‘No money left’: Grim tradie trend takes over

A 20-year-old’s salary has exposed a problem the tradie industry is facing in 2024.

Gen Zers are hanging up their steeled cap boots because they can’t make ends meet on low apprenticeship wages.

Group training organisation Apprenticeships Are Us Ltd has trained automotive apprentices for over 15 years, and the business has noticed a concerning shift.

The cost of living crisis is forcing an alarming 60 per cent of automotive apprentices to abandon their training, a trend that threatens to exacerbate the industry’s skills shortage.

Jake, 20, is from New South Wales’s Southern Highlands and is currently completing an automotive apprenticeship.

The 20-year-old is earning $580 per week and is on the verge of dropping out because more than earning $45,000 per year is needed to live on.  

Jake told news.com.au that he still lives at home but “would love to move into my own place if I had more money.”  

Jake wants to earn more money. Picture: Supplied

Jake is considering dropping out. Picture: Supplied

The young tradie explained that basic living costs too much and his low wages are making daily life a struggle.

“With the cost of fuel and other expenses, there’s no money left. Everything is expensive at the moment. Life is expensive now, decisions are made for me based on what I earn over what I’d really like to do,” he said.

For example, he’d like to move out, buy a nicer car, and not be stressed about money. Jake isn’t keen on dropping out, but he is also not sure he can afford to continue.

“I love my job, and like the trade, I can have a laugh, but it is not enough money as an apprentice with the cost of living right now,” he explained.

The young tradie explained that basic living costs too much and his low wages are making daily life a struggle. Picture: iStock

Of course, he knows that if he sticks with it, he’ll be fully qualified and have lucrative job options, but that’s three years away.

“Among my friends, it’s hard to support ourselves on low wages, and you can earn more money as a labourer. FIFO as a labourer is nearly $100,000 and I am earning $30,000 as an apprentice right now,” he said.

In an ideal world, Jake would “love” to finish his trade, but he doesn’t want to fall behind in the meantime.

“The salary as a qualified mechanic is really good. The problem is house prices and other dreams I have are getting more expensive by the day so to hold back for three more years makes the dream even further away,” he said.

In Jake’s case, his dream is to buy a classic car, but even that feels “unachievable” because they are continuing to increase in value.

The cost of living crisis is impacting tradies. Picture: iStock

Phil Cooksey, general manager of Apprenticeships Are Us Ltd, said that the attractive starting salaries and high demand for skilled tradespeople are no match for the current financial pressure of daily life - due to the cost of living.

Mr Cooksey said the sharply rising living costs, particularly in Sydney, drive many apprentices to seek immediate, contract or casual employment in unskilled labour for short-term financial security.

“The current cost of living pressure, especially in the Sydney area, is probably the biggest culprit for people quitting their apprenticeships,” he explained.

“The Government has been offering incentives to help ease the cost of living pressure, but even still, apprentices are finding themselves faced with difficult decisions.”

Mr Cooksey said the best advice he could offer any young person studying a trade is to stick with it because it’ll eventually pay off.

“A qualified car mechanic can earn around $75,000 per annum, while those specialising in heavy vehicles, like trucks and buses, could see salaries reaching $100,000. With the strong demand for automotive skills, apprentices who complete their training are likely to find job opportunities in their preferred locations,” he advised.

In 2023, a National Centre for Vocational Education report found that the number of people starting trades is trending downwards overall.

The latest figures show a 37 per cent drop in signups in the March quarter of 2023 compared to 2022.

Conversely, the number of people starting university is also dropping, with the 2022 enrolment cohort being the lowest in nine years.

Originally published as ‘No money left’: Grim tradie trend takes over