September 14, 2015
Figures show fall in Australian apprentices and trainees
The number of Australians starting apprenticeships and traineeships declined by almost 20% in the year to March 2015, according to the latest official figures.
The most recent quarterly report from public body the National Centre for Vocational Education Research (NCVER) shows the number of people starting apprentice and trainee programmes declined to 190,200 in the 12 months ending March 31, a decrease of 19.8% on the previous year.The figures show some regional variation among Australia’s states and territories. New South Wales had the biggest decrease of 24.6%, while the Northern Territory had a 21.2% increase.
The NCVER’s Mette Creaser attributed the decline to conditions in the labor market, commenting that: “When business confidence is subdued, fewer employers take on apprentices and trainees, so in view of the labor market conditions in the first quarter of this year, we expected to see fewer people starting apprenticeships and traineeships.”
However, separate figures show that overall employment in Australia rose by 17,400 jobs in August, with the unemployment rate now at 6.2%, as low interest and currency rates encourage recruitment.
IZA World of Labor author Werner Eichhorst has written about the effectiveness of vocational training in addressing youth unemployment. He argues that vocational training cannot be seen as a “quick fix”, and that: “Structural reforms to revive the economy and reduce entry barriers to employment are also needed. Since most countries already have some form of vocational training program they could start with existing elements to bring vocational education and training closer to employer and labor market needs.”
Robert Lerman has also written for us about the benefits to firms of investing in apprenticeships. Noting that apprenticeships are usually profitable, he writes: “By providing firms with information on economic returns, by helping them set up apprenticeships, and by funding off-site training, policymakers can promote the expansion of effective career training and increased worker earnings with only modest public expenditures.”
Read more on this story at the Sydney Morning Herald. Find the NCVER’s quaterly report here.
Related articles:
Does vocational training help young people find a (good) job? by Werner Eichhorst
Do firms benefit from apprenticeship investments? by Robert Lerman
Youth labor market interventions by Jochen Kluve
Find more IZA World of Labor articles about vocational education, training skills, and lifelong learning here