This study examines long term changes in the industrial and workforce structure of the Australian construction industry and their effect on the capacity of the industry to invest in training. The study finds that restructuring has raised the barriers to employer investment in vocational training and is the principal cause of sustained skill shortages in the industry. Using the 1986 and 2001 Population Censuses and economic and labour force surveys, it examines the significant changes in the occupational, industry, firm size, educational attainment and demographic structure of employment in the industry that have occurred over the last two decades. The major drivers of change include: new technologies; evolving consumer tastes; an intensification of sub-contracting through the intra-industry division of labour; outsourcing of activities through the inter-industry division of labour; and reduced role of the public sector in the industry. The study also finds evidence that a large proportion of sub-trade vacancies are filled by qualified tradespersons. This finding has important implications for current strategies to address trade skills shortages. It is concluded that changes in industry and workforce structure which exacerbate the lack of employer investment in training are creating an industry which does not have the skilled people required to meet demands. © 2006, University of New South Wales. All rights reserved.
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