Behind every great apprentice or trainee is an employer.
The role of employers in the apprenticeship and trainee system is fundamental as no apprentice or trainee can commence their training without someone willing to take them on.
A focus on their views is therefore essential for policymakers and the education and training system.
Australian Industry Group's Centre for Education and Training has released new research that shines a light on the experiences of employers in Australia's apprenticeships and traineeships system — the good, the bad and the ugly.
The research in our report Apprenticeships and traineeships: The employer perspective is underpinned by deep engagement with businesses across the country in a range of industries.
It shows that while employers value apprenticeships and traineeships, their satisfaction with this type of training system is decreasing as associated costs and complexities are increasing. Ninety-six per cent of the employers we surveyed said they faced barriers when hiring apprentices and trainees.
This is alarming.
Over the years, apprenticeships and traineeships have provided a pathway for many thousands of Australians to a wide range of skilled jobs. We know that the pay, employment outcomes and job satisfaction of those who have completed apprenticeships and traineeships exceed many other post-school pathways.
The jobs that apprenticeships and traineeships lead to extend well beyond plumbers, chippies and sparkies. They span many industries and are vital to the priorities we face as a nation — enabling productivity growth, building housing and infrastructure, driving the clean energy transition, lifting our sovereign manufacturing capability and delivering the high-quality services Australians expect.
However, 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. Data from the National Centre for Vocational Education Research shows apprenticeship and traineeship commencements have fallen in recent years and appear to be reverting to around pre-pandemic levels.
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. Without a significant and sustained increase in apprenticeships and traineeships, we risk even greater persistent and embedded skills shortages in this country that will continue to stifle productivity, constrain growth and limit global competitiveness.
The deep connection between learning and work is at the heart of what makes apprenticeships and traineeships so successful, for both employers and the individuals being trained.
However, employing an apprentice or trainee represents a significant multi-year financial commitment.
A range of direct and indirect costs, along with broader business conditions, factor into this decision, just like any other investment decision within the business.
Fundamentally, the equation needs to add up.
Governments and policymakers are currently considering a range of potential reforms to the apprenticeships and traineeships system, including in relation to the current financial incentives paid to employers who take on apprentices and trainees.
Our research tells us that policy settings by governments, including through employer incentives, directly impact this economic equation for businesses of all sizes.
To meet our current and future skills needs, a strong apprenticeship and traineeship system is more important than ever.
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. 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.
The economic reality of the apprenticeship and traineeship system for employers must be at the forefront of decision making.
Our research makes both the issues and the actions that should be taken in response blindingly clear.
The change that is needed will only occur through concerted effort by governments, the education and training sector and industry to drive this uplift. It also requires the community more broadly to recognise and get behind the value of apprenticeships and traineeships as a successful skills development pathway that is central to the future success of our country.
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.
After all, without employers there are no apprentices and no trainees.
