The latest data from the National Centre for Vocational Education Research (NCVER) reveals a notable decline in the number of apprentices and trainees across Australia in the March 2024 quarter. While the overall trend shows a reduction, the data highlights significant differences between trade and non-trade occupations, with the latter seeing the largest drop. Despite the downward trend, the total number of apprentices and trainees remains significantly higher than pre-pandemic levels.
Decline in Apprenticeships and Traineeships: Key Figures
As of 31 March 2024, the total number of apprentices and trainees in-training was 351,695, reflecting an 8.9% decrease (down 34,570) compared to the same quarter in 2023. This marks a worrying trend, particularly in non-trade occupations, where the majority of the decline occurred. The drop in non-trade roles stands in stark contrast to trade occupations, which saw a much smaller reduction.
Key Figures at a Glance:
- Total in-training (March 2024): 351,695 (down 8.9% from March 2023)
- Trade occupations: 238,765 (down 1.6% from March 2023)
- Non-trade occupations: 112,895 (down 21.3% from March 2023)
Sharp Decline in Non-Trade Occupations
The most significant drop in apprentice and trainee numbers was seen in non-trade occupations, where the total fell by 21.3%. A particularly large decline was observed among Clerical and Administrative Workers, with numbers dropping by 16,610. Within this category, roles such as Office and Practice Managers and General Clerks experienced significant reductions, falling by 6,365 and 6,055, respectively.
The decline in non-trade occupations raises concerns about the future of administrative and clerical roles in various industry sectors, which rely on a steady influx of trained individuals to fill critical positions. This trend may reflect broader shifts in workforce dynamics, including automation and evolving job market demands in administrative sectors.
Trade Occupations Show Resilience
By contrast, trade occupations have fared better, with a relatively modest decrease of 1.6%. The total number of apprentices and trainees in trade roles was 238,765 at the end of March 2024, suggesting that demand for skilled trades remains robust despite the overall decline in training activity.
The resilience of trade apprenticeships can be attributed to ongoing demand in sectors such as construction, electrical work, and automotive services, where practical skills continue to be critical for economic growth and infrastructure development.
Gender Disparities in Apprenticeship and Traineeship Numbers
The data also sheds light on the gender disparity in apprenticeships and traineeships, with a larger drop in the number of female participants compared to their male counterparts. As of 31 March 2024, there were 95,840 females in-training, representing a 14.8% decrease from March 2023. In contrast, the number of males in-training was 255,620, down by 6.6%.
This widening gap between male and female apprentices and trainees highlights ongoing challenges in achieving gender balance in vocational education and training. It underscores the need for targeted policies to encourage more female participation, particularly in traditionally male-dominated trades.
Quarterly Training Activity: A Mixed Picture
The quarterly training activity for the March 2024 quarter presents a mixed picture of the state of apprenticeships and traineeships.
- Commencements decreased by 2.9%, with 59,615 new contracts signed, reflecting ongoing challenges in attracting new participants to training programs.
- Completions, on the other hand, rose by 10.1%, with 25,580 individuals successfully completing their apprenticeships and traineeships, suggesting that efforts to support retention and completion may be yielding results.
- Cancellations and withdrawals decreased by 12.9%, with 28,825 contracts terminated, a positive sign that more trainees and apprentices are staying in their programs compared to previous quarters.
Annual Training Activity: A Decline in New Starts
Looking at the annual data, which covers the 12 months ending 31 March 2024, the situation is concerning for new apprentices and trainees entering the system:
- Commencements dropped significantly by 18.4%, with only 166,200 new contracts signed over the past year.
- Completions showed a slight increase of 0.8%, reaching 101,920, indicating a stable completion rate despite fewer new entrants.
- Cancellations and withdrawals fell by 12.4%, a positive trend as fewer contracts were terminated prematurely.
Regional and Trade-Specific Trends
The updated NCVER data also includes a new feature in its online tool—a metropolitan shortage rating, providing a clearer view of shortages at both national and regional levels. This allows policymakers, employers, and training providers to better assess where critical skill shortages exist, not just across sectors but also across geographic regions.
The Impact of Pre-Pandemic Levels
Despite the overall decline, it’s worth noting that the number of apprentices and trainees in training as of March 2024 remains 25.9% higher than pre-pandemic levels (March 2019). This indicates that while current trends may be concerning, the long-term outlook for vocational education and training in Australia is still more positive than it was before the COVID-19 pandemic disrupted the labour market.
Addressing the Decline: What Can Be Done?
The data from the March 2024 quarter highlights several areas of concern, particularly in non-trade occupations and gender disparity. As Australia continues to navigate the challenges of a post-pandemic economy, there are several key actions that policymakers and industry leaders could take to address the decline:
- Incentivising Participation in Non-Trade Occupations: With administrative and clerical roles seeing sharp declines, there is a need for targeted incentives to attract more apprentices and trainees to these vital sectors.
- Promoting Gender Balance: Addressing the gender disparity in apprenticeships, particularly in non-trade occupations, should be a priority. Encouraging female participation in male-dominated trades, and vice versa, could help alleviate shortages and create a more diverse workforce.
- Supporting Employer Engagement: Employers need to be encouraged to adopt more flexible and supportive practices to retain apprentices and trainees. This could include providing better pay, work conditions, and pathways to permanent employment.
- Fostering Resilience in Trade Occupations: While trade occupations have shown resilience, continued investment in training for skilled trades will be crucial to maintaining the country’s infrastructure and economic development.
A Call for Action
The latest data from the NCVER underscores the importance of addressing the challenges facing Australia’s apprenticeship and traineeship system. While there are positive signs, such as higher completion rates and a reduction in cancellations, the decline in commencements and the sharp drop in non-trade occupations point to the need for renewed efforts to attract and retain talent in these vital areas.
Policymakers, educators, and employers must work together to ensure that Australia’s vocational education and training system remains robust and adaptable to the changing needs of the economy. By addressing the gender imbalance, incentivising participation in non-trade occupations, and supporting apprentices and trainees throughout their training, Australia can continue to build a skilled and resilient workforce for the future.
