A report by the Queensland Productivity Commission has found that Queensland’s construction industry is increasingly struggling to meet demand. This has raised concerns about the state’s ability to deliver new housing, essential infrastructure and major public projects at a time of strong population growth.

The report attributed much of the problem to declining productivity across the sector. Over the past 30 years, construction productivity has increased by just 5 per cent. By comparison, productivity across the broader market economy has grown by 65 per cent over the same period. More concerning, construction productivity has gone backwards in recent years. Since 2018, it has declined by almost 10 per cent.

This downturn has significantly limited the industry’s capacity at a time when demand for new homes is rising sharply. This is due to population growth, interstate migration and ongoing housing shortages across the state.

In response, the Queensland Government has committed to a series of changes aimed at lifting productivity and addressing workforce constraints.

So, what is the impact of these challenges — and how is the government planning to respond?

What is the impact of this?

The report found that declining productivity is a major factor behind Queensland’s inability to meet Australian housing targets. It is estimated that the fall in productivity since 2018 has resulted in around 80,000 fewer homes being built. This has worsened supply pressures across the housing market.

As a result, Queensland’s construction industry is currently operating at just 63 per cent of the capacity required to meet national housing goals. This shortfall has intensified concerns about housing affordability, rental availability and delays to critical projects across the state.

Unless productivity improves, there are also growing doubts about Queensland’s ability to deliver the major infrastructure projects required ahead of the Brisbane Olympics.

What has been the government’s response?

The Queensland Government has signalled in-principle support for 51 of the 64 recommendations made in the report. These recommendations are aimed at cutting red tape, improving efficiency and lifting overall productivity within the construction sector.

Among the measures adopted is a review of health and safety regulations, including how workplace health and safety disputes are managed. The report heard that some parts of the industry acknowledged these regulations were, at times, being used to pursue objectives unrelated to safety, contributing to delays and cost pressures.

The government will also review policies for managing adverse weather events. Weather has increasingly disrupted construction timelines and productivity across the state.

Other recommendations accepted by the government include more targeted policies to boost apprentice numbers and improve workforce pipelines. Licensing processes for overseas-trained workers will be streamlined. Meanwhile, the government has also pledged to advocate for more skilled migration places to be allocated to the construction industry.

As governments move to cut red tape and expand the construction workforce, these reforms are expected to create new opportunities across the industry. Demand is likely to grow across various  roles  as Queensland works to lift productivity and meet housing and infrastructure targets.

If you are considering a new career or looking to take the next step in construction, Construction Resumes can help. We offer professional resume writing and cover letter services tailored specifically to the construction industry.

Article References

Johnson, H (21 January 2026) ‘Union heat policy under review as government targets construction productivity’, Courier Mail, accessed 22 January 2026.

Twyford, L (21 January 2026) ‘Queensland government to change construction industry after inquiry finds productivity declining’, ABC News, accessed 22 January 2026.