The cost of training apprentices

This report examines the costs that both employers and apprentices incur for undertaking training in the plumbing and electrical industries. The importance of understanding costs is fundamental. Employers will not take on apprentices if the cost is too high, and prospective apprentices will not undertake an apprenticeship if the future benefits (increased wages) do not outweigh the immediate costs to them. The report is based on data from six case studies of actual electrical and plumbing apprentices. The research found that the apprenticeship model involves a substantial financial commitment from employers, and apprenticeships are more attractive to young people and will remain unattractive to older people, unless the premium paid to qualified tradespeople is substantial. The authors argue that the high cost of apprenticeships will constrain the numbers of employers willing to take on apprentices, especially in a downturn. Therefore, it is worth considering a model which reduces the cost to employers by making more use of institution-based training, so that apprentices require less supervision and are more productive in the workplace. Such a model may not reduce costs overall but would transfer costs from employers to governments and prospective apprentices. Show less