The opposition has branded the government’s new ’strategic review‘ into apprenticeships as a ’strategic delay’ amid a shortfall of new trainees.
The government has been criticised for delaying investment in essential skills following a review of incentive schemes for apprentices.
Skills Minister Brendan O'Connor, on Feb. 19, outlined a review of the Australian Apprenticeships Incentive System, which offers a financial boost to employers hiring trainees in essential industries.
The review will examine whether additional incentives are needed to retain apprentices in industries with worker shortages, aiming to secure the future of these crucial sectors.
However, opposition skills minister and deputy leader, Sussan Ley, said the review was merely the government “kicking the can down the road” in boosting apprentice numbers.
“This ’strategic' review is less a strategic review and more a strategic delay, it is taking submissions until the day after the Federal Budget, this all but rules out any new support for struggling apprentices,” she said.
While the government “bakes in a skills deficit,” the country increasingly “relies on foreign workers,” she added.
“The data is clear, despite all of Labor’s promises to skill Australians their policies are failing, there are now over 50,000 less apprentices and trainees today than when Labor took office and we have seen over 110,000 less Australians starting a new course, qualification or trade,” she said.
The review builds on two years of processes, including the Jobs and Skills Summit, the Employment White Paper, and the National Skills Agreement, as well as Fee-Free TAFE and vocational education spots.
However, department officials confirmed Australia’s dire national skills shortage at a recent Senate Estimate.
Of 300,000 Fee-Free TAFE program enrollments, only 23,286 newly skilled workers emerged, leaving a staggering shortfall of 276,714 urgently needed skilled workers nationwide.
Additionally, new trainee commencements plummeted from 277,735 in 2022, to 166,330 in 2023, a significant 40.1 percent decrease, and a deficit of 111,405 potential new trainees in Australia’s workforce.
The impact of this decline is evident, particularly in South Australia (SA), which experienced the most substantial drop in commencements.
With a decrease from 20,230 in 2022 to 9,690 in 2023, SA witnessed a drop of 10,540 starts, posing a considerable setback for the region’s workforce development.
In contrast, the Northern Territory saw a slighter decline compared to SA, with commencements dropping from 2,375 to 2,050, or a shortfall of 325 starters.
Ms. Ley has sounded the alarm about the collapse in commencements across all jurisdictions and the decline in the number of apprentices and trainees in training since Labor’s first year in office.
The numbers paint a grim picture, with apprentices and trainees in-training collapsing in every state and territory since Labor took office, marking a concerning -12 percent drop in trainees since the party’s first year in power.
Ms. Ley emphasised the urgent need to address policies for nationwide skills development and vocational training programs.
“Apprenticeship and traineeship commencements and in-training numbers are in free fall and the much vaunted Fee-Free TAFE policy is not making up the numbers.”
Submissions for the review close on May 15 and consultations will follow in the coming weeks, a timeframe Ms. Ley said would result in a delay of up to 12 months before additional incentives are implemented.
Review Aims to Secure Success for Apprentices
Nevertheless, Labour sees an in-depth review as crucial now due to Australia’s “most serious skills shortages in decades” amid the transition to a net-zero economy. Mr. O'Connor said it’s about ensuring apprentices and trainees succeed in providing essential skills the economy needs.
“We know that almost half of all apprentices don’t complete their training,” he said. “Addressing the completion rate is not just vitally important for individuals and employers, but also for the Australian economy.”
Independent Tertiary Education Council CEO Troy Williams commented that the review was well-timed.
“Incentives are appealing to employers and have been shown to boost commencement, as well as increase completion rates when properly targeted, but they come with significant cost,” he said.
“It’s essential for employers to feel confident and have the certainty that the support available now will remain in place when they are looking to employ their second and third apprentice.”
Prime Minister Anthony Albanese weighed in, condemning the former coalition government’s funding cuts in a strong rebuke.
“Australia should lift our investment in education and training. Instead, the Morrison-Joyce government has cut funding for TAFE and skills training by $3 billion during its time in office. There are now 85,000 fewer Australians engaged in apprenticeships or traineeships than there were when the government took office,” he said.
“But in recognition of the urgent challenges facing our nation, we are taking action now. A growing economy with more skilled workers for more good jobs—that’s my vision.”
