Ai Group says the system must work for employers to ensure it flourishes
Reforms to Australia's apprenticeship and traineeship system should focus on the economic reality for employers, according to the Australian Industry Group (Ai Group).
Ai Group Chief Executive Innes Willox said reforms should focus on ensuring that the system adds value for employers to ensure that the system thrives.
"The economic reality of the apprenticeship and traineeship system for employers must be at the forefront of decision making," he said in an opinion piece.
"While the perspective of employers is not the only one that matters, a focus on ensuring the system adds up for employers is vital to ensure the system continues to flourish for decades to come."
Previous research from the Ai Group found that 96% of employers continue to face challenges in hiring apprentices or trainees.
Among the top three reasons is the high cost of taking in an apprentice (32%), just behind difficulties in finding suitable candidates and supervising or training on the job (33%).
These challenges coincide with falling apprenticeship and traineeship levels in recent years, according to the National Centre for Vocational Education Research.
Its latest statistical report showed that there were 311,760 active (in-training) apprentice and trainee contracts nationally as of December 2024, down by 8.3% from the previous year.
Trade contracts went down by 2.9%, while non-trade contracts went down by 19.1%, the NCVER data showed.
"Australia's apprenticeship and traineeship system is not producing enough skilled people to meet current needs, let alone the skills we need in the future," Willox said.
"To address widespread skills shortages and get productivity moving, we can't allow this system to simply maintain current levels. We need it to grow."
The Ai Group chief said the change needed will require efforts from governments, the education and training sector, as well as the industry.
"We need more employers willing and able to take on apprentices and trainees. We need those currently employing apprentices and trainees to maximise the opportunities they can provide," he said.
"We also need Australians of all ages to aspire to and seek out the successful career pathways apprenticeships and traineeships provide and be supported to successfully complete their training."
