ANALYSIS
In the lead-up to the recent federal election, migration emerged as one of the most politically charged topics in Australia in recent memory.
From social media debates to national programs like Q&A, many Australians voiced concerns about how migration is affecting housing availability and whether infrastructure and public services can keep pace with growing demand.
Data from the Australian Bureau of Statistics sheds light on these concerns. By the end of the September quarter in 2024, net migration had reached 379,800 people annually. This surpasses the previous record of 315,700 set in 2008, and significantly exceeds the 247,600 figure recorded just before the pandemic.
One reason often cited for high migration levels is the need for workers to help alleviate Australia’s housing shortage, which some economists estimate exceeds 250,000 homes.
Historically, newly arrived migrants played a crucial role in addressing housing deficits and building major infrastructure projects like the Warragamba Dam and West Gate Bridge. But does migration still significantly contribute to home construction today?
To better understand how recent migrants are impacting homebuilding, data from the ABS and Grattan Institute was analysed, comparing the share of migrants working in construction-related roles against the general population.
Migrants in Construction
According to 2021 data from the Grattan Institute, migrants who had arrived within the past five years made up 4.4% of the Australian workforce. However, within the construction sector, this group accounted for only 2.8%.
For migrants who arrived five to ten years earlier, the figures were 5.38% of the general workforce and 4.09% of construction workers.
Interestingly, New Zealand citizens under the Trans-Tasman agreement make up a disproportionately large share of migrant workers in construction — 56% more than all other temporary visa holders combined, despite being outnumbered by other temporary migrants overall. This may distort the perception of migrant representation in the sector.
Migrants in Trades and Labour Roles
ABS employment outcome reports also provide insight into how many migrants are working directly in homebuilding trades or as site labourers, focusing on two classifications: “Construction Trade Workers” and “Construction and Mining Labourers”.
Among the overall Australian workforce (including New Zealanders but excluding other migrant groups), 4.62% work in these specific construction roles.
For permanent migrants arriving after 2000, the figure drops to 2.94%. However, this varies widely depending on visa type:
- Skilled stream: 1.65%
- Family stream: 3.06%
- Humanitarian stream: 8.45%
Skilled migrants are 64.3% less likely to work in these roles compared to the broader population. Family stream migrants are 33.8% less likely. Meanwhile, humanitarian migrants are 82.9% more likely to work in these positions.
The Key Takeaway
Australia’s past demonstrates that migration can help address labour shortages in the construction sector. But in 2025, the current migration intake, overall, is adding more pressure to housing demand than it is contributing to housing supply.
Today’s migration program doesn’t prioritise tradespeople to the extent it once did. Of course, skilled construction workers willing to uproot their lives to move across the globe are rare.
While debate over migration’s impact on housing is likely to continue, one fact remains clear: the current intake is not significantly expanding the construction workforce in the way it did in previous eras.
