Skills shortages still severe despite apprenticeships hitting an all-time high

New data from the National Centre for Vocational Education Research (NCVER) has reveals that apprentices and trainees have increased by almost 17 per cent on last year, and that this number is an all-time high.

However, NCVER is pointing out that the increase in apprenticeships is not enough to adequately address the skills shortages that Australian businesses are currently facing.

The National Skills Commission’s annual report for 2021 revealed that 45 per cent of Australian employers reported that they have been experiencing issues filling vacancies. Meanwhile, the most recent national Skills Priority List found that 42 per cent of technician and trade occupations are suffering a talent shortage.

According to the 2022 Australian Bureau of Statistics June survey for Business Conditions and Sentiments, skill shortages are putting industries relying on trade workers, labourers, and hospitality workers under pressure.

Executive Director of the AEN, Gary Workman, stressed that addressing the disconnect between high apprentice numbers and an ongoing skills shortage is crucial in keeping the lights on for some businesses.

“Apprenticeships are a long-term solution to address skill gaps in the workforce, the current apprenticeship boom needs to be continued to assist with addressing those gaps,” Workman said. “Additional measures are also needed to ensure youth have sustainable career options and businesses can continue to build the skills they need.

“The Treasurer is looking for more efficient ways to do things. The obvious place to start would be by ensuring employers are only subsidised for genuine new apprenticeships,” Workman added. “These are some of the key issues the government must consider at the September Jobs and Skills Summit.”

The NCVER findings have been released to coincide with National Skills Week which is runs until 28 August. This year’s National Skills Week theme is “A Universe of Skills: Go Beyond Your Imagination”.