Why Aussie small builders are refusing new apprentices

1 day ago 5

Small builders warn Australia’s housing targets will be impossible to meet if the industry cannot afford to train the next generation of tradies.

Australia’s housing shortage is set to deepen as small builders warn hiring and training apprentices has become too great a financial risk.

JV Built director Jake Vella said taking on a full-time trainee in the current market was a major gamble for independent operators.

“For me right now, in the current market, it is probably a bit too risky,” Mr Vella said.
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“If you take on an apprentice, they are full-time. You have to keep them busy every day, and with the market the way it is, that can be hard.

“If the work slows down, you still have to pay them even if they are at home. That is the main reason I do not have one at the moment.

“For small businesses, it is a big commitment.”

JV Built director Jake Vella says hiring an apprentice has become too risky while renovation work slows and costs keep rising. Picture: Instagram/jakevella.

Drone Aerial view of Suburban federation residential house in Sydney NSW Australia

Residential builders say high interest rates and cost pressures are causing homeowners to delay renovation work. Picture: iStock.

The Melbourne builder said residential construction had quietened as homeowners held back on renovation work amid higher interest rates and cost pressures.

“People are keeping their money in their pockets, especially when it comes to renovation work,” Mr Vella said.

“That obviously flows through to tradies and small builders as well.”

Australian Securities and Investments Commission insolvency data shows construction accounted for 24 per cent of companies entering external administration in the first eight months of 2025-26, making it the nation’s hardest-hit industry.

It follows latest Australian Bureau of Statistics data released in April showing that the nation is currently running at a 21,000 tradie shortage.

The figures have fuelled concern skilled workers needed to build Australia’s future homes could leave the sector before new apprentices are trained.

JV Built director Jake Vella said good tradespeople have become “like unicorns” as skilled workers are pulled into better-paid sectors. Picture: Instagram/jakevella

Mr Vella said good trades were already difficult to find, with skilled workers increasingly being pulled into mining, civil work, infrastructure and other sectors offering better pay or more security.

“Good tradespeople are hard to find. They are like unicorns,” he said.

“I have just got back from Ballarat. I am Melbourne-based, but I was taken up to Ballarat and they paid for my accommodation because they needed workers there.

“They were willing to pay good money just to get me up there because they could not find enough people locally.”

JV Built director Jake Vella said small builders want to train apprentices, but need more support to make it financially viable. Picture: Instagram/jakevella

Construction remains one of Australia’s hardest-hit industries for insolvencies, raising fears about the future trade workforce. Picture: NewsWire/ David Crosling

He said the shortage was already hitting homeowners trying to build, renovate or get smaller jobs done.

“There are not enough tradies,” Mr Vella said.

“That means homeowners can struggle to get smaller jobs done, and wait times can blow out because the good trades are already booked.”

Mr Vella said small businesses were often best placed to train the next generation of tradies, but needed more support to make it viable.

“Small businesses are the ones that can train the next generation, but they need support to do it,” he said.

“At the moment, for a small operator, it can be a real risk. You want to help train people and bring new workers into the trade, but you also have to make sure your own business survives.”

JV Built director Jake Vella said Australia cannot hit its housing targets without keeping skilled tradies in business and training apprentices. Picture: Instagram/jakevella

Mr Vella said Australia’s housing targets would be impossible to meet without keeping experienced tradies in business and training the next generation.

“You need skilled tradespeople to do that work. You cannot hit those housing targets without them,” Mr Vella said.

“If the industry cannot keep good tradesmen in business, and cannot bring through the next generation, there is no way the homes get built.”

Future Property Group founder and managing director David Cummins says apprentice cuts now could worsen housing delays within three to five years.

Future Property Group founder and managing director David Cummins said displaced tradies had several pathways out of residential building, including infrastructure, maintenance, mining and energy.

But Mr Cummins warned losing workers from housing construction would strip the industry of years of knowledge and experience, while apprentice cuts could create a bigger workforce crisis within three to five years.

He said apprentices were especially vulnerable if employers cut them halfway through their training.

“If they lose their position halfway through, it can be quite disruptive,” Mr Cummins said.

“Some trades themselves would actually not return.

“Every apprentice we lose today is just a future tradesman that we don’t have tomorrow, which puts significant pressure on the industry.”