Australia’s Apprenticeship and Traineeship System — Employer Insights

Date: 11 August 2025

Australia’s Apprenticeship and Traineeship System — Employer Insights

A new report from the Australian Industry Group (Ai Group), Apprenticeships and Traineeships: The Employer Perspective, reveals the system is not producing enough skilled workers to meet national needs. At the same time, employers face increasing costs and complexity, leading to declining satisfaction.

Despite the challenges, apprenticeships remain highly valued — about 80% of surveyed employers see them as important to their business. However, 96% have encountered barriers, most commonly difficulty finding suitable candidates and the supervision/training demands on existing staff.

The report is based on a survey of 138 employers (80% SMEs) and in-depth interviews, with construction and manufacturing the most represented sectors. It identifies six priority areas for improvement:
1. Ensuring the economic equation remains viable.
2. Expanding the pool of employers offering opportunities.
3. Strengthening the pipeline from schools.
4. Extending apprenticeships into higher-level qualifications.
5. Reducing complexity across jurisdictions.
6. Supporting high-quality experiences.

Strong links between employers and local schools emerged as a key success factor. Businesses offering work experience, school-based apprenticeships, or industry immersion often have no trouble finding candidates. Stoddart, a large manufacturer with 25 apprentices, hosts school liaison officers, runs work experience, and fosters long-term connections to attract talent.

Financial incentives play a vital role: two-thirds of employers use them to offset reduced productivity, while others fund apprentice coordinators to boost completion rates. About half said they would cut apprentice numbers without incentives.

Employing apprentices is a significant multi-year investment, so employers weigh costs like supervision, lost productivity, and attrition — often highest in the first year. Strategies to improve completion include better recruitment/matching, pre-apprenticeships, strong supervision, and early mentoring. Mature apprentices, while more costly, can bring faster productivity and stability.

The report calls for action to make the system more attractive and sustainable for employers and apprentices alike. By maintaining financial viability, widening participation, and building strong school-industry links, Australia can strengthen the pipeline of skilled workers needed for the future.