Apprenticeships still the most valuable way to address skills shortages

It may surprise you to hear that the apprenticeship model in Australia has been around as long as European settlement — almost 230 years!

But the reason it’s lasted so long is because it has evolved with the times and continues to evolve as society changes.

But there’s been a worrying decline in the number of apprenticeship and training commencements in recent years, on the back of major economic disruption. Unfortunately, when there is an economic downturn, employers can find it understandably difficult to commit to taking on apprentices and trainees, and are, of course, far less financially able to do so.

While it’s expected that numbers will fluctuate as economic conditions do, the downward trend has continued steadily since 2012.

Last year’s figures, released by the National Centre for Vocational Education Research (NCVER), showed that apprenticeship and training commencements between March 2014 and March 2015 decreased by almost 20% on the year prior.

The situation is dire enough to warrant a stern warning from Federal Senator and Minister for Education and Training Simon Birmingham, that without a strong supply of apprentices, Australia’s economic performance would be placed at risk.

At last year’s INAP Conference, Senator Birmingham praised the apprenticeship model, and said its beauty lay in its work-placed learning nature.

“We can have great confidence that it is always up to speed in terms of its linkage with employment outcomes, with the needs of business, and it is why I think it is such a successful and iconic model here in Australia and many other corners of the world,” Birmingham told conference attendees.

“We see great strengths in this system. There are many things that do work in relation to apprenticeships. It of course helps to deliver highly trained, highly skilled individuals and it is well regarded internationally, and that is demonstrated by the presence of so many of you here today and this conference coming to Australia,” he said.

Senator Birmingham warned that it has never been more important to get more people and more businesses embracing the opportunities that apprenticeships have to offer.

As we all know, the long-term effects of low apprenticeship numbers naturally include skill shortages, and a comprehensive list of these trades can be found on the National Skills Needs List, which is based on detailed labour market research and analysis undertaken by the Department of Employment.

And electricians — both general and special class — are on this list. Our profession is officially considered as a skills shortage, so if you’re thinking about putting on an apprentice, now is the time.

On a positive note, under the Australian Apprenticeships Incentives Program, an Australian apprentice undertaking a Certificate III or IV qualification that leads to an occupation that’s listed on the National Skills Needs List may be eligible for additional employer benefits and personal benefits.

Some of the employer benefits can include support for Australian Apprentices payments, the Rural and Regional Skills Shortage incentive and Trade Support Loans.

Apprenticeships help young people move into meaningful employment and to make the transition from school to work. But while young people most certainly still dominate (approximately 13% of young people aged 15–19 who are in employment are in apprenticeships), the Australian Apprenticeships Incentives Program is also a great way for employers to take on a mature-age apprentice — in fact, almost one in four current apprentices across all industries is aged between 25 and 39. Some of the most recent evidence actually suggests that mature-age apprentices 45 and over are the most likely of all age groups to finish!

But we do believe we need more incentives for employers to put on apprentices. We have to make it more viable for SMEs in the electrical industry to play their part in turning these figures back around, and we’d like to see all sides of government come together to offer more support to Aussie businesses when it comes to apprenticeships and traineeships.

Image credit: ©iStockphoto.com/Lisa F. Young