Kiernan said companies in the construction industry are struggling with supply and demand issues.
“We know there have been reports throughout this year of how difficult it has been to source materials in the construction industry, GIB being the best example of this, but that it is whether wood or other component materials, there are also there have been blockages there and disruptions in supply chains,” he said.
“At the same time, we know that housing construction activity has reached incredibly high levels – a record number of permits also in the last year – very difficult demand conditions and supply conditions very difficult and companies in the construction sector are struggling as a result of this.”
Kiernan said the labor market is incredibly tight, with three quarters of companies saying it is getting harder to find skilled and unskilled workers and he warned things could get worse.
“Well, we are moving towards a place where the border is starting to reopen and normally you would think that means better access to foreign workers because more people can enter the country,” he told AM.
“But the problem we’re really seeing in the job market right now is because borders are opening up, young people are looking at opportunities to travel abroad, looking at the cost of living and income in Australia and leave, I might just be better off there.
“So we actually see things potentially getting worse in the short term rather than getting better, so no real solutions at the moment.”