Queensland suffers construction worker shortage, ahead of 2032 Olympics and Paralympics

The state's building sector is set to fall more than 19,000 skilled workers short each year as demand surges ahead of the Brisbane 2032 Olympics and Paralympic Games. Analysis from Construction Skills Queensland forecasts the shortfall will peak at 35,000 workers in 2027–28, when labour demand is expected to rise by 17% as building activity reaches its high point. CSQ chief executive Kim Hetherington said population growth, the energy transition and Games-related infrastructure were all intensifying pressure on the industry.

Governments have committed AUS $7.1 billion (€4.4bn) towards Games infrastructure, including a 63,000-seat stadium at Victoria Park, but CSQ estimates total construction tied to the event will reach $11.2bn (€6.9bn) once athletes' villages and precinct works are included. Deputy Premier Jarrod Bleijie has previously said the $7.1 billion (€4.3bn) allocation does not cover transport infrastructure, precincts or athlete villages. Hetherington warned that failing to address workforce shortages could delay major projects and drive up costs. "The challenge we've got is the projects for the Games … they can't be shifted," she said. "So, there's a hard deadline on those."

Housing and Public Works Minister Sam O'Connor said the government had been clear about its funding limits, while Treasurer David Janetzki reiterated that projects must be delivered "on time and on budget". "We've been clear that projects are to be delivered on time and on budget, and the deputy premier has been very clear about that," he added.

"We've got the $7.1 billion (€4.3bn) funding envelope for the Games. We've returned productivity to Queensland work sites." Janetzki acknowledged a growing 'war for talent' but said progress was being made. "We are seeing the green shoots," he said.

The report highlights ongoing hiring challenges, with more than 5,600 construction vacancies recorded in November last year, a 40% increase compared to five years earlier. "Without a stronger pipeline of workers entering the industry, the risk of project delays and rising delivery costs will increase, placing further pressure on an already stretched construction sector," the report warned.

Despite this, Master Builders Queensland Chief Executive Paul Bidwell said the sector remained 'cautiously optimistic' about delivering the pipeline of work. However, he noted uncertainty remained. "It begs the question about whether something has to give and … we really won't know what that looks like until we almost get there," he said. He agreed construction costs were likely to rise, with projects in the pipeline averaging $69bn (€42.1bn) annually and peaking at $75bn (€45.8bn) in 2027–28.

This is the second Horizon 2032 report released by CSQ. While last year's forecast predicted a larger shortfall of 50,000 workers in 2026–27, Ms Hetherington said the updated figures reflect a 'split' peak, with building demand cresting in 2027–28 and engineering demand following in 2030–31, rather than any improvement in workforce supply.

The report also points to a shrinking pipeline of apprentices. Commencements in 2024–25 are down about 30% from their 2021-22 peak of 15,800, and around 7,000 apprentices are leaving the system each year. Bidwell said retention was a major concern, alongside longstanding structural issues. "That's been at play for a long time," he said. "There's a lot of work going on to demonstrate how good those jobs are."

Industry groups say solutions include boosting apprenticeships, attracting interstate and overseas workers, and increasing participation among women and under-represented groups. The state government has introduced a $19 million (€17.48m) apprenticeship subsidy, which Bidwell said had seen 'reasonable' uptake, and is also looking at measures such as mutual licensing recognition to make it easier for interstate tradespeople to relocate.

O'Connor said recent policy changes, including scrapping Best Practice Industry Conditions and reforming procurement, had already delivered savings. Deputy Premier Bleijie has previously said the state would "beg, borrow and steal" workers if necessary to meet Games deadlines.