Federal budget 2022: Thousands of new apprenticeships set to be created in SA

The federal government hopes to create “thousands” of new apprenticeships in SA under extensive measures in Tuesday’s federal budget.

More incentives for small South Australian businesses to hire young people is at the centre of a plan to create thousands of additional apprenticeships in the state, plugging skills shortages and driving down youth unemployment.

New measures to support small businesses upskilling their workforces will be a major pillar of the federal government’s Tuesday night budget, directly addressing issues in SA.

Finance Minister Simon Birmingham said on Monday the recession in the early 1990s had “horrific” consequences on youth unemployment.

“That’s meant real challenges of ongoing youth unemployment at times, in particular the northern, southern and western suburbs,” he said.

Finance Minister Simon Birmingham said more support for apprentices is on the way. Picture: Jane Dempster

“We’ve managed to buck that trend to drive youth unemployment to new lows, and we want to keep that going.”

SA’s youth unemployment is at 12.6 per cent – up from a record low of 7.3 per cent in December – while annual wage growth sits at 2.4 per cent. In February 1993, youth unemployment hit 23 per cent.

Senator Birmingham said the budget would have a significant focus on encouraging small businesses to upskill their workers, especially in areas of digital technology and advanced manufacturing.

“In a smaller state like SA, there is more to be gained by backing in small businesses to achieve faster growth,” he said.

“I hear, from SA businesses, constant concerns about skills pressures (and) the need to secure skilled tradespeople working in construction precincts to cyber experts to respond to growth in the digital economy.

Gyprock apprentice Jaiden Ironside welcomed the planned measures to get more young people into apprenticeships. Picture: Tricia Watkinson

“We’re certainly looking to see thousands of new apprenticeships commencements across SA.”

Senator Birmingham said the government wanted to build on the “record” 25,000 apprenticeships already in SA.

The aged-care and mental health sectors were also identified as having skills shortages.

Two years into a plasterboard apprenticeship, Jaiden Ironside, 22, of Christies Beach, said young workers “could use a bit of support”.

“It’s encouraging that the federal government is trying to push new people into trades,” he said.

Mr Ironside said his apprenticeship offered “good, hard work” that was stable.

“I am going to stick through this as long as I can,” he said. “The work is really good.”

Responding to questions about the state’s stagnant wage growth, Senator Birmingham said SA had “huge potential” to capitalise on hi-tech industries, which had “higher-paying jobs”.