Category: Apprenticeship Program

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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.

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Published by News.com.au on May 28, 2025

Business Council of Australia calls for employer incentives to hire more tradie apprentices

A leading business industry group has called for a critical $40m fund for large businesses to boost apprenticeship programs to avoid oncoming skills shortages in key sectors like clean energy and construction.

Australia has a deadline to acquire 32,000 electricians by 2030, before that figure skyrockets to 85,000 in 2050 as it seeks to transition to a renewable-powered grid.

As it stands, Jobs and Skills Australia estimates a 27 per cent shortfall in the 25 years to 2050.

In the lead up to the federal election, due by May 17, the Business Council of Australia called for a redesign of the Australian Apprenticeships Incentive System (AAIS) to prepare small, medium and large businesses to train more apprentices and fill the critical workforce gaps.

Their policy wishlist includes a baseline support package for employers of up to $4000 per apprentice for the first two years of an apprenticeship, and up to $3000 per apprentice for the final years.

They’ve also called for additional incentives of up to double the base funding for small and medium sized businesses which can demonstrate high completion rates and a diversity of applicants.

Additionally, large businesses would have access to a fund cost at $40m over four years in order to expand their existing support programs.

While the incentives would apply to all industries, BCA chief executive noted that skills shortages were exacerbated across the clean energy and construction sectors, however skills shortages are more broadly reported in a third of occupations.

The request follows Anthony Albanese’s election pitch to give apprentice plumbers, carpenters, electricians and other fields related to housing construction a $10,000 incentive to finish their courses and boost housing completion numbers.

However Mr Bran said more investment was needed to aid employers, with programs at large enterprises boasting completion rates of 90 per cent, compared to the national average of 50 per cent.

“Businesses tell me that existing employer incentives don’t reflect the true cost of training an apprentice, and that means we need a new approach to ensure businesses are supported to train more people,” Mr Black said.

“Businesses play vital roles in training the next generation of skilled workers, and if employer incentives aren’t increased in amount and scope, we’ll see fewer employment opportunities offered, which will ultimately exacerbate our nationwide skills gaps.”

NSW-based Endeavour Energy chief executive Guy Chalkley said Australia was essentially playing “catch up” in ensuring our workforce is equipped to handle Australia’s green energy transition.

The company, which provides energy to parts of Greater Western Sydney, the Blue Mountains, Southern Highlands and the Illawarra, trains 25 apprentices a year through their purpose-built Technical Training Centre, with members aged between 16 to 38.

As it stands, Mr Chalkley said he didn’t believe Australia was on track to have 80,000 electricians working across Australia.

“What’s coming in a decade’s time needs to be done today,” he said.

“The whole industry, and the whole world is doing that, and you’re chasing the same resource at the moment because we’re all going through the same energy transition.

“Part of the challenge is making sure that the infrastructure sitting behind it – TAFE, and the actual spaces and lecturers to actually accommodate the uptake.”

Mr Chalkley said the extra funding would allow large businesses to better support their apprentices, while also helping companies attract more school leavers and seek overseas electricians to fill in the gaps.

“Trying to attract a 16-year-old into the industry is very hard in Sydney, from an affordability point of view,” he said.

“Similarly, if you’ve got a young family and you’re doing a career change, you’re probably going down in your earning capacity.

“So you’ve got to support how you’re re-skilling people to make sure they do stick in the industry, so they have something that’s hopefully better than what they’ve got at the moment, and makes them more relevant for the future.”

It’s understood the government will consider the BCA’s proposals as part of a wider strategic review of the apprenticeships incentive system, however the program has been costed to be up to $6.5bn.

Skills and Training Minister Andrew Giles said Labor were committed to “fixing the worst skills shortage in half a century,” pointing to mismanagement by the former Coalition government.

“That’s why Labor is making Free TAFE permanent, and it’s why we’ll pay housing construction apprentices $10,000 to get on the tools,” he said.

Deputy Liberal Leader and the Coalition’s spokeswoman for industry, skills and training flagged further announcements from the Coalition, she said businesses no longer had the confidence to hire apprenticeships.

“If a business does not know if they are going to survive another week or another month, how can we expect them to have confidence to put on an apprentice for two to three years,” she said.

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Published May 25, 2025.

A new apprentice mentoring program has been launched by the Federal Government in a bid to increase the rate of female apprentices by 50% by 2028.

The Big Sister Advanced Mentoring Program aims to reduce the non-completion rates of women apprentices and increase the number of women training in the clean energy and construction sectors in South Australia and Western Australia.

The project, a partnership with the Electrical Trades Union, will include a pre-apprenticeship program with industry-based female mentors and a focus on reducing isolation and exclusion of women working in trades.

Employment and Workplace Relations Minister Amanda Rishworth said the program is part of the Federal Government’s efforts to close the gender gap.

“This program is a great example of our commitment to addressing these barriers and providing women in these fields with the tools and mentorship they need in their apprenticeship journey,” Rishworth said in a statement.
Big Sister project

Women make up less than 8% of all apprentices in male-dominated trades, according to the Federal Government and female participation in the energy workforce and energy-related apprenticeships is one of the lowest across all sectors.

The program is part of the Building Women’s Careers (BWC) initiative.

Skills and Training Minister Andrew Giles said improving women’s participation in the workforce is fundamental to addressing the skills shortages in Australia.

“Through initiatives in our BWC Program we are working to ensure these barriers are being addressed to introduce pathways into traditionally male-dominated industries,” Giles said in a statement.

Australia has been making strides when it comes to women’s workforce participation. The latest ABS Labour Force statistics showed that female employment went up by 65,000, including 42,000 full-time jobs, according to an analysis from the Australian Council of Trade Unions.

“More women are in secure work than ever before, and that’s making a real difference to the lives of households and the Australian economy,” said ACTU President Michele O’Neil in a statement.

However, she noted that women are still more likely to be in insecure and undervalued work.

“So there is still more important work to do to build on this progress and close gender gaps in employment and wages,” she added.

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Less Red Tape, More Opportunities

Good news for anyone thinking about starting an apprenticeship—big changes are coming to make the process smoother and help more people qualify! The UK government has just announced reforms that could open up 10,000 extra apprenticeship spots every year.

One of the biggest updates? Employers now have more say over whether adult apprentices (19+) need to pass a GCSE-level English and maths qualification. This means if you’re over 19 and starting an apprenticeship, you might not have to retake exams in these subjects just to pass your training. Instead, the focus will be on real-world skills and work experience—making it easier to get into industries without unnecessary hurdles.

Apprenticeships Just Got Faster

Starting in August 2025, some apprenticeships will go from 12 months down to just 8 months—so you can qualify and start earning faster. This change is being tested first in three key industries:
✅ Green Energy
✅ Healthcare
✅ Film & TV Production

Shorter apprenticeships will also be a big win for industries like construction and social care, where workers are urgently needed. With the government pushing to build 1.5 million homes, this means more jobs and quicker career paths for apprentices in these fields.

Education Secretary Bridget Phillipson says this is all about making apprenticeships work for both businesses and learners. “Our new approach balances speed with quality,” she said, highlighting that getting more people into good jobs is a top priority.

New Skills Taskforce to Shape the Future

To make sure these changes work for young people, a new Skills England leadership team has been set up. These experts will work with employers, training providers, and unions to identify where skills are needed most and which apprenticeships should get the faster-track option.

What Employers Are Saying

The response from big businesses and training providers has been super positive. Industry leaders say that making apprenticeships more flexible will help both young people and career changers get into work more easily.

🔹 Federation of Small Businesses: “This will help small employers fill skills gaps faster.”
🔹 Multiverse (founded by Euan Blair MBE): “It’s a great step toward opening apprenticeships to more people.”
🔹 John Lewis Partnership: “Dropping the GCSE barrier means apprenticeships will be more accessible, especially for those from disadvantaged backgrounds.”

Big brands like Coca-Cola Europacific Partners, Starbucks UK, and John Lewis are already backing the changes, which will help apprentices from all backgrounds, including care leavers and those with learning disabilities.

When Do These Changes Kick In?

🚀 English & Maths flexibility = Effective immediately!
📅 Shorter apprenticeships = Rolling out August 2025 (if approved by Parliament)

With these updates, apprenticeships are becoming faster, more accessible, and focused on real-world experience. If you’ve been considering an apprenticeship but were worried about GCSEs or long training times, now’s the time to jump in!

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What an amazing story of inspiration from The Macarthur Advertiser..

Aspiring hairdresser travels from Grenfell to Narellan for apprenticeship opportunity.

People in Macarthur are used to a bit of a commute to work, but more than 350 kilometres? That’s dedication.

But the long distance from her home in Grenfell to Narellan didn’t bother Tanaya Holz.

The 18-year-old saw that Just Cuts Narellan was looking for an apprentice as part of a new statewide hairdressing apprenticeship scheme, and decided to give it a go. She has become the very first apprentice in the scheme.

Just Cuts Narellan owner Anna Duric said she never expected to get a response to her ad from a small Central West town.

“My first thought was where is she going to live,” Ms Duric said.

As it turns out, Ms Holz’s grandmother lives in Ingleburn and will welcome the teen into her home for the duration of the three-year apprenticeship.

“Tanaya called me the day before the in-person interview to check it was still on, because it’s a four-hour train ride for her to Campbelltown,” Ms Duric said.

“She didn’t want to buy the ticket if it was cancelled.

“When Tanaya came for the interview she brought her grandmother in, and she said she’d do anything to help her granddaughter, as Grenfell is a small town without the opportunities we have here.”

Ms Duric was impressed by Ms Holz’s drive and was happy to take her on as an apprentice.

“It’ll be challenging for her to adjust given she has no friends locally, but we want to give her the practical salon skills she needs to complement her Certificate III in Hairdressing so she’s salon-ready when she graduates in three years’ time,” she said.

“Just Cuts only employs fully qualified stylists, so she was disappointed on her first day not to be able to cut hair – but learning reception skills and customer service is essential to a career as a stylist.”

Ms Duric said there was a national shortage of fully-qualified hairdressers, which she believes is due to a lack of interest in the profession from school-leavers.

She hopes the new apprenticeship program might go a ways to changing that.

“We’re open seven days and we need people to work weekends,” Ms Duric said.

“I think many school-leavers aren’t considering the value of a practical trade – there’s plenty of jobs available.

“You just can’t get your hair cut online, Covid-19 hasn’t changed that.”

“Tanaya’s a great example that all you need is enthusiasm and passion, and a commitment, and the rest will work itself out. Just Cuts is a great place to start because we cut hair for all ages and styles.”

Due to the national skills shortage, apprentices will be eligible to receive $1000 after completing 12 months of the NSW scheme, and a further $1000 at the completion of the three-year apprenticeship term with NSW Just Cuts salons.

To sign up to the Just Cuts NSW salon Apprenticeship Program, or for more information, visit www.justcuts.com.au/careers/current-vacancies.