In response to new data showing a 22 per cent drop in building and construction apprenticeship commencements in 2023, Master Builders Australia has released a report that underlines the importance of attracting and retaining Australia’s next generation of trade apprentices.

According to the National Centre for Vocational Education and Research, only 41,935 people commenced a building and construction-related apprenticeship in 2023, down from 54,035.

Master Builders Australia’s report ‘Future of the workforce: apprentices in building and construction’ highlights some of the barriers impacting the industry’s ability to attract and retain apprentices while recommending a series of measures to reverse this trend.

“Despite a sizeable workforce of over 1.35 million people, the industry is facing acute shortages with an annual exit rate of 8%, of which we are currently only replacing half of that rate,” says Master Builders Australia CEO Denita Wawn.

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

“The role of improving our domestic pipeline of workers is critical to overcoming the housing crisis,” Wawn noted.

“For decades, we have seen the cultural erosion of trade apprenticeships with students being pushed towards the university system. Apprentices are paid to learn, unlike their higher education counterparts who pay to learn. VET and higher education are both integral parts of Australia’s education system and should be viewed as such,” she says.

With the Federal Government making a range of positive announcements aimed at attracting more apprentices into the building and construction industry in the recent budget, Wawn expects to see these measures expanded with stronger support from states and territories.

Recommendations include:

  • Promoting varied and rewarding pathways to school-aged students, their parents and careers advisers.
  • Supporting schools to adopt better integrated vocational education and training into the school curriculum especially in early high-school years.
  • Expanding support for women in building and construction programs.
  • Reintroducing an incentive system with commencement and completion bonuses to apprentices and employers.
  • Introducing a tiered wage subsidy that better supports mature-aged apprentices and reflects existing skill levels.
  • Introducing incentives to encourage industry upskilling from a Certificate III to a Certificate IV.
  • Ensuring funding is proportionally distributed between TAFE and industry-led Registered Training Organisations.

Image source: Master Builders Australia