Construction apprentices vital to economy – peak body

New data showing a 22% decline in building and construction apprenticeship commencements in 2023 prompted Master Builders Australia to release the Future of the Workforce report.

According to the National Centre for Vocational Education and Research, only 41,935 people started a related apprenticeship, down from 54,035 the previous year.

Master Builders Australia CEO Denita Wawn (pictured above) stressed the critical need to attract and retain apprentices.

“It will take a village to ensure Australia attracts and retains our next generation of trade apprentices,” Wawn said.

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Workforce shortages and economic impact

The report underscored severe workforce shortages, with an annual exit rate of 8% and only half being replaced.

“Prolonged construction labour shortages will lead to a $57 billion reduction in Australia’s GDP over the next five years,” Wawn said.

Importance of apprenticeships

“For decades, we have seen the cultural erosion of trade apprenticeships with students being pushed towards the university system,” Wawn said. “Apprentices are paid to learn, unlike their higher education counterparts who pay to learn.”

Master Builders’ recommendations

The report offered several recommendations to address these challenges, including promoting diverse career pathways, overhauling career education funding, and integrating vocational training into school curricula.

“It will take a concerted effort by governments, industry, schools, and the broader community to turn this ship around,” Wawn said.

Key recommendations include:

• Promoting varied and rewarding pathways to students, parents, and career advisers.
• Overhauling the funding and quality of career education in schools.
• Investing in programs providing clear, practical information on apprenticeships.
• Supporting schools to integrate vocational education and training early.
• Encouraging secondary students to undertake white card training.
• Expanding support for women in building and construction programs.
• Reintroducing incentives with commencement and completion bonuses.
• Introducing a tiered wage subsidy for mature-aged apprentices.
• Funding cost differentials for group training organisations to host apprentices.
• Introducing incentives for upskilling from Certificate III to Certificate IV.
• Ensuring proportional funding distribution between TAFE and industry-led training organisations.
• Reviewing restrictive modern awards and enterprise bargaining agreements for flexible work arrangements.

Government and community support

The federal government has announced positive measures in the recent budget to attract more apprentices.

“We would like to see these measures expanded with stronger support from states and territories,” Wawn said.

Read the Master Builders media release.

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