Coalition accuses Labor of ‘failing’ skills promise as construction apprenticeship numbers fall

The number of Australians starting construction trades apprenticeships fell 22 per cent in one year under Labor.

Amid a national housing crisis the number of Australians starting construction trades apprenticeships fell 22 per cent in a year under Labor, as Covid-era incentives for employers ended.

Nationally only 41,935 people began training across trades like bricklaying, carpentry, electrical and plumbing in 2023, down from a peak of 54,035 the previous year, according to data from the national Centre for Vocational Education and Research.

Across all skill areas the number of people starting training dropped to 170,370 in December from a high of 277,900 in June 2022 due to the then-Coalition government’s lucrative $30,000 wage subsidy incentive for employers to hire and keep on apprentices.

There were 343,640 apprentices in-training last year, which was 85,360 less than the peak of enrolments under the Coalition’s wage subsidy, but still 83,525 higher than the number of trainees in 2019 before the pandemic.

The Coalition has accused the Albanese Government of failing to meets its election pledge of skilling more Australians, while Labor criticised the opposition for using figures “artificially inflated” by the unsustainable Covid wage subsidy.

The number of construction apprentices starting in Australia has declined since the pandemic. Picture: Roni Bintang/Getty Images

Master Builders Australia chief Denita Wawn has warned improving Australia’s domestic pipeline of construction workers will be “critical” in overcoming the housing crisis”.

“For decades, we have seen the cultural erosion of trade apprenticeships with students being pushed towards the university system,” she said.

“It will take a concerted effort by governments, industry, schools and the broader community to turn this ship around.”

Labor invested $265 million in skills training in the last budget. Picture: NCA NewsWire / Jeremy Piper

Ms Wawn said the construction sector was facing acute worker shortages with an annual exit rate of eight per cent, which was currently only being replaced at half that.

“Prolonged construction labour shortages will lead to a $57 billion reduction in Australia’s GDP over the next five years,” she said.

Apprentice Kaylee Kimber at construction site. Picture: Richard Walker

Ms Wawn said she would like to see Labor’s “positive announcements” aimed at attracting more people into the consturction industry “expanded” with “stronger support” from states and territories.

Deputy Liberal leader Sussan Ley says Labor has failed to deliver its promise to up the number of skilled apprentices. Picture: NCA NewsWire / Martin Ollman

Pointing to Labor’s pre-election promise to deliver “more skilled workers,” Coalition skills and training spokeswoman Sussan Ley said the government had “failed to match its rhetoric” on boosting trainee numbers.

“The bottom line here is we need more apprentices and trainees, not less,” she said.

“Labor promised they would skill more Australians, but their programs are not delivering.”

Skills and Training Minister Brendan O’Connor says the Coalition is using inflated numbers to bolster its record on apprenticeships. Picture: Linda Higginson

Skills and Training Minister Brendan O’Connor hit back at the opposition for using data inflated by wage subsidies designed to “reduce unemployment” rather than provide “genuine support for apprentices”.

“It was unsustainable and artificially inflated apprenticeship numbers, which is why the Coalition cut the programs before they left office,” he said.

Ms O’Connor said the government was continuing to invest in skills with $265 million in additional support for apprentices and employers in priority occupations in the May budget, and $90m to support more people into occupations in the housing and construction sector.

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Originally published as Coalition accuses Labor of ‘failing’ skills promise as construction apprenticeship numbers fall