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The availability of skilled labor in Australia's residential sector recorded a marked deterioration in the December quarter, research has shown.
The Housing Industry Association said there was a shortage of labor in ten out of thirteen skilled trades at the end of 2009, compared to eight trades being in shortage in the September quarter.
The headline HIA - Austral Bricks trade availability index ticked down to minus 0.07 from minus 0.08 in the December quarter, meaning tradespeople were defined as being in moderate under supply.
Meanwhile, the trade prices index increased by 0.9% in the December quarter following a 0.5% rise in the preceding quarter. The index was 2% lower from a year ago, HIA said.
"Price pressure is still modest and trade availability, while deteriorating, is still considerably better than it was up until late-2008. So it is a favorable time to build a new home or renovate an existing property," said Harley Dale, HIA's chief economist.
"The clock is ticking, however, given the competition across different sectors in 2010 for a limited pool of skilled labor."
"There is a clear risk that labor shortages will re-emerge as a significant constraint on the rate of recovery in both new home building and renovations by the middle of this year."
Dale said it was important to bolster the domestic skilled workforce in the next few years and that the training of apprentices and trainees needed to be afforded high priority.
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