The Housing Industry Association (HIA) is urging the construction industry in Australia to address a looming skills shortage that is affecting the sector. 

HIA says the industry faces a shortage of 59,400 construction workers in this financial year, and warns that the gap is set to jump almost 65,000 by 2013.

“Apprentice commencement and completion rates have consistently declined over the past decade. Almost 60% of apprentices in key trades cancel within the first two years,” pointed out HIA managing director Shane Goodwin. 

“Furthermore, 40% of tradespeople have no formal qualifications and acquire their skills on-the-job because the formal training system doesn’t meet industry needs,” he added.

Just in the past year, over 4000 apprentices have been laid off in the construction sector across Australia.

Goodwin also pointed out that it is important that the industry addresses this issue by investing in apprentices and presenting itself as a viable career option for Australians.

New South Wales is the state facing the deepest shortage, with an expected shortfall of 34,000 trades this financial year.