Australia's skilled building labor still in moderate oversupply

Skilled building labor in Australia was again in moderate oversupply in the September quarter, according to a survey released on Friday by the Housing Industry Association (HIA), the nation's largest residential building organization. The HIA Trades Report, a survey of HIA's builder and sub- contractor members, showed a trend of modest oversupply in the residential building industry in September quarter. The HIA Trade Availability Index was at +0.06 in the September quarter, following a reading of +0.10 in the June quarter, indicating a continuing over-supply. In the September quarter there was a shortage of skilled laborers in three of the thirteen trades surveyed, the HIA said. Two of them were in equilibrium and the remaining eight trades were in over-supply trends. HIA acting chief economist Andrew Harvey said the survey has provided further evidence of continuing weakness in the home building industry. "There is no doubt that new home building is in need of stimulus as we head towards the end of the calendar year 2011," he said. "The November interest rate cut was a necessary first step but so much more is needed to stimulate a return of residential building to decent levels."