Australia’s mining sector is facing a growing labour challenge as skilled trades are increasingly choosing city-based construction work over FIFO mining jobs, according to The Australian Financial Review. The shift is being driven by a booming housing market in Perth, where bricklayers can now earn $500–$600 a day, often matching or exceeding mining wages while avoiding long stints away from home.

Kaan Caydamar is a bricklayer in Perth who left a FIFO job operating cranes on a mine site to have a more settled life. Trevor Collens

The AFR reports that despite mining jobs historically paying more than 50 per cent above the national average, the pay gap is narrowing due to rising wages in residential construction, a backlog of housing projects, and strong demand from public-sector building. As a result, mining companies are being forced to offer sign-on bonuses of up to $3,000 and salaries of up to $130,000 to attract new workers, even as total employment in WA mining declined slightly in the past year.

Industry groups warn that labour shortages are becoming structural, with additional pressure expected from major defence and infrastructure projects, including the expansion of the Henderson shipyard under the AUKUS agreement. Housing Industry Australia WA notes that sustained homebuilding activity in Perth is pulling FIFO workers back into the city and slowing the traditional flow of trades to remote mining sites.

These dynamics have clear implications for housing delivery, modular and offsite construction models gain relevance by reducing reliance on scarce trades through factory-based production and repeatable processes. In this context, AUSMOD20K, which aims to deliver 20,000 affordable modular homes across Australia, aligns with market conditions by supporting housing supply growth in an environment of tightening labour availability and rising construction costs.

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