Trades Workforce Planning in Australia: Your FY2026-27 Hiring Plan

For trades and services businesses, the skilled labour shortage makes early workforce planning a competitive advantage, not an administrative task. Australia’s trades shortage is structural, and reactive hiring is consistently slower and more expensive than planned hiring. Confirming your FY2027 workforce needs in July, rather than when a site is already under pressure, is what secures the right people first. 

Why is July the most practical planning window for trades businesses? 

Because budgets reset on 30 June and the market tightens from Q2. Confirming labour hire volumes and direct hire needs for the first half of FY2027 in July lets you set preferred supplier arrangements before demand peaks and construction activity ramps up. 

The broader labour market is easing. Jobs and Skills Australia found 29 per cent of occupations in shortage in 2025, down from 33 per cent in 2024. Trades are the exception. In construction, nearly half of trade occupations were assessed as in shortage in 2025. Apprenticeship intakes also need scoping early, so sourcing can begin sooner. 

How do you map FY2027 workforce needs by project and site? 

Map demand the way the work arrives: by site and project, and by whether the need is ongoing or temporary. 

• Separate project-based demand (labour hire, contract) from permanent workforce needs, and confirm volumes for each by site for Q1 and Q2. 

• Identify your highest-risk roles: hardest to fill, most critical to operations, and most likely to turn over. Make these your first priorities. 

• For direct hires, build a sourcing timeline. Regional trade roles take three months or more to fill on average. 

• For labour hire, review your preferred supplier panel and confirm volume expectations so your partner can pre-build a pipeline. 

Labour hire or direct employment: which model works when?

Use labour hire for variable or short-term demand, and direct employment for ongoing core roles. Base the decision on total cost and how predictable the work is, not headline rates. 

How do you budget for tradespeople and labour hire? 

Budget on total cost, not headline rates, and build vacancy cost into the plan. 

• On-costs for direct hire: base wages plus 12 per cent super, leave entitlements, payroll tax, work cover premium, and site allowances such as travel, accommodation, and PPE. 

• Labour hire: compare total cost of engagement, including the agency margin, against total cost of direct employment. 

• Vacancy cost: a skilled trades role vacant for 60 days carries a productivity impact that often exceeds the recruitment fee. 

• Apprentices: wages are set by the relevant award. Budget for supervision time and the productivity ramp-up, not just the wage. 

Which digital capabilities should trades businesses plan for? 

Trades businesses increasingly compete on how efficiently they quote, schedule, and run sites, and digital tools drive all three. Planning for it in FY2027, rather than chasing it mid-project, keeps a business competitive as the sector modernises. 

The roles to prioritise are those where trade skills meet digital tools. Estimators using digital take-off software and supervisors on project management platforms are increasingly sought after. The candidate pool is smaller than for traditional trades, so identify these roles early, and ask which roles need skills your current workforce lacks. 

Frequently asked questions 

Why is there a skilled trades shortage in Australia?  

Trades take years to train, the workforce is ageing, and demand from housing, infrastructure, and energy projects is outpacing supply. Technicians and trades workers make up more than half of all occupations in persistent national shortage. 

Should I use labour hire or direct employment?  

Use labour hire for project peaks and variable demand, and direct employment for ongoing core roles. Compare total cost of engagement against total cost of direct employment rather than headline rates. 

How do I budget for a trades role?  

Use total cost: base wages plus 12 per cent super, leave, payroll tax, work cover, and site allowances such as travel, accommodation, and PPE. Build in the cost of a role sitting vacant, which often exceeds the recruitment fee. 

Plan your FY2026-27 trades hiring with Fuse 

Securing skilled tradespeople continues to be one of the biggest challenges for employers, making early workforce planning more important than ever. At Fuse Recruitment, we partner with businesses across construction, maintenance and field services, combining industry expertise with a practical understanding of the trades market to help clients build reliable workforces. 

Whether you’re planning upcoming projects, forecasting labour requirements or reviewing your recruitment strategy, our team is here to provide market insights, practical advice and specialist recruitment support tailored to your business. 

If you’d like to discuss your FY2026-27 hiring plans or learn more about the current trades talent market, get in touch with our team. We’d be happy to help you develop a workforce strategy that supports your operational goals and keeps your projects moving. 

This article is general information only and does not constitute financial or tax advice. For your situation, check the ATO or a registered tax or financial adviser. The Fair Work Ombudsman also summarises the new rules and employer obligations.