New data from the National Centre for Vocational Education and Research reveals a significant decline in building and construction apprenticeship commencements, with a 22 per cent drop in the year to December 2023.
Only 41,935 individuals began building and construction-related apprenticeships in 2023, compared to 54,035 the previous year.
In response to this concerning trend, Master Builders Australia is releasing a new report titled “Future of the workforce: apprentices in building and construction.”
The report outlines barriers affecting the industry’s ability to attract and retain apprentices and proposes recommendations to reverse the decline.
Denita Wawn, CEO of Master Builders Australia, emphasised the severity of the situation, stating: “Despite a sizeable workforce of over 1.35 million people, the industry is facing acute shortages with an annual exit rate of 8 per cent, of which we are currently only replacing half of that rate.”
She warned that prolonged construction labour shortages could lead to a $57 billion reduction in Australia’s GDP over the next five years.
The report highlights the cultural erosion of trade apprenticeships, with students being pushed towards university education.
Wawn stressed the need for a concerted effort by governments, industry, schools, and the broader community to address this issue.
Recommendations from the report include promoting varied and rewarding pathways to school-aged students, parents, and career advisers, overhauling funding and quality of career education in schools, and investing in programs providing clear information on apprenticeship and career pathways.
The report also suggests supporting schools to integrate vocational education and training into the curriculum, encouraging secondary school students to undertake White Card training, and expanding support for women in building and construction programs.
Additional recommendations focus on financial incentives, such as reintroducing incentive systems for apprentices and employers, introducing tiered wage subsidies for mature-aged apprentices, and funding Group Training Organisations to host apprentices and provide pastoral care.
The report also calls for introducing incentives for industry upskilling, ensuring proportional funding distribution between TAFE and industry-led Registered Training Organisations, and reviewing restrictive Modern Awards and Enterprise Bargaining Agreements.
Wawn acknowledged the federal government’s recent Budget announcements aimed at attracting more apprentices to the building and construction industry but called for expanded measures with stronger support from states and territories.
The report underscores the critical role of improving the domestic pipeline of workers in overcoming the housing crisis and emphasises the importance of both vocational education and training (VET) and higher education in Australia’s education system.
As the industry faces significant challenges in attracting and retaining apprentices, the implementation of these recommendations could play a crucial role in reversing the current downward trend and securing a skilled workforce for the future of Australia’s building and construction sector.
