Tradies are earning more than some university graduates

Is a degree worth the debt? New data reveals that apprenticeships can lead to better employment outcomes than university degrees – without the HECS debt.

Newly qualified carpenters can earn more than an architect straight from university, new statistics show.

Apprenticeships are producing young workers with higher employment rates than many university degrees, new data shows.

Newly minted tradies also earn similar starting wages to university graduates in similar fields.

The National Centre for Vocational Education Research found 94.5 per cent of trade apprentices who completed their training in 2023 were employed by mid-2024.

In contrast, 88.9 per cent of university graduates were employed four to six months after finishing their studies in 2023, based on the federal Education Department’s latest graduate outcomes survey.

University graduates earned an average starting salary of $71,000 in 2023, compared with $67,028 for tradies starting work in 2024.

The new NCVER data shows young workers with a trade in electrotechnology or telecommunications earned an average of $82,900 in their first job in 2024 – almost as much as young doctors.

Barely 3 per cent of young tradies in this field were out of work six months after completing an apprenticeship, compared with 17 per cent of university graduates with a degree in computing and information systems.

Construction trade workers, including plumbers and carpenters, started work on wages averaging $68,200 while automotive and engineering tradies earned $73,100.

University graduates with a degree in architecture or built environment averaged $66,000 in their first job, based on the latest university graduate data from 2023.

New data shows the degrees of difference between apprenticeships and university study. Picture: iStock

Graduate engineers averaged $75,000 in first-year earnings.

Beginner teachers earned $75,000, graduate lawyers were paid $73,000 while computing and information technology graduates earned $74,000 in their first job.

Even in the most academically rigorous field of medicine, the starting salary averaged just $85,000 in 2023.

NCVER managing director John King said “we know apprenticeships lead to jobs’’.

“The outcomes are also strong for students who do not complete their apprenticeship,’’ he said. “Over three-quarters found jobs, showing that vocational training can play a valuable role for some students even if they do not complete their training.’’

The statistics shed light on why more school-leavers have shunned university since the Covid-19 pandemic, in favour of on-the-job training through apprenticeships that leave them free of student loan debt.

The comparison coincides with a new survey showing that vocational education and training providers are struggling with regulatory red tape.

One-third of VET providers surveyed admitted that meeting their regulatory obligations would be their biggest challenge this year.

Barely one in five providers has developed a plan for using artificial intelligence, based on the Voice of VET report by people management and payroll technology provider Ready­Tech.

The annual survey of senior VET executives from 140 training providers, including TAFE colleges, shows most are trying to match education to industry needs.

Seven out of 10 VET providers did not have a defined plan for using AI, despite half of them viewing AI as an opportunity for business, and 9 per cent as a threat.

ReadyTech general manager of education Trevor Fairweather said the potential of AI was evident for course design, assessment and compliance.

“In coming years, AI will only become more central to training delivery, so ensuring providers have the tools, knowledge and confidence to embrace it is critical,’’ he said.