According to numerous media outlets and the National Centre for Vocational Education Research (NCVER), apprenticeships are currently at their lowest level in at least a decade. Despite this statistic, the state of Victoria have appeared to buck the trend. Victoria has recorded a rare rebound in structured training commencements, particularly apprenticeships. In fact preliminary data from Victoria’s 2015 Training Market Report indicates that the number of sign ups for apprenticeships within the state have risen by 5% in the last year.
NCVER has also confirmed from their most recent report that the Victorian apprenticeship take-up had increased by 2200 apprentice sign ups in September 2015 from the previous year. Meanwhile the rest of Australia experienced a decline of 1700 sign ons within that same time frame.
Victoria Skills Minister Steve Herbert stated in comments recently made to the Australian, that he believed the decline in apprenticeships could be the result of “students slowly regaining confidence in the training system being rebuilt, albeit from ‘a very low base’, following a crackdown on dodgy training”.
Herbert also speculated on the reasons for the slump in apprenticeships in the first place and reasoned that the rapidly growing VET-FEE-HELP loans scheme had a significant impact. He believed that the scheme as well as certain incentives some organisations were offering students like laptops, were luring individuals into diplomas and away from apprenticeships.
However, thanks to the government crackdowns and new reforms which have prohibited the handing out of ‘gifts’ and give-aways’ to potential students, Herbert hopes for a gradual renewed interest in apprenticeships.
His said his government will be undertaking research into the states current attitude towards vocational education and particularly apprenticeships, to determine any link between the rise in interest in Victoria, when compared to the rest of the country.
While an increase in Victorian sign ons is promising, it still does not take away from the ‘apprentice slump’ that Australia is currently facing. The latest release of apprentice and trainee data from NCVER show there were 295 300 people undertaking an apprenticeship or traineeship at the end of September 2015, a decrease of 13.7% compared with the same time in 2014. The overall trainee and apprentice completions have decreased by 6.0% in the last year, while commencements have decreased by an alarming 19.3%.
The national manager of statistics and analytics for NCVER Dr Mette Creaser, believes there are a number of reasons that have contributed to the decline in commencement numbers.
“Previous NCVER research has shown that a subdued labour market and the uncapping of university places have had an impact on people entering into apprenticeships and traineeships”.
So what does this mean for the training organisations providing traineeships and apprenticeships? Is the need for this form of training no longer relevant in Australia?
According to NCVER, there is still a vital need for both traineeships and apprenticeships within our economy. Dr Creaser argues both forms of education are a predominant way to ensure the population possess the trade skills necessary to ensure a productive economy. Many are worried that this downturn will act as a catalyst for a national skills shortage.
Consequently, NCVER have conducted some thorough research on how training organisations can increase the completion rates of both apprenticeships and traineeships. NCVER first acknowledge that the reason for individuals leaving training programs are often varied; it could be due to their low socio-economic background, limited english, gender, the particular occupation or industry they’re in (construction, hairdressing etc) to name a few.
After a thorough investigation and seeking the option of numerous experts within the industry:
-To ensure that there is an adequate induction process for all individuals embarking on a traineeship/apprenticeship
-Developing thorough identification and monitoring strategies on those individuals at risk of dropping out and persisting with following up on their progress,
-Introducing more English as a Second Language (ESL) options
-Thorough monitoring and auditing of workplace supervision.
Meanwhile, the government have classed the apprentice ‘slump’ as a high priority. Because of this, NCVER are continuing to conduct studies into the reasons why individuals are choosing to partake in apprenticeships or traineeships and the motivating factors that keep them there. These findings will hopefully provide greater insight into how to resolve Australia’s current predicament.
To find out more, visit NCVER’s website