Apprenticeships crater

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By Leith van Onselen

Apprenticeship data released by the National Centre for Vocational Education Research (NCVER) revealed that traineeship and apprenticeship commencements have fallen by more than 45% over the past four years, with apprenticeship commencements declining by 10.1% in just the past 12 months (see below chart).

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Apprenticeship completions have fallen heavily, too, down by 24.0% in the past 12 months alone.

The falls in apprenticeship numbers have been broad-based, although they are heaviest in New South Wales and Victoria (see below table).

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This data is concerning on a number of levels.

First, while the latest Department of Employment Skills Shortages report concluded that “skill shortages continue to be limited in the Australian labour market”, it did find some areas of pressure in the “technicians and trades” space, particularly in New South Wales and Victoria (see below charts).

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Second, apprenticeship are a key pathway to employment for Australia’s youth. By slashing their numbers, Australia is directly limiting youth employment opportunities, forcing many instead into insecure and low-paying “Mc Jobs” in the services industry.

Increasing apprenticeship numbers must be a focus of the upcoming Federal Government.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.