Apprenticeship and trainee numbers soared in Australia last year – almost everywhere except in the ACT, according to a report published this week.
The National Centre for Vocational Education Research (NCVER)’s statistical report on apprentices and trainees (released on Thursday), revealed the ACT lagged well behind every other jurisdiction except the Northern Territory.
The ACT Government, however, states that the the Territory was coming off a high base compared to other jurisdictions, and not all students undertook traineeships or apprenticeships.
But this could also be due to the ACT Government cutting funding to the sector, the Canberra Liberals suggest, based on submissions from education and industry bodies.
For the 12 months ending 31 December 2020:
| Australia | ACT | |
| People in training | +13.9% | +1.7% (lowest increase of any jurisdiction) |
| Commencements (December 2019 to December 2020) | ||
| Number of commencements | +10.6% | -5.7% |
| Trades | +8.3% | -13.6% |
| Non-trades | +12.6% | -0.5% |
| Men | +8.4% | -4.4% |
| Women | +14.6% | -7.5% |
Commencement percentages increased in NSW, Queensland, South Australia, and Western Australia. In Victoria, trade commencements (-0.8%) and men (-1%) were down – but both were better than the ACT. In Tasmania, new non-trade commencements were down 5.1% (worse than the ACT), and the number of men was down 3.4% (better than ACT).
Only the Northern Territory performed worse than the ACT on almost every measure: commencements were down 8.7%, non-trades were down 15.8%, men were down 5%, and women were down 13.6%.
Positively, the ACT had the lowest decrease in the number of completions (-7.5%), and the third highest decrease in cancellations and withdrawals (-17.5%) after Victoria and the Northern Territory.
The NCVER suggested the national increase could be due to the Federal Government’s Boosting Apprenticeship Commencements wage subsidy, which reimburses half the wages employers pay a new / recommencing apprentice / trainee for a year, to up to $7,000 per quarter.
Government response
An ACT Government spokesperson said that the number of students undertaking government-funded training had increased in recent years. Not all of these students undertook traineeships and apprenticeships, as many of Canberra’s knowledge-industry employers sought workers with different kinds of skills.
The spokesperson said the ACT Government was committed to supporting more businesses to take on apprentices and trainees, particularly in the trades. This week, the government released its latest User Choice subsidy list, with subsidy levels for most of the qualifications on the Skills Needs List increasing.
The ACT experienced a stronger than average growth rate of the number of apprentices in training between 2015 and 2019 compared to other states, the spokesperson continued.
According to NCVER, the number of apprentices in-training in the ACT grew by 15.2% between 2015 and 2020 (from 5,540 to 6,380) compared to a national growth rate of 8.9%.
In relation to commencements, like for the number of apprentices in training, the ACT was coming off a high base, the spokesperson stated.
“The ACT saw an increase of 36.2% between 2015 and 2019, and commencements reached a record number of 4,790 in 2019. By comparison, on a national level, the number of commencements decreased by 12.3% over that same period.
“Current ACT Government subsidies are giving employers, future employees and students the support they need to succeed,” the spokesperson said.
Government cuts responsible?
However, ACT Government funding seems to have declined over this period.
Last year, the ACT Government cut funding by 30% to 50% across Vocational Education and Training qualifications (including early childhood education, digital media, and community services). The Independent Tertiary Education Council Australia (ITECA) predicted the ACT would face a long-term skills shortage. Master Builders ACT were dismayed to see the government cut subsidies to work health and safety, carpentry, and plumbing training courses.
During the pandemic, however, Skills Canberra returned apprenticeship subsidy amounts to pre-COVID levels, and offered training organisations 50% payments where students had begun but not finished units of competency.
Nevertheless, in their budget statement, MBA were concerned that the level of ACT Government funding support to train apprentices in the construction industry was slowly trending down compared to other jurisdictions. The National Skills Commission Vacancy Report March 2021 stated that ACT subsidies for construction trades were at the lowest end compared to all other Australian jurisdictions.
The MBA has called on the ACT Government to increase funding for trade apprentices to the national median, then to the top funding quartile over three years; provide targeted wage support for construction employers who hired unemployed people from industries affected by the pandemic; and provide $2,000 per apprentice for pastoral care.
The MBA also stated that women comprised only 7.6% of the ACT building and construction industry – the lowest of any state or territory. They say that addressing this “shocking” statistic must be a priority for the ACT Government and local construction industry.
The MBA called on the ACT Government to provide annual funding of $100,000 each for the MBA’s women in trades and civil programs, and mentoring program (previously supported by the ACT Government).
The Canberra Liberals also called on the ACT Government to increase subsidies.
“Increased funding will help training organisations attract and retain apprentices to meet workforce needs,” said James Milligan MLA, Shadow Minister for Vocational Training and Skills.
“It is clear this government is not doing enough when it comes to funding and supporting apprentices and trainees in the ACT,” he said.
Opposition leader Elizabeth Lee said the ACT Government’s lack of investment in the sector had exacerbated the skills and labour shortage.
“Last financial year, the ACT Government admitted to an infrastructure underspend of a whopping $250 million, blaming concerns with the sector’s ‘capacity’ to perform. It is clear from these figures that this government’s lack of respect and funding for the sector has put the ACT at the bottom of the pack, which will have lasting impacts for the future of Canberra.”
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