Apprenticeship and traineeship plunge to hit two-decade low

A plunge in the number of new apprenticeships to their lowest levels since at least 1998 risks leaving businesses without the skills needed for an economic recovery.

There has been a sharp decline in the number of new apprentices through the health crisis, which could leave businesses short of the skills they need once the post-COVID economic recovery takes hold. Picture: Jamie Hanson

A plunge in the number of new apprenticeships to their lowest levels in more than two decades risks leaving businesses without the skilled workers they need as economic recovery ramps up in the years ahead.

Leaked Department of Education, Skills and Employment figures obtained by The Australian reveal the number of Australians starting apprenticeships and trainees plunged by a fifth over the four months to July compared to the previous year.

The sharp decline through the COVID-19 recession has left Australia on track to record the lowest level of apprentice starts since at least 1998, National Australian Apprenticeship Association chief executive Ben Barden said.

As the Morrison government prepares to unveil a stimulatory budget aimed at creating jobs and growth, Mr Barden said the severe fall in apprenticeships through the health crisis would “complicate” the post-COVID recovery, and employers in coming years would face skill short­ages just as they seek to ramp their businesses back up.

“It takes four years to complete an apprenticeship, and this is creating a gap that will be preserved for the next four years when we would hope the economy will be going gangbusters,” he said. “The recovery should be full steam ahead (by then) and we won’t have the skills to underpin it.”

The number of new apprentices fell 11,990 over the four months to July to 20,885, the unreleased government figures showed: that’s a fall of 22 per cent compared to the previous year.

Trades have held up better than non-trades, falling 10 per cent and 30 per cent, respectively, compared to the same ­period in 2019.

A spokesman for Employment Minister Michaelia Cash said despite the decline in commencement numbers, “new apprentices continue to be engaged, and since May 2020, the data indicates an upward trend”.

The NAAA estimated there would be 10,000 fewer apprentices and trainees at 282,000 by December, versus 272,505 in March. Mr Barden said this suggested a 13 per cent shortfall against an estimated 325,000 apprentices required, given the size of Australia’s economy.

The Department of Education, Skills and Employment figures showed there were about 7200 apprenticeship suspensions over the three months to June, five times more than a year earlier, suggesting employers were choosing to retain and suspend apprentices rather than let them go through the depths of the COVID-19 downturn.

Trades starts dropped 10 per cent versus a year earlier, while non-trade traineeships declined 30 per cent as COVID-19 restrictions devastated industries such as hospitality and food services.

Women suffered a bigger hit in terms of new commencements, down 28 per cent versus 19 per cent for men.