Queensland’s Workforce Crunch: What Contractors Need To Do Before 2028

Queensland is heading into a once-in-a-generation infrastructure boom, with construction activity forecast to climb from about $53 billion in 2024–25 to around $77 billion by 2026–27. For Tier-2 and Tier-3 contractors, that pipeline represents significant opportunity—but also a test of workforce capacity and compliance.

Construction Skills Queensland’s Horizon 2032 analysis points to peak demand of roughly 156,000 construction workers in 2026–27, with an average annual shortfall of about 18,200 workers and a peak gap of around 50,000 workers. At the same time, the Queensland Government’s Queensland Procurement Policy 2026 (QPP 2026) and the Building and Construction Training Policy hard-wire apprentices, trainees and local employment into tender scoring and supplier eligibility.

1. The Human Gap: Understanding the Numbers

Horizon 2032 projects that Queensland’s construction pipeline will increase by roughly 45 percent between 2024–25 and 2026–27, driving labour demand to a peak band around 156,000 workers. Against that demand, industry analysis points to a persistent skills shortage, with an average eight-year shortfall of about 18,200 workers and an expected peak gap of approximately 50,000 workers in 2026–27.

Government and industry are responding with targeted workforce initiatives, including multi-year workforce strategies and training investments directed at construction and civil trades. For contractors, these strategies set the expectations for how apprenticeships, traineeships and local employment will be assessed in tenders and compliance reviews through to 2032.

2. Why Your Workforce Plan Is Now Tender Strategy

Under the “Buy Queensland” approach and QPP 2026, workforce and local benefits are embedded directly into procurement evaluation and supplier assurance.

• Local Benefits Test can carry a significant weighting in tender assessments, rewarding demonstrable local employment and regional economic contribution.
• A business is generally treated as “local” for project evaluation purposes when the workforce usually resides within a specified radius—often benchmarked at 125 kilometres—of the project location.

The Building and Construction Training Policy and related guidelines require that a minimum share of total labour hours on eligible state-funded projects be delivered by Queensland apprentices, trainees and other recognised workforce training.

• Standard projects: at least 10% of total labour hours to apprentices, trainees and other approved training.
• Major projects ($100M+): the mandated training component increases to 15% of total labour hours.

3. Step 1 – Audit Your Current Workforce

A practical workforce plan starts with a clear baseline of current workforce, training activity and data quality.

Key questions

• Geography: Where do employees live, and how many fall within 125km of current and target project regions?
• Training: What proportion of labour hours on recent government projects have been delivered by apprentices/trainees?
• Skills and tickets: Which licences, trade qualifications and high-risk tickets are held across the workforce?
• Reporting: Is TPAS reporting accurate, up-to-date and submitted on time each month?
• Demographics: What is the age profile and where are potential attrition risks in critical roles?

Data to pull from HR/payroll

• Employee postcodes for 125km mapping
• Total labour hours on eligible government projects (last 12–24 months)
• Apprentice and trainee hours by project
• Current headcount and entity structure to confirm SME status

4. Step 2 – Calculate Your Future Training Obligations

With the baseline established, the next step is to estimate the training hours attached to upcoming bids.

Training hour requirements

• Standard projects: at least 10% of total labour hours
• Major projects ($100M+): at least 15% of total labour hours

For major projects, guidance breaks the 15% requirement into an indicative mix of about 60% new-entrant apprentice hours and 40% upskilling/other training hours.

For major projects, the calculator output can then be split into new-entrant and other training targets, supporting decisions about apprenticeship intake, subcontractor expectations and TAFE or RTO partnerships.

5. Step 3 – Map Your Strategy Against Regional Needs

QPP 2026 and the Queensland Workforce Strategy emphasise regional skills development, not just aggregate numbers. CSQ’s Horizon 2032 report shows that labour pressure in Brisbane differs from that on the Sunshine Coast or in Rockhampton.

Aligning recruitment, apprenticeship and training activity with these hubs provides a concrete basis for explaining how your workforce plan supports local skills development and regional capacity.

6. Step 4 – Turn Your Workforce Plan Into a Tender Asset

A clear workforce plan is both a compliance safeguard and a way to present as a low-risk delivery partner.

In tender responses

• Use numbers from the workforce audit to answer Local Benefits Test questions—share of workforce within 125km, apprentice/trainee performance against 10%/15% targets
• Attach a concise workforce strategy summary showing how you’ll meet training obligations, work with local RTOs, and track performance through TPAS

In ICN Gateway and directory profiles

• Replace generic labels like “labour hire” with region-aware descriptions: “Civil workforce (125km local residents) for road and drainage packages, aligned with Queensland training policy”
• Use 25-word summaries emphasising fleet, region and training: “Gold Coast earthworks contractor with 20-tonne fleet, local workforce and apprentice program aligned to state training obligations”

7. Looking Ahead to 2032

QPP 2026 takes effect from 1 January 2026, explicitly linking training performance and ethical supplier behaviour to future eligibility for government work. CSQ’s modelling suggests the construction workforce gap will peak around 2026–27 and remain a structural issue without sustained investment in training and new-entrant pathways.

For Queensland contractors, a workforce plan grounded in data, aligned with regional hubs and backed by clear training commitments now sits alongside pricing, methodology and safety as a core part of being ready for the 2032 pipeline.