Australia's construction industry isn't just building structures—it's building the nation's economy, adding over $15 billion to the federal tax base while employing a record 1.2 million Australians in a sector whose total activity surpassed $360 billion last year.
Key Takeaways
- In the financial year 2022-23, the Australian construction industry contributed $268.4 billion to the national GDP, accounting for 9.1% of total GDP
- Construction industry output grew by 4.2% in 2023 compared to 2022, driven by residential and non-residential building activities
- The value of engineering construction work done in Australia reached $127.5 billion in 2022-23, up 8.7% from the prior year
- In June 2023, total construction employment reached 1,189,300 persons, a record high with 5.3% growth over the year
- The construction industry employed 9.1% of Australia's total workforce in 2023, totaling over 1.2 million workers
- Full-time employment in construction stood at 1,015,400 in 2023, with part-time at 173,900
- In 2023, there were 2,456 residential building approvals in New South Wales, down 12% from 2022
- Total value of engineering construction projects underway exceeded $500 billion in 2023
- Melbourne's Big Build program included 35 major projects valued at $105 billion as of 2023
- In 2022-23, there were 7.9 serious claims per 1,000 workers in construction, rate of 79.2 per 100,000
- Construction fatality rate was 4.9 per 100,000 workers in 2022, second highest industry
- Falls from height caused 28% of construction fatalities between 2019-2022, totaling 42 deaths
- In 2023, 42% of construction firms adopted green building certifications like Green Star
- Embodied carbon in new buildings reduced by 18% on average for certified projects in 2023
- Solar PV installations on construction sites reached 1.2 GW cumulative by 2023
Australia's construction industry saw strong growth driven by residential and infrastructure investment.
Economic Impact
- In the financial year 2022-23, the Australian construction industry contributed $268.4 billion to the national GDP, accounting for 9.1% of total GDP
- Construction industry output grew by 4.2% in 2023 compared to 2022, driven by residential and non-residential building activities
- The value of engineering construction work done in Australia reached $127.5 billion in 2022-23, up 8.7% from the prior year
- Residential building construction accounted for 38% of total construction activity value in 2023, totaling approximately $102 billion
- Non-residential building work rose by 12.3% year-on-year in Q4 2023 to $18.9 billion
- The construction sector's gross value added increased to $191.2 billion in 2022-23, reflecting strong infrastructure investment
- Total construction investment as a percentage of GDP stood at 8.5% in 2023, highest since 2018
- Heavy and civil engineering construction contributed $85.6 billion or 32% to industry turnover in 2022-23
- The industry's total turnover exceeded $360 billion in 2023, with a compound annual growth rate of 5.1% over the past five years
- Construction exports from Australia totaled $4.2 billion in 2022, primarily services to Pacific nations
- Imports of construction materials reached $25.7 billion in 2023, with steel imports up 15%
- The sector's profit margin averaged 4.8% in 2022-23, down from 5.2% due to rising input costs
- Government construction expenditure was $62.4 billion in 2022-23, representing 23% of total industry spend
- Private sector non-residential construction investment hit $45.3 billion in 2023
- The multiplier effect of construction spending generated $1.60 in economic activity per $1 invested in 2023
- Construction deflation adjusted output grew 2.1% in 2023
- Industry wages bill totaled $78.9 billion in 2022-23, up 7.4% nominally
- Total factor productivity in construction improved by 1.2% annually from 2018-2023
- Construction's share of business insolvencies was 22% in 2023, highest among sectors
- The sector added $15.7 billion in taxes to federal revenue in 2022-23
Economic Impact Interpretation
Australia's construction sector is the nation's stubborn, hard-hatted backbone, simultaneously shrugging off supply chain headwinds to prop up nearly a tenth of the economy while quietly grumbling about its thinning profit margins and alarmingly high rate of business failures.
Employment Statistics
- In June 2023, total construction employment reached 1,189,300 persons, a record high with 5.3% growth over the year
- The construction industry employed 9.1% of Australia's total workforce in 2023, totaling over 1.2 million workers
- Full-time employment in construction stood at 1,015,400 in 2023, with part-time at 173,900
- Average weekly hours worked by construction workers were 39.8 hours in 2023, highest among industries
- Youth employment (15-24 years) in construction was 12.5% of the sector's workforce in 2023, numbering 149,000
- Female participation rate in construction reached 13.2% in 2023, up from 11.8% in 2020, totaling 157,000 women
- Apprentices and trainees in construction numbered 130,200 in 2022, comprising 52% of all apprenticeships nationally
- Construction unemployment rate was 3.7% in 2023, below the national average of 4.1%
- Underemployment in construction affected 6.8% of workers in 2023, primarily casual laborers
- Job vacancies in construction peaked at 89,700 in May 2023, 25% above pre-COVID levels
- Skilled migration filled 18,500 construction roles in 2022-23, mainly carpenters and electricians
- Average weekly earnings for construction managers were $2,856 in 2023, 28% above national average
- Labour turnover rate in construction was 14.2% in 2023, driven by skill shortages
- Indigenous employment in construction reached 4.1% or 49,000 workers in 2023
- Self-employment accounted for 28% of construction workforce, or 334,000 persons in 2023
- Regional construction employment grew 7.2% in 2023 vs 4.1% in metro areas
- Over 65s employment in construction doubled to 42,000 since 2016
- Construction employed 1.3% of workers with disabilities, totaling 15,600 in 2023
Employment Statistics Interpretation
Australia's construction sector is not just building record numbers of homes and infrastructure; it's also painstakingly constructing its future workforce, brick by hard-won brick, as it juggles a hiring boom, a desperate scramble for skilled hands, and a slow but promising shift toward becoming a more diverse and inclusive industry.
Project Data
- In 2023, there were 2,456 residential building approvals in New South Wales, down 12% from 2022
- Total value of engineering construction projects underway exceeded $500 billion in 2023
- Melbourne's Big Build program included 35 major projects valued at $105 billion as of 2023
- Sydney Metro West project, valued at $25 billion, was 25% complete in 2023
- Queensland's Cross River Rail project reached 40% completion in 2023, costing $6.4 billion
- Western Australia's METRONET rail expansion comprised 14 projects totaling $10.4 billion in 2023
- Nationwide, 145,200 new dwellings were approved in 2022-23, a 3.8% decline
- Non-residential building approvals totaled $32.4 billion in value for 2023, up 10%
- Infrastructure projects over $50 million numbered 1,200 in 2023, per Austroads data
- Renewable energy construction projects added 4.2 GW capacity in 2023, valued at $8.5 billion
- Hospital construction projects valued $12.3 billion were under construction in 2023
- School building projects nationwide totaled $4.1 billion in federal funding for 2023
- Road and bridge projects consumed 45% of state infrastructure budgets in 2023, $28 billion
- Water infrastructure pipeline included 78 projects worth $22.6 billion in 2023
- Defence construction spending reached $15.2 billion in 2022-23, including naval bases
- Mining sector construction capex was $42.7 billion in 2023, focused on LNG expansions
- Affordable housing projects approved numbered 12,500 units in 2023, valued at $3.8 billion
- Data centre construction boomed with 15 projects totaling $5.2 billion in 2023
- Heritage restoration projects in construction numbered 340, valued at $1.2 billion in 2023
Project Data Interpretation
Australia's construction industry in 2023 was a tale of two sites: while the residential sector politely coughed into its hard hat, the nation's engineers were busy orchestrating a half-trillion-dollar symphony of infrastructure, renewable energy, and data centres, proving we’re far more committed to building the future than we are to building a future buyer a home.
Safety and Health
- In 2022-23, there were 7.9 serious claims per 1,000 workers in construction, rate of 79.2 per 100,000
- Construction fatality rate was 4.9 per 100,000 workers in 2022, second highest industry
- Falls from height caused 28% of construction fatalities between 2019-2022, totaling 42 deaths
- Musculoskeletal disorders accounted for 42% of serious claims in construction in 2022-23
- 1 in 4 construction workers experienced a work-related injury in the past year as of 2023 survey
- Lost time injury frequency rate (LTIFR) in construction averaged 2.1 per million hours in 2023
- Being struck by moving objects caused 19% of serious injuries, 1,200 cases in 2022-23
- Mental health claims in construction rose 25% to 1,800 in 2022-23
- Heat-related incidents increased 15% in construction during 2022-23 summer
- Compliance with safety regulations improved to 87% in audited sites in 2023
- Asbestos exposure claims numbered 450 in construction workers in 2022
- Fatigue-related incidents accounted for 12% of vehicle accidents on sites in 2023
- Safety training completion rate reached 92% among large contractors in 2023
- Electrical incidents caused 8% of serious injuries, 650 cases annually average 2020-2023
- Trench collapse fatalities averaged 3 per year from 2018-2023
- Hearing loss claims totaled 2,100 in construction over past decade to 2023
- Safety investment per worker averaged $1,250 in 2023, up 10% from 2022
- Return to work rate within 6 months was 78% for construction injuries in 2022-23
- Silica dust exposure led to 1,200 compensation claims in 2022-23
- Construction sites reported 15,400 notifiable incidents to regulators in 2023
Safety and Health Interpretation
While Australian construction sites are hitting higher compliance targets with training, the grim reality remains that nearly one in four workers gets injured, with falls and musculoskeletal issues still carving a brutal, predictable path through the workforce.
Sustainability and Innovation
- In 2023, 42% of construction firms adopted green building certifications like Green Star
- Embodied carbon in new buildings reduced by 18% on average for certified projects in 2023
- Solar PV installations on construction sites reached 1.2 GW cumulative by 2023
- Waste diversion from landfill in construction hit 76% for major projects in 2023
- Use of recycled materials in concrete mixes averaged 25% in new infrastructure 2023
- Net-zero ready buildings certified numbered 150 in Australia by end-2023
- BIM adoption rate in large construction firms reached 85% in 2023
- Modular construction accounted for 8.5% of residential builds in 2023, saving 20% time
- Water usage efficiency improved 22% in Green Star projects from 2018-2023
- Digital twin technology implemented in 120 major projects by 2023
- Prefab timber construction grew 35% year-on-year to $2.8 billion in 2023
- AI-driven predictive maintenance used in 45% of heavy machinery fleets 2023
- Circular economy practices adopted by 62% of contractors in 2023 survey
- EV charging infrastructure built into 30% of new commercial parks in 2023
- 3D printing used in 25 housing projects, producing 500 units in 2023
- Energy performance certificates showed 15% improvement in new builds 2023
- Drone usage for site surveys increased to 78% among top 100 firms in 2023
- Low-carbon steel procurement rose to 40% in major bridges 2023
- IoT sensors monitored energy use in 55% of smart buildings completed 2023
- Biodiversity net gain achieved in 120 infrastructure projects in 2023
- Construction 4.0 technologies invested $1.2 billion across industry in 2023
Sustainability and Innovation Interpretation
While the Australian construction industry still loves a good hard hat, 2023 proved it's also serious about smart hats, with nearly half its firms building green, three-quarters of its waste being diverted, and its digital twins, drones, and AI all ensuring that the path to a sustainable future is being constructed with both precision and a surprising amount of recycled concrete.
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