will likely pick up immediately.

HIA's Trade Availability Index increased to 0.24 in June, up from 0.19 in March, marking a modest increase in demand for skilled tradies. However, this remains lower than the historical average for the index.