Construction skills and workforce snapshot

Date:
19 Aug 2026

1 Industry snapshot

Construction skills and workforce snapshot

Workforce overview

Victoria’s third largest employing industry:

  • 349,000 people employed
  • 9.3% of the Victorian workforce.

Top employing jobs in the industry:

  • Carpenters and joiners
  • Plumbers.

Workforce profile

  • Predominantly male and VET qualified workforce
  • Close to two-thirds of the people employed in the industry work in the construction services industry sub-sector
  • Higher proportion of First Nations workforce (0.9% compared to 0.4% statewide)
  • More workers have a VET qualification (53% compared to 30% statewide).

Projections

Victoria’s second highest growing industry:

  • 65,000 new workers expected by 2028
  • Growing at a rate of 4.1% per year to 2028, higher than the state average
  • Around 70% of new workers expected are due to expected growth in the industry.

Top growing jobs in the industry are:

  • Carpenters and joiners, +8,300 new workers expected by 2028
  • Construction managers, +6,300 new workers expected by 2028.

Regional outlook

Regions expecting the highest share of new workers:

  • Melbourne: Western metropolitan Melbourne and Southern metropolitan Melbourne
  • Regional: Barwon and Gippsland.

Skills demand

Top growing jobs in the industry range in skill level requirements:

  • Higher skilled jobs in the industry attract higher annual median earnings.

Most in-demand industry specific skills:

  • General construction and construction labour
  • Contract management.

Skills supply

Popular vocational education and training courses:

  • Certificate III in Carpentry
  • Certificate III in Electrotechnology Electrician.

Popular university study areas:

  • Architecture
  • Building construction management.

2 Introduction

About the construction industry

About these reports

These reports provide a point in time, data-driven overview of the workforce and skills for each industry.

The report does not provide a complete view of workforce dynamics within the industry. Its purpose is to support ongoing efforts to address workforce and skilling demands and to identify opportunities within the construction industry.

Report coverage

This report focuses on the construction industry and the occupations relevant to the industry, categorised using the Australian Bureau of Statistics (ABS) classification of industries (ANZSIC) and occupations (ANZSCO).

Coverage in this report is limited to employment in the industry and sectors as defined by the ABS, noting some occupations are almost exclusively associated with an industry, such as surgeons in the health services sector, while others, such as accountants, are associated with many industries.

Furthermore, industry classifications rarely encompass the full nature of the work (and therefore skills) associated with a given industry. Therefore, ABS definitions of industries or sectors may not align with the definitions used by an industry association.

Key sectors of the industry

The construction industry is responsible for building, altering and maintaining residential, commercial and civil structures and infrastructure.

The key sectors within the construction industry are:

  • Residential building construction – includes construction and renovation of houses, townhouses, apartments and other dwellings
  • Non-residential building construction – includes commercial, industrial, educational and health-related facilities such as offices, schools and hospitals
  • Heavy and civil engineering construction – includes roads, railways, bridges, pipelines, water infrastructure and other large-scale infrastructure projects
  • Construction services – includes specialist services such as site preparation, concreting, bricklaying, plumbing, electrical, painting, glazing, landscaping and demolition.

3 Workforce profile

Construction is Victoria’s third largest employing industry, with a high share of workers with VET qualifications.

Employment

Employment by industry in 2025

  • 349,000 employed1
  • 9.3% Victorian employment share
  • 3rd share rank.

Employment by industry subdivision in 2025

Industry subdivision

Number of workers

Construction services

223,000

Building construction

103,000

Heavy and civil engineering construction

22,500

Workforce profile

Note: Percentages may not add up to exactly 100% due to rounding.

Age distribution in 2021

Age profile – industry

Age

Percentage of workers

15 to 24 years

15%

25 to 49 years

60%

50 years and over

25%

Age profile – all industries

Age

Percentage of workers

15 to 24 years

14%

25 to 49 years

57%

50 years and over

29%

Sex distribution² in 2021

Sex distribution – industry

Sex

Percentage of workers

Female

14%

Male

86%

Sex distribution – all industries

Sex

Percentage of workers

Female

49%

Male

51%

Highest level of education in 2021

Highest level of education – industry

Education

Percentage of workers

VET

53%

Higher education

15%

No post-school qualifications

32%

Highest level of education – all industries

Education

Percentage of workers

VET

30%

Higher education

41%

No post-school qualifications

29%

Workforce diversity

First Nations employment in 2021

Group

Percentage identifying as First Nations

Industry

0.9%

All industries

0.7%

Working age population

0.9%

Speaks a language other than English³ in 2021

Group

Percentage speaking a language other than English at home

Industry

20.3%

All industries

27.4%

Working age population

34.4%

Needs assistance with core activities⁴ in 2021

Group

Percentage needing assistance with core activities

Industry

0.6%

All industries

0.9%

Working age population

3.2%

4 Top employing occupations

Carpenters and joiners is the top employing occupation in the industry, with a mostly full-time employed, VET qualified workforce.

Largest employing occupations within the industry by sex, employed part-time and highest education attainment

Note: Percentages may not add up to exactly 100% due to rounding.

Number employed by sex², ABS Census 2021

Occupation

Number of workers

Percentage male

Percentage female

Carpenters and joiners

31,100

99%

1%

Plumbers

25,000

99%

1%

Construction managers

23,700

92%

8%

Electricians

22,700

98%

2%

Architectural, building and surveying technicians

11,900

89%

11%

Building and plumbing labourers

10,800

97%

3%

Painting trades workers

10,800

94%

6%

Concreters

8,700

99%

1%

Plasterers

6,600

99%

1%

Gardeners

6,500

94%

6%

Percentage working part-time in 2021

Occupation

Percentage working part-time

Carpenters and joiners

14%

Plumbers

10%

Construction managers

13%

Electricians

13%

Architectural, building and surveying technicians

8%

Building and plumbing labourers

24%

Painting trades workers

32%

Concreters

21%

Plasterers

29%

Gardeners

28%

Highest educational attainment in 2021

Occupation

Percentage VET

Percentage higher education

Percentage no post-school qualification

Carpenters and joiners

71%

4%

25%

Plumbers

75%

1%

24%

Construction managers

56%

28%

16%

Electricians

76%

3%

21%

Architectural, building and surveying technicians

63%

21%

16%

Building and plumbing labourers

39%

7%

54%

Painting trades workers

50%

8%

42%

Concreters

38%

3%

59%

Plasterers

50%

4%

46%

Gardeners

53%

9%

38%

5 Workforce projections

The construction industry is projected to have the second largest share of new workers by 2028.

Workforce projections: 3-year and 10-year outlook

Workforce projections – industry

Time period

Employment growth

Retirements

New workers expected5

No.

Share

No.

Share

2025 to 2028

45,300

70%

19,300

30%

65,000

2025 to 2035

89,000

55%

74,000

45%

162,000

Workforce projections – Victoria

Time period

Employment growth

Retirements

New workers expected5

No.

Share

No.

Share

2025 to 2028

143,000

38%

230,000

62%

373,000

2025 to 2035

650,000

45%

804,000

55%

1,454,000

Note: Totals may not sum exactly due to rounding.

New workers expected⁵ by industry subdivision from 2025 to 2028

Industry subdivision

Number of workers

VET

Higher education

No post-school qualifications

Building construction

27,300

52%

21%

27%

Construction services

25,400

56%

9%

35%

Heavy and civil engineering
construction

11,800

40%

30%

30%

Occupations with high new workers expected⁵ with direct TAFE study pathways⁶ from 2025 to 2028

Occupation
(ANZSCO4)

New workers expected5

TAFE pathways into occupation6

Available under Free TAFE7

Carpenters and joiners

8,340

Certificate III in Carpentry

-

Certificate III in Construction Waterproofing

✓

Certificate III in Joinery

-

Construction managers

6,330

Diploma of Building and Construction (Management)

-

Plumbers

4,750

Certificate III in Plumbing

-

Certificate III in Construction Waterproofing

✓

Certificate III in Air Conditioning and Refrigeration

-

Building and plumbing labourers

3,720

Certificate II in Construction Pathways

✓

Certificate II in Civil Construction

-

Painting trades workers

3,120

Certificate III in Painting and Decorating

-

Western metropolitan (within metropolitan Melbourne) and Barwon (within regional Victoria) are expecting the highest share of new workers

New workers expected⁵ for construction, by region⁸, from 2025 to 2028

New workers expected – industry

Employment growth
2025 to 2028

Retirements
2025 to 2028

New workers expected 2028

Share of total new workers expected

Industry

45,300

19,300

65,000

17%

New workers expected – Metropolitan Melbourne

Employment growth
2025 to 2028

Retirements
2025 to 2028

New workers expected 2028

Share of total new workers expected

Metropolitan Melbourne

38,600

14,600

53,000

83%

Western metropolitan

8,900

2,700

11,600

22%

Southern metropolitan

7,700

3,600

11,400

21%

Northern metropolitan

7,200

2,700

9,900

19%

Inner metropolitan

7,200

2,000

9,200

17%

Eastern metropolitan

5,400

2,600

8,000

15%

Inner south-east metropolitan

2,200

1,000

3,200

6%

New workers expected – Regional Victoria

Employment growth
2025 to 2028

Retirements
2025 to 2028

New workers expected 2028

Share of total new workers expected

Regional Victoria

6,600

4,600

11,300

17%

Barwon

2,400

1,100

3,400

30%

Gippsland

920

850

1,800

16%

Central Highlands

1,100

590

1,700

15%

Loddon Campaspe

930

640

1,600

14%

Ovens Murray

450

450

900

8%

Goulburn

330

370

710

6%

Great South Coast

290

290

580

5%

Mallee

170

260

430

4%

Wimmera Southern Mallee

90

140

220

2%

Note: Totals may not sum exactly due to rounding.

  • 83 per cent of new workers expected for the industry will be located within metropolitan Melbourne, with Western metropolitan and Southern metropolitan with the highest share of new workers
  • 17 per cent of new workers expected for the industry will be located within regional Victoria, with Barwon and Gippsland with the highest share of new workers.

6 Top growing occupations

Many top growing jobs in the industry are VET aligned and have strong retention rates.

Occupations with the highest new workers expected within the construction industry

Occupations with highest new workers expected5

New workers expected5
2025 to 2028

Skill level9

Annual median earnings10

Retention rate11

Carpenters and joiners

8,300

3

$87,422

81.6%

Construction managers

6,300

1

$192,447

86.1%

Plumbers

4,700

3

$97,770

86.4%

Building and plumbing labourers

3,700

5

$70,210

70.8%

Painting trades workers

3,100

3

$73,928

75.4%

Architectural, building and surveying technicians

2,900

2

$96,689

85.4%

Electricians

2,600

3

$97,063

89.8%

Civil engineering professionals

2,300

1

$117,728

90.7%

Earthmoving plant operators

2,300

4

$77,412

85.6%

Handypersons

1,900

5

$62,920

75.9%

7 Skills needs

Skills in demand within the industry are evolving, with process improvement and optimisation in growing demand.

Industry-specific skill demand

The most in-demand skills are general construction and construction labour, contract management and occupational health and safety. Communication, initiative and leadership, and personal attributes (e.g. right attitude and mindset) are also important, with 80 per cent of job advertisements within the industry mentioning one or more of these skills.

Most mentioned industry-specific skills in 2024 as a share of job advertisements

Industry-specific skill

Share of job ads

General construction and
construction labour

19.7%

Contract management

19.3%

Occupational health and
safety

19.1%

Procurement

11.9%

Civil and architectural
engineering

10.3%

Auditing

9.0%

Construction management

8.1%

Landscaping and
horticulture

5.8%

Document management

5.4%

Heavy equipment operation

5.4%

Growing skills mentions within the industry

Skills increasingly being mentioned in job advertisements within the construction industry are process improvement and optimisation, heating, ventilation and air conditioning, and communication.

Note: these exclude industry-specific skills already identified as being in high demand.

Growing skills as a percentage point difference in job advertisement mentions from 2019 to 2024

Industry-specific skill

Percentage of job ad mentions in 2019

Percentage of job ad mentions in 2024

Difference

Process improvement and optimisation

5.0%

11.8%

6.9%

Heating, ventilation and air conditioning

0.3%

6.8%

6.5%

Communication

0.9%

6.5%

5.6%

Facility management and maintenance

2.2%

6.3%

4.1%

Business analysis

1.2%

5.3%

4.0%

Construction inspection

2.2%

5.8%

3.6%

General repairs and maintenance

0.0%

3.3%

3.3%

Customer service

0.6%

3.3%

2.7%

Other programming languages

0.0%

2.5%

2.5%

Quality assurance and control

1.6%

4.0%

2.5%

8 Training activity

Popular courses and study areas linked to this industry include the Certificate III in Carpentry (VET) and Architecture (HE).

Government-funded VET courses⁶

The Certificate III in Carpentry, Certificate III in Electrotechnology Electrician and Certificate III in Plumbing are among the most popular VET courses in the industry.

Clicking the link will take you to the Victorian Skills Gateway(opens in a new window), where you can find further information about the course, entry requirements, training providers and financial supports available.

University study areas

Popular university study areas aligned with this industry include architecture, building construction management and project management.

FoE code

Field of education (FoE)

040101

Architecture

040303

Building construction management

080315

Project management

030901

Construction engineering

040307

Building construction economics

040199

Architecture and urban environment, and not elsewhere classified

040305

Building surveying

040301

Building science and technology

030911

Geotechnical engineering

030905

Building services engineering

9 Appendix 1: Data notes

1. Employed: Refers to the estimated number of workers in the industry (working one or more paid hours per week) at the close of the financial year. The estimate is derived using the average of past observations.

2. Sex distribution: In the 2021 Census, respondents could select 1 of 3 options for the sex question: male, female or non-binary sex. Census data is only available for responses recorded as male or female.

3. Speaks a language other than English: Refers to individuals who use a non-English language in their household. The ABS collects this data through the Census.

4. Workers who need assistance with core activities: Are workers with a profound or severe core activity limitation in one or more areas of self-care, mobility and communication.

5. New workers expected: Refers to the estimated number of people needed to enter the workforce in each industry, occupation or region over a specified timeframe. It combines 2 elements:

  • Employment growth – new jobs created as businesses and services expand
  • Retirements – workers aged over 50 who are expected to permanently leave the workforce, based on patterns observed in tax and census data.

This figure shows how many new workers may be needed to both fill new roles and replace people exiting due to retirement. These are projections – informed estimates based on past trends, government policy and population forecasts.

6. TAFE study pathways: Refers to government-funded Vocational Education and Training (VET) courses that upon completion, provide a pathway into occupations.These pathways include courses at the same or lower skill level than the related ANZSCO 4-digit occupation or courses at a higher skill level with no barriers to entry such as prior qualifications or prerequisites. VET course pathways reflect funding as of November 2025 and the courses included in the 2026 Training Needs List. Funding for VET courses is regularly updated and is subject to change.

7. Free TAFE: Refers to Vocational Education and Training (VET) courses for which the Victorian Government provides free tuition for eligible students. The Free TAFE list reflects funding as of November 2025 and courses included in the 2026 Training Needs List. Funding for VET courses is regularly updated and is subject to change.

8. Regions: Are groupings of local government areas (LGAs) that align to the Victorian Government’s regional partnerships and former metropolitan partnerships.

9. Skill level: Reflects the level of educational attainment, training or experience needed to perform an occupation’s tasks. Skill levels:

  • Skill level 1: Occupations typically require a bachelor’s degree or higher.
  • Skill level 2: Occupations typically require an associate degree, Advanced Diploma or Diploma.
  • Skill level 3: Occupations typically require a Certificate III (including apprenticeship) or a Certificate IV.
  • Skill level 4: Occupations typically require a Certificate III (non-apprenticeship pathway) or a Certificate II.
  • Skill level 5: Occupations typically require a Certificate I or compulsory secondary education.

10. Median earnings: Is the estimated annual median earnings of full-time non-managerial employees in a selected occupation across Australia, based on ABS data from May 2023.

11. Retention rate: Measures the proportion of workers who remain in the same occupation from one financial year to the next, based on ATO data from 2021 to 2022.

9 Appendix 2: Data sources

Industry snapshot

Workforce overview

Victorian Skills Authority, Total new workers expected modelling, based on DJSIR employment projections, 2025.

Workforce profile

  • Victorian Skills Authority, Total new workers expected modelling, based on DJSIR employment projections, 2025
  • ABS, Census, Age in five-year groups by sex, ANZSIC1, 2021
  • ABS, Census, Level of highest educational attainment, ANZSIC1, 2021.

Projections

Victorian Skills Authority, Total new workers expected modelling, based on DJSIR employment projections, 2025.

Regional outlook

Victorian Skills Authority, Total new workers expected modelling, based on DJSIR employment projections, 2025.

Skills demand

Lightcast, ANZ Postings, Victorian Skills Authority's analysis, 2024.

Skills supply

  • NCVER, Total VET Activity (TVA) program enrolments, government-funded courses in Victoria, 2015–2023, VOCSTATS
  • Australian Government Department of Education, higher education student enrolment by 6-digit ASCED Field of Education, 2024.

Workforce profile

Employment

Victorian Skills Authority, Total new workers expected modelling, based on DJSIR employment projections, 2025.

Workforce profile

  • ABS, Census, Age in five-year groups by sex, ANZSIC1, 2021
  • ABS, Census, Level of highest educational attainment, ANZSIC1, 2021.

Workforce diversity

  • ABS, Census, Indigenous status ANZSIC1, 2021
  • ABS, Census, Language used at home, ANZSIC1, 2021
  • ABS, Census, Indigenous status ANZSIC1, 2021.

Top employing occupations

  • ABS, Census, Age in five-year groups by sex, ANZSIC1, 2021
  • ABS, Census, Industry of employment and labour force status by state, ANZSIC1, ANZSCO4, 2021
  • ABS, Census, Level of highest educational attainment, ANZSIC1, 2021.

Workforce projections

  • Victorian Skills Authority, Total new workers expected modelling, based on DJSIR employment projections, 2025.

Top growing occupations

Employment

Victorian Skills Authority, Total new workers expected modelling, based on DJSIR employment projections, 2025.

Skill level

ABS, Census, Occupation skill level (OCSKP), ANZSCO4, 2021.

Annual median earnings

ABS, Survey of employee earnings and hours, May 2023.

Retention rate

Australian Taxation Office, Occupation transition 2010 to 2011 to 2021 to 2022 income years.

Skills needs

  • Lightcast, ANZ Postings, Victorian Skills Authority's analysis, 2024 and 2019 to 2024.

Training activity

  • NCVER, Total VET Activity (TVA) program enrolments, government-funded courses in Victoria, 2015 to 2023, VOCSTATS
  • Australian Government Department of Education, higher education student enrolment by 6-digit ASCED Field of Education, 2024.