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This study was undertaken in response to the recent strong surge in apprentice intake that occurred within the context of skills shortages across a broad range of occupations. The study aims to: identify the causes of the large increase in apprenticeship intake in 2004; determine if the rate of increase in apprentice commencements is likely to be sustained over the next 12 months; identify the factors that would encourage employers to take on more apprentices; and assess the implications of the findings for public policy directed at increasing apprentice intake and redressing future trade skills shortages. Key findings of the study include: the apprentice training rate in 2004 was at its highest level since 1992; the single most important reasons given by employers for taking on apprentices in 2004 relate to rising workloads, difficulty recruiting tradespersons in the external labour market and difficulties retaining existing skilled tradespersons; government incentives are important for employers; aggregate data indicates that growth in the level of apprentice intake is almost entirely the result of growth in the number of firms taking on apprentices rather than an increase in the number of apprentices taken on per firm; the current level of apprentice wages is not a disincentive to employ an apprentice; the key factors that would encourage employers to take on more apprentices are higher government incentives and a higher level of output (both of equal importance), and a lift in the quality of applicants; the most commonly requested change that employers would like to see was higher government subsidies; Group Training Organisations account for around one in every five apprentices employed and have experienced significant growth; a diverse range of factors contribute to young people considering undertaking an apprenticeship, such as publicity about skill shortages, rising tradesperson wages, rising apprentice vacancies, a reluctance to undergo further full-time study and seeking a reasonable income and the prospect of autonomy and self-employment; and key policy issues that need to be addressed by government include maintaining the increased role of the public sector as a direct employer of apprentices, improving apprentice completion rates, improving forecasting of skill shortages, reforming financial incentives for employers and apprentices, and ensuring adequate resourcing of Group Training.